List of banks for a loan for solar power plant
Ready to flip the switch on your power bills? Thinking about harnessing the sun’s endless energy with a rooftop solar plant? You’re not alone! The eco-friendly and cost-saving benefits of solar power have made it a hot topic for homeowners and businesses alike. But let’s be real, the initial investment can feel a little daunting.
Good news! The Government of India is making the solar dream more accessible than ever with fantastic incentives and schemes. And with these government pushes, many banks have stepped up to the plate, offering specialized loans that make the upfront cost a breeze.
So, if you’re asking, “Which bank should I go to for a solar power plant loan?”, you’ve come to the right place. We’ve put together a list of some of the top banks that are helping to power India’s solar revolution, from residential rooftops to large-scale commercial projects.
A quick heads-up: While we’ve compiled this list for your convenience, it’s always best to check the official bank websites for the latest and most detailed information on their loan schemes. Loan criteria, interest rates, and special offers can change, so a quick visit to their site is a crucial step in your solar journey!
Solarva Business Values
At Solarva our culture comes to life through three core values:
- We seize opportunities to innovate and grow
- We are one firm with a shared sense of purpose
- We care about each other and the world around us
Our business consulting programs helps to break the performance of your business down into customers and product groups so you know exactly which customers or product groups are working and which ones aren’t you can make the changes needed to get the best results out of your business.
Our business consulting programs helps to break the performance of your business down into customers and product groups so you know exactly which customers or product groups are working and which ones aren’t you can make the changes needed to get the best results out of your business.
These are the concepts that shape our distinctive culture differentiate us from others. They ture the spirit of our Firm guide the behaviors that enable us to deliver the promises we make to our clients and our people.
State Bank of India (SBI): “Surya Shakti” for SMEs
SBI’s “Surya Shakti – Solar Finance” is designed for SMEs and business enterprises looking to install rooftop or ground-mounted solar projects. They have a centralized processing system, ensuring a quick and efficient sanction process.
- Loan Amount: You can get a loan of up to ₹10 crores.
- Repayment: The maximum repayment period is 10 years, including the initial moratorium period.
UCO Bank: Light Up Your Home with “UCO Suryodaya Loan”
Got a home and a rooftop just begging for some sunshine? The “UCO Suryodaya Loan” is tailored for individuals between 21 and 75 years of age who want to install a grid-connected rooftop solar system.
- Project Size: The loan covers solar panels with a capacity of 3 kW or more.
- Loan Amount: You can get up to ₹2 lakhs for systems up to 3 kW and a maximum of ₹6 lakhs for systems above 3 kW.
- Repayment: You have a generous 10-year repayment period, with a 6-month moratorium period included.
- Subsidy Benefits: This scheme comes with attractive subsidy benefits, including ₹30,000 for 1kW, ₹60,000 for 2kW, and ₹78,000 for 3kW and above.
Bank of Baroda: Fueling MSMEs with Solar Finance
Bank of Baroda offers “Financing Solar Projects” for MSME businesses and large corporations. This is a great choice for grid-connected rooftop and ground-mounted solar projects.
- Who Can Apply: This scheme is open to income-generating MSME businesses across India.
- Loan Amount: The loan ranges from a minimum of ₹10 lakhs to a maximum of ₹30 crore.
- Repayment: The loan can be repaid over 10 years, with a moratorium period of up to 18 months.
- Age Criteria: The age limit for proprietors is 25-65 years, and for individual guarantors, it’s 21-65 years.
Union Bank: Powering Businesses with “Union Solar”
For businesses of all sizes looking to go green and cut down on massive electricity bills, Union Bank’s “Union Solar” is a fantastic option. This term loan is designed specifically for commercial projects, whether you’re planning a ground-mounted or rooftop solar system.
- Loan Amount: Get started with a loan anywhere from ₹10 lakhs up to a whopping ₹16 crores.
- Project Size: The scheme covers commercial projects with a minimum capacity of 10-20 kW and a maximum of 4 MW.
