TPSSL And Union Bank Renew Partnership To Boost Rooftop Solar Adoption This renewed three-year agreement includes both residential and C&I segments compared to the earlier one which focused only on C&I segment and resulted in the financing of approx. INR 165 crore for the segment.
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Tata Power Solar Systems Limited (TPSSL), a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL) on Tuesday announced the renewal and expansion of its partnership with Union Bank of India (UBI) to offer financing solutions for Residential customers, in-line with the Government's PM Surya Ghar Muft Bijli Yojana as well as for Commercial and Industrial (C&I) customers.
With loan limits extended up to INR 15 lakh for residential and INR 16 crore for C&I customers, the renewed scheme plans to provide financing up to 80 per cent and 85 per cent for the respective categories.
Notably, both the categories will have access to collateral-free financing options, making the transition to solar energy more accessible. The loan tenure has also been extended up to 10 years, allowing households and businesses ample time for repayment.
This renewed three-year agreement includes both residential and C&I segments compared to the earlier one which focused only on C&I segment and resulted in the financing of approx. INR 165 crore for the segment.
Deepesh Nanda, CEO & Managing Director, Tata Power Renewable Energy Limited said, "We are glad to announce the renewal of our association with Union Bank of India by including residential consumers in our solar financing scheme. We believe that the access to easy financing will mainstream the roof-top solar adoption among the residential segment in the country and replicate the success of the C&I segment as witnessed in our first phase of association."
The initiative is well aligned with the recently launched government scheme PM-Surya Ghar Muft Bijli Yojana, aiming to improve accessibility and affordability for a wider audience, thereby making a significant contribution to the widespread adoption of solar solutions.
"Union Bank of India is proud to be at the forefront of supporting green initiatives. Our extended partnership with Tata Power Solar Systems reflects our dedication to providing innovative financial solutions for both commercial and industrial as well as residential customers, reinforcing our commitment to a sustainable future," Pravin Sharma, CGM, MSME, Union Bank of India said.
PM-Surya Ghar Muft Bijli Yojana
The central scheme aims to provide free electricity to one crore households in India, who opt to install roof top solar electricity unit. The households will be able to get 300 units of electricity free every month. It was approved by the Union Cabinet on 29 February 2024, with an outlay of INR 75,021 crore.
The scheme provides for a subsidy of 60 per cent of the solar unit cost for systems up to 2 kW capacity and 40 per cent of additional system cost for systems between 2 to 3 kW capacity. The subsidy has been capped at 3 kW capacity. At current benchmark prices, this will mean INR 30,000 subsidy for 1 kW system, INR 60,000 for 2 kW systems and INR 78,000 for 3 kW systems or higher.
