Financing distributed solar energy in India

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From pv magazine India

Sustainable development expert Auroville Consulting has published a report on the current status of grid-connected rooftop solar financing in Tamil Nadu, taking into account the implementation of the international lines of credit by various banks in the state.

Public-sector banks like the State Bank of India (SBI) and Punjab National Bank (PNB) have an advantage over the Indian Renewable Energy Development Agency (IREDA) as they have branches all over the state, including rural areas, according to the report. 

On the other hand, IREDA, being a dedicated company to promote the renewable energy sector, has the advantage of obtaining large government and international development funds for this specific purpose. However, its current restriction on financing with a minimum loan amount of INR 50 lakh ($67,618) attracts large-scale projects, though it is currently making efforts to also include small-scale rooftop solar generation.

Given public-sector banks’ wider reach, the report suggests increasing the number of branches equipped to deal with rooftop solar financing in order to improve the availability to these financing facilities, which is low.

To keep reading, please visit our Indian site.

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