- Repayment: You’ll have up to 10 years to repay the loan, which includes a moratorium period of up to 6 months.
- Collateral: For loans up to ₹8 crore, you won’t need any additional collateral. Talk about a smooth process!
Punjab National Bank (PNB): Specializing in Residential Rooftops
PNB’s “Financing Of Rooftop Solar Power Systems” is a great scheme for homeowners, focusing on residential solar projects with a maximum capacity of 10 kW.
- Loan Amount: The loan amount ranges from ₹50,000 to ₹70,000 per kW.
- Who Can Apply: Both married and unmarried individuals can apply, either solely or jointly.
- Age Limit: The maximum age for the loan is 75 years.
- Repayment: The maximum return period is 10 years.
Bank of India (BOI): “PM Surya Ghar” for Homes and Societies
Bank of India’s “PM Surya Ghar – BOI Star Rooftop Solar Panel Finance Loan” is available for both individuals and housing societies.
- Loan Amount: Individuals can get a loan of up to ₹6 lakhs, while housing projects can access up to ₹10 lakhs.
- Repayment: The loan has a repayment period of up to 120 months (10 years).
- Age Limit: The borrower should be a maximum of 70 years old at the time the loan is fully repaid.
Central Bank of India: With “PM Surya Ghar Muft Bijli Yojana” Benefits
Central Bank of India offers a loan directly under the “PM Surya Ghar Muft Bijli Yojana,” making it easy to access the government’s subsidy benefits.
- Eligibility: Borrowers with a CIBIL score of 680 or above are eligible.
- Repayment: The loan has a maximum repayment period of 120 months (10 years).
Bank of Maharashtra: For Residential Solar Projects
The “Mahabank Rooftop Solar Panel Loan Scheme” from the Bank of Maharashtra is perfect for residential projects with a capacity of up to 10 kW.
- Loan Amount: For projects up to 3kW, the loan amount ranges from ₹10K to ₹2 lakhs. For projects above 3kW, it goes up to ₹10 lakhs.
- Age Criteria: The minimum age to apply is 21, and the maximum is 70 years.
- Repayment: The loan has a 10-year repayment period, including a 6-month moratorium.
Federal Bank: “Green Loan” for Housing Societies
Federal Bank’s “Pre-approved Green Loan Scheme” is specifically for housing societies and trusts looking to install solar panels.
- Loan Amount: Term loans of up to ₹100 lakhs are available.
- Repayment: The loan must be returned in 85 months.
- Collateral: For a loan amount up to ₹50 lakhs, no collateral is required.
GSC Bank: A Loan for Every Solar Project
The Gujarat State Co-operative Bank (GSC Bank) caters to both domestic and commercial solar projects.
- For Domestic Projects: Get a loan of up to ₹10 lakhs with a 7-year term.
- For Commercial Projects: Access a loan of up to ₹15 crore, also with a 7-year term.
- Interest Rates: You have the flexibility to choose between fixed or floating interest rates.
Conclusion
Installing a solar power plant has never been more achievable. With the government’s strong push for renewable energy and the wide range of loan options from these banks, you can make the switch to solar and enjoy a future of free, clean energy.
Ready to start? Take a closer look at these banks, compare their offerings based on your project’s needs, and take the first step toward a brighter, more sustainable future!
Frequently Asked Questions
Q1. What documents do I need to get a solar panel loan?
A. To get a solar panel loan, you will typically need to provide valid identity and address proofs, income statements, property ownership documents, solar panel plan approvals, and a quotation from your solar panel vendor.
Q2. Who is eligible for the PM Surya Ghar Muft Bijli Yojana?
A. Indian citizens who own a home with an open rooftop and a valid electricity connection can benefit from this scheme. The applicant must not have already availed of any other solar subsidy.
Q3. Which is the best bank for a solar panel loan?
A. The "best" bank for you depends on your specific needs—whether it's a residential or commercial project, the required capacity, and your eligibility criteria. However, banks like SBI, Union Bank, UCO Bank, and Bank of Baroda are all trusted institutions with excellent solar loan schemes.
