One of India’s leading solar power developers has announced the introduction of a scheme designed to make solar PV installations more attractive to the average consumer.
In partnering with Bajaj Finance, Tata Power Solar will provide interest-free loan options for solar products provided the cost of the item in question is below Rs 2.5 lakh, which equates to US$4,000.
The loan option, known as an EMI (equated monthly installment) will be applicable to Tata Power Solars products, which include solar panels, solar water heaters and solar lighting products. Rolled out initially in 20 of Indias largest cities, the scheme is designed to make funding a private residential solar PV installation more affordable for the average Indian consumer.
Should the initial roll-out prove successful, Tata will expand the scheme nationally in a move that could seriously augment Indias residential PV sector.
"We have ensured that the offer is simple and without any hidden cost," said Tata Power Solar VP Gagan Pal. "There are a number of people who are hesitant to invest in solar due to the initial upfront cost. We are sure that this offer, with its strong financial incentive, will help people find our products very affordable."
Bajaj Finance Ltd, which will underwrite the loans, added that it has developed credit policies to ensure the customer enjoys hassle-free service. "This life event should be about buying the desired solar device without having to worry about the money," said Bajaj Finance president for consumer finance, Devang Mody.
Tata Power Solar is adamant that such solar installations can help soothe many Indians exposure to the power outages that regularly hit the nation’s largest cities, while also stripping away the large upfront costs that have deterred millions of residents from adopting solar PV as an energy solution.
Thus far, Tata Power Solar has been a key mover in India’s utility scale solar sector, commissioning a series of large-scale solar plants across the country and boasting more than 70 MW of cumulative installed PV capacity nationwide.