Solar panels have gained a lot of popularity because they are eco-friendly and save money. While installing a solar panel does save you money in the long run, there is a high upfront cost. The Government of India has been providing many incentives and schemes to reduce the cost of solar installation. Therefore, with government schemes and loans, you can install a solar panel to access free electricity in the future. But which bank is suitable for a loan for a solar power plant?
We have created the following list of 10 banks that offer solar panel loans for residential and commercial projects. In addition to the following banks, you can also opt for solar financing companies like Sunora Solar, which provides a low-interest loan for solar projects without any collateral.
Let’s explore the top banks offering a loan for solar rooftop for home, commercial, and industrial projects! Please check official bank websites for detailed information on the loan for solar panels.
1.Union Solar by Union Bank
https://www.unionbankofindia.co.in/en/Details/union-solar
Union Bank offers term loans to businesses of all sizes to adopt green energy to save the Earth and their electricity bill. Any business in the Indian jurisdiction can apply for Union Solar. Union Solar offers commercial loans for ground-mounted and rooftop solar systems.
Loan criteria:
- Amounts range from INR 10 lakhs to INR 16 crores.
- A commercial project can install solar panels with a minimum capacity of 10-20 kW and a maximum of 4 MW.
- Return within 10 years, including the moratorium period of not more than 6 months.
- No additional collateral is needed for a loan upto INR 8 Crore. However, for the amount above that
2.UCO Suryodaya Loan by UCO Bank
https://www.ucobank.com/uco-suryodaya-loan
UCO Bank offers a loan for solar rooftop for home for individuals aged between 21 to 75 years old. The UCO Suryodaya Loan caters to customers who want to install a grid rooftop solar connection.
Loan criteria:
- Loan for solar panels with a capacity upto or above 3 KW
- The loan amount range is a maximum of 2 Lakhs for upto 3KW and a maximum of 6 Lakhs for above 3KW.
- Repayment within 10 years, including a 6-month moratorium period
- Subsidy available: INR 30000 for 1KW, INR 60000 for 2KW, and INR 78000 for 3KW and above.
3.Bank of Baroda’s Financing Solar Projects
Bank of Baroda is offering solar panel financing for MSME businesses and mid and large corporations under their Financing Solar Projects. The loan is applicable for grid-connected rooftop and ground-mounted solar projects.
Loan criteria:
- Open for income-generating MSME businesses across India
- The loan amount ranges from a minimum of INR 10 Lakhs to a maximum of INR 30 Crore
- Return the loan in 10 years with a maximum 18-month moratorium period from the first disbursement or 6 months after DCCO
- The age limit for proprietor or proprietor firm is 25-65 and 21-65 for the Individual Guarantor
4.Surya Shakti – Solar Finance by SBI
https://sbi.co.in/web/business/sme/sme-loans/surya-shakti-solar-finance
SBI offers solar financing to SMEs and business enterprises to install rooftop or ground-mounted grid-connected solar projects. They follow a centralized processing system, and the loan gets sanctioned by the Surya Shakti Cell (SSC), Mumbai. The loan amount is a maximum of INR 10 Crores and must be returned in 10 years, including the initial moratorium period.
5.Solar Plant Loan by GSC Bank
https://gscbank.co.in/loans/solar-plant-loan/
The Gujarat State Co-operative Bank Ltd. (scheduled apex bank) offers solar plant loans for domestic and commercial projects. For domestic solar projects, they offer a loan of a maximum of INR 10 Lakh with a 7-year term on fixed or floating interest rates. For commercial projects, they offer a loan of upto INR 15 Crore for 7-year terms with the same interest rate options.
6.Financing Of Rooftop Solar Power Systems by PNB
https://www.pnbindia.in/SCHEME-FOR-FINANCING-OF-ROOFTOP-SOLAR-POWER-SYSTEMS.html
Punjab National Bank (PNB) offers a loan for solar rooftops for a home with a maximum capacity of 10 kW. They specialize in residential solar projects in India.
Loan Criteria:
- The loan amount ranges from INR 50K to INR 70K per kW
- Married or unmarried individuals can apply solely or jointly
- The maximum age for a loan for solar power is 75 years
- The maximum return period is 10 years
7.PM Surya Ghar – BOI Star Rooftop Solar Panel Finance Loan by Bank of India
https://bankofindia.co.in/personal-loan/star-rooftop-solar-panel-finance-loan
Bank of India (BOI) offers a loan for solar projects to individuals and housing societies. The loan amount ranges from INR 6 lakhs for individuals and INR 10 lakhs for housing projects. The return period for the loan is 120 months (10 years). The borrower should be a maximum of 70 years old when the loan is supposed to be returned.
8.PM Surya Ghar Muft Bijli Yojana by Central Bank of India
https://www.centralbankofindia.co.in/en/Roof-Top-Solar-Loan-Scheme
The Central Bank of India offers a loan as per the PM Surya Ghar Muft Bijli Yojana with subsidy benefits. The borrower with a CIBIL score of 680 or above must return the loan within 120 months.
9.Mahabank Rooftop Solar Panel Loan Scheme by Bank of Maharashtra
https://bankofmaharashtra.in/mahabank-rooftop-solar-panel-loan
Bank of Maharashtra offers a residential loan for solar projects with 3kW capacity and projects between 3kW and 10kW capacity. Central subsidy scheme application.
Loan criteria:
- The loan amount for solar projects with upto 3kW capacity ranges from INR 10K to 2 lakhs, and for projects above 3kW ranges from INR 10K to 10 Lakhs
- The minimum age to apply for a loan is 21, and the maximum is 70 years, including the return period
- The return period is 10 years, including a 6-month moratorium period
10.Pre-approved Green Loan Scheme to Housing Societies/ Associations and Trusts for Solar Installation by Federal Bank
Federal Bank offers solar roof loans to housing societies and trusts. The term loans cover INR 100 Lakh that must be returned in 85 months. The borrower doesn’t need collateral for a loan amount upto INR 50 Lakh.
Conclusion
Installing solar panels has become easier than ever. With government subsidies and lucrative bank loans, you can set up rooftop and ground-mount solar panels for residential, commercial, and industrial projects. We have created a list of 10 banks offering loan for solar power projects. You can also choose Sunora Solar’s solar financing service to access easy and low-interest loans for any solar project. Contact us to know more!
FAQ
What documents do I need to get a solar panel loan?
For solar panel loan application approval, you’ll be required to provide valid identity and address proofs, income statements, property ownership documents, solar panel plan approvals, and a quotation from a solar panel vendor.
Who is eligible for the PM Surya Ghar Muft Bijli Yojana?
Indians who have a home with an open rooftop and a valid electric connection can enjoy the benefits of the PM Surya Ghar Muft Bijli Yohana. Additionally, the applicant must not have applied for any other subsidy.
Which is the best bank for a solar panel loan?
The best bank for your solar project depends on the project type, capacity, and eligibility criteria. Banks such as SBI, Union Bank, UCO Bank, Federal Bank, and more have been a trusted source of residential and commercial projects.
