The State Bank of India (SBI) has partnered with Tata Power Solar Systems to establish a financing agency for commercial and residential solar projects up to 1MW.
The ‘Surya Shakti Cell’ was set up in the country’s financial capital Mumbai and will process all the loan applications for solar projects from across India.
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SBI aims to provide “an end-to-end platform for digital and hassle-free journey to the loan applicants”, while offering competitive rates for solar project financing. The budget for the finance unit was not disclosed.
The agency will also assist applicants in procuring equipment, resolving technical issues and expediting approval processes, Tata Power said in a statement.
“We are delighted to launch the Surya Shakti Cell with an objective to provide a new direction to solar projects financing in India,” said SBI chairman Dinesh Khara. “We are very happy to partner with Tata Power Solar Systems in this initiative, which is in line with the global objectives of the COP26 Agreement in reducing the carbon footprint.”
India has more than 6GW of cumulative installed rooftop solar capacity, according to Mercom India data, with deployment booming in the country last year following a slow down caused by the pandemic.
Meanwhile, the International Energy Agency (IEA) has said India’s solar energy output could match coal-fired power within the next 20 years, but the country’s clean energy sector may need US$1.4 trillion in additional funding to ensure a “sustainable growth path”.
PV Tech Premium has broken down the key mechanisms and avenues available to businesses looking to invest in India’s solar sector.
Also today, India’s government has provided a further Rs19,500 crore (US$2.6 billion) of funding for its PV manufacturing Production Linked Incentive (PLI) scheme, with the country intent on spurring further development of a domestic solar manufacturing base.