loan for solar power plant


 Loans for solar power plants, from rooftop systems to large-scale projects, are available from major banks (SBI, PNB, Union Bank) and specialized lenders, often with government support like PM KUSUM or PM Surya Ghar, featuring competitive interest rates (around 7-9%+) and flexible repayment, with options for collateral-free loans (MUDRA) or vendor-backed schemes to finance residential, MSME, or utility-scale installations. 

Types of Solar Loans & Lenders
  • For Individuals/Residential: SBI Surya Ghar & PNB Rooftop Solar Loans offer funds for rooftop panels, sometimes with subsidies, for personal use.
  • For MSMEs/Businesses: SBI Surya Shakti, Union Solar (Union Bank), and Tata Capital provide financing for rooftop or ground-mounted projects for captive use, with varying loan limits (e.g., ₹10L - ₹16Cr).
  • For Farmers: PM KUSUM scheme offers loans and subsidies for solar pumps and small power plants to boost irrigation and income.
  • For Larger Projects: Indian Renewable Energy Development Agency (IREDA) offers project-specific financing, often with international support.
  • Micro-Enterprises: MUDRA Loans (Shishu, Kishore, Tarun) provide collateral-free loans up to ₹10 lakh for small solar businesses.
  • NBFCs: Tata Capital, Ecofy, Electronica Finance offer faster processing but potentially higher interest rates for various scales. 
Key Features & Requirements
  • Interest Rates: Generally range from 7% to 9%+ p.a., varying by lender and scheme.
  • Tenure: Repayment periods can range from 10 to 15 years.
  • Margin Money: Typically 10-30% of the project cost, but some schemes (like Union Bank) offer up to 80% without collateral.
  • Eligibility: Requires good credit (CIBIL score >650 for some), property/income proof, and alignment with scheme guidelines (e.g., EPC contractor registration).
  • Subsidies: Available under schemes like PM KUSUM and PM Surya Ghar, reducing loan quantum. 
How to Apply
  1. Assess Need: Determine project size (kW/MW) and type (rooftop/ground-mounted).
  2. Check Eligibility: Review criteria for personal, business, or farmer schemes.
  3. Gather Docs: ID, address proof, income proof, property documents, project quotes.
  4. Apply: Through bank branches (SBI, PNB, etc.), NBFCs, or solar partners.