Tata Power Solar Systems Limited (TPSSL) will partner with the Indian Bank to bolster the adoption of affordable rooftop solar in the residential segment by making low-interest loans available to consumers.

Under the partnership, financing solutions will be offered for installations up to 3 kW under the Pradhan Mantri Surya Ghar Muft Bijli Yojana and installations with capacities from 3 kW to 10 kW under the regular program.

Residential consumers can avail loans up to ₹200,000 ($2,401) at a 7% annual rate of interest. Homeowners will also benefit from the nominal margin money requirement of 10%, collateral-free financing, and a flexible repayment tenure extending up to 10 years.

TPSSL, a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), and Indian Bank will offer a customized financing solution for installations with capacities between 3 kW and 10 kW.

To accommodate homeowners’ diverse needs and requirements, they will also allow eligible applicants to access loans up to ₹600,000 ($7,204) with a margin money requirement of 20%. Interest rates range from 8.4% to 10.85% per annum.

“This collaboration marks a significant step forward, offering tailored financing solutions to empower homeowners while seamlessly aligning with government initiatives like the PM Surya Ghar: Muft Bijli Yojana, aimed at promoting rooftop solar adoption. Together, we are poised to harness our collective expertise and resources to illuminate households and catalyze energy transition nationwide,” said Deepesh Nanda, CEO and  Managing Director of TPREL. TPSSL has a rooftop solar portfolio of 2 GW.

The companies believe the collaboration will help the widespread adoption of solar solutions across the country.

” By offering financial assistance and expertise, we aim to make a significant contribution to India’s energy objectives and ensure the success of this laudable initiative,” said Vikas Kumar, Chief General Manager (Retail Assets and MSMEs) at the Indian Bank.

Earlier this year, the government announced a budgetary outlay of $9.04 billion for the PM Surya Ghar Muft Bijli Yojana.

According to Mercom India Research’s 2023 Q4 & Annual Mercom India Rooftop Solar Market Report, India installed 1.7 GW of rooftop solar capacity in 2023, the second-highest annual installation numbers on record.