Financing no more a hurdle for solar project

In 2021, 100% of the financing for new energy projects in India went to the Renewables sector. This is a considerable increase compared to 2020, when renewable energy loans accounted for 74%according to the fifth edition of Coal Vs Renewables Financial Analysis by Climate Trends and Centre for Financial Accountability (CFA).
This shows funding has eased up for solar project in recent times. It becomes pretty clear again in the webinar organized by RSA on 15, Dec, 2022, where nearly two dozen financial institutions participated. Interestingly, most of the lenders were open to give finance without collateral. In the webinar, prominent banks like SIDBI, Union Bank of India, Canara Bank and Important NBFCs Ecofy, Credit Fair and Electronica Finance talked about their schemes for lending to Solar Projects.
RSA President Sunil Bansal said, ‘’ Earlier, banks were hesitating for financing domestic, commercial and industrial Solar Project. But now the scenario has changed. Banks and NBFCs are coming forward for financing Solar Projects.’’
To attract customers, Banks are offering collateral free loans on very good interest rate of 7% and onwards. This is a game changer and will boost solar installations to multi fold. This will help domestic electricity users as well as corporate user in large scale.