In the last few decades, solar energy has been one of the major players in the renewable energy sector, offering a sustainable and cost-effective way to meet the world’s ever-growing energy demands.
As a homeowner, you probably have heard of solar panel installations, and like many others interested in “going solar,” you may be wondering how to pay for a solar panel system installation.
In India, solar power adoptions have accelerated rapidly, in many individuals and businesses adopted renewable sources of energy that help them have electricity.
To start with, the key problem is the initial installation cost where the cost has to be initially incurred for building up the Solar panels. Then comes solar financing.
Solar Panel for Home Financing in India
Homeowners in India have several options for Solar Panel Finance Solutions installations solar panel. These options range from loans provided by banks and non-banking financial companies (NBFCs) to innovative schemes offered by solar companies.
Roof Top Solar Loans
One of the most basic yet widely used modes of financing for a solar panel installation is the Rooftop Solar Loans. Most of the banks and NBFCs in India provide loans targeted to solar projects, which are given at attractive interest rates and with flexible terms of repayment so that homeowners don’t worry much about paying back the loans while enjoying their savings in solar energy.
One example is the “Surya Shakti” loan given by the State Bank of India which is specifically designed for the installation of solar panels. They provide up to 75% of the cost of the project and have a repayment term that can extend to 10 years. ICICI and HDFC follow quite a similar plan in disbursing their loan products, which enables many people to enjoy the available benefits of solar power.
Smart Rooftop Solar Finance Schemes
One new idea that seems to be useful in encouraging people to opt for solar energy is the Smart Rooftop Solar Finance Scheme. These are essentially a partnership of solar companies with financial institutions and are planned as hassle-free finance options for the customers.
Examples include Tata Power Solar, which offers finance through a group of banks under which customers can get solar panels installed with zero or low upfront costs. More often than not, the repayment under such schemes results in high savings in terms of electricity bill savings, thus providing a win-win situation for the consumer.
Leasing and PPAs
Under a leasing or PPA, the solar company will install and maintain the solar panels on the customer’s property. The customer pays a monthly fee or reduced rate for the electricity generated. This model avoids the high initial investment requirement and is appealing to many homeowners and businesses.
EMI-Based Finance
Most solar companies and banks have EMI for installation of the solar panels. Customers can pay for their solar systems through EMI for a certain period. Mostly, the money saved on the electricity bill when using solar panels would balance the monthly EMI.
Government Subsidies and Incentives
The Indian government offers several types of subsidies for the adoption of solar energy. For instance, the Ministry of New and Renewable Energy (MNRE) subsidizes rooftop solar systems up to 30% of the benchmark cost for domestic consumers. As a result of these subsidies, the initial investments are highly subsidized, making this source of electricity more accessible to a larger segment of the population.
Rooftop Solar Finance Scheme
Rooftop Solar Finance Schemes are directed to serve household and commercial customers who are planning to set up solar panels on the rooftops of their buildings. Typically, they offer various financing options together with subsidies and incentives as a single comprehensive package for installing solar panels.
Public Sector Initiatives
Public sector banks and institutions have equally been aggressive promulgators of Rooftop Solar Finance Schemes. One such example in India is provided by the loans offered by the Indian Renewable Energy Development Agency (IREDA) under very concessional rates with very flexible repayments that assure their customers would not mind shelling out that little extra for going solar.
Private Sector Involvement
Private sector banks and NBFCs are also very active in offering Rooftop Solar Finance Schemes. Many of these financial institutions offer loan products tailored to the varied needs of customers, including lease agreements and EMI options. They tie up with solar companies to make the whole process of financing and installation of solar panels smooth and customer-friendly.
Conclusion
The use of solar energy in India is on the rise, mainly due to increasing awareness about its environmental and economic benefits. However, it is the high initial cost of solar panel installations which poses a very significant barrier for several potential adopters. Therefore, Solar Panel Finance Solutions, ranging from Rooftop Solar Loans to smart rooftop solar finance schemes and all the rest in solar panel finance, are a means to an end, helping bring solar power within the reach of a greater majority. It saves the day for homes and businesses alike, removing the barrier of initial cost, with the option of financial aid and reaping the long-term benefits of clean, sustainable, and affordable solar energy.
With the Indian government encouraging higher levels of adoption of renewable energy, the Solar Panel Finance Solutions available to consumers and business houses alike will be abundant in number and varied in types. Be you a homeowner trying to lower your electricity bill or a commercial enterprise with green ambitions, searching for one among the available solar finance solutions will help you to switch over to solar power quite effortlessly and without much fuss.
