The article has been updated with the correct dollar conversion

YES BANK  will provide term loans of up to ₹30 million (~$365,901) with a six-year tenure and six-month moratorium for micro, small, and medium enterprises (MSMEs) manufacturers to install ground-mounted or rooftop solar systems for their own electricity consumption.

For the YES KIRAN program, the bank has partnered with original equipment manufacturers and solar solution companies such as Tata Power Solar Systems, Goldi Solar, Loom Solar, and companies like Panasonic Solar Power System to promote the installation of solar systems.

Through this program, the bank aims to encourage adopting sustainable energy practices among small and medium-sized enterprises while also helping them reduce costs by minimizing expenses on power and fuel.

The financing program can benefit MSMEs from reduced operational costs, flexible loan tenures with competitive interest rates, end-to-end support from YES BANK, and access to a wide range of leading solar panel manufacturers and installers for informed decision-making.

The bank said the program’s introduction demonstrates its commitment to promoting renewable energy as a primary power source.

Dhavan Shah, the country head of SME banking at YES BANK, said YES KIRAN offers hassle-free financial solutions to encourage MSMEs to adopt solar energy best practices and achieve their sustainability goals while freeing up funds for their business requirements.

While solar is emerged as a viable solution for MSMEs to cut power bills, experts say that the small businesses are often not interested in installing any new infrastructure that can dent their regular cash flow.

Small Industries Development Bank of India (SIDBI), a bank dedicated to the financial needs of small businesses, offers 100% loans for rooftop solar installations, which can help MSMEs save on substantial power costs, Abhishek Kumar, DGM, SIDBI, said at Mercom India’s C&I Clean Energy Meet in Noida.

Last year December, industry experts at Mercom India’s Commercial and Industrial (C&I) Clean Energy Meet highlighted the challenges in creating awareness among micro and small businesses – typically with a turnover of about ₹50 million ($605,102) annually — which are traditionally focused on their core businesses.