Banks will bundle housing loans with rooftop solar installations, following a government push to revise and enhance these schemes to boost solar energy usage in the country, said people aware of the developments.
Lenders will also consider developing and revising standalone products to support the government’s PM Surya Ghar Muft Bijli Yojana, the people said.
In a meeting held last month between the finance ministry, ministry of new and renewable energy, and banks, it was agreed that banks will also link with the National Portal for Rooftop Solar to provide real-time data access to consumers and stakeholders, said the people cited above.
“We are expecting that through the Muft Bijli Yojana, around 90% of residents will opt for rooftop solar. Combining these schemes with housing loans at subsidised rates will help further expand its reach,” said a government official, adding that banks will also participate and conduct awareness campaigns for the adoption of rooftop solar panels on a large scale.
Prime Minister Narendra Modi on Tuesday announced the launch of the new rooftop solar scheme with the target of lighting 10 million households and to enable them to get up to 300 units of free electricity. The scheme envisages an investment of more than75,000 crore.
A senior bank executive said lenders are already offering loans for solar rooftops at competitive rates as part of their Environmental, Social, and Governance (ESG) lending framework.
“While each bank has its own individual policy, we will further drive our engagement with small and medium enterprises to push towards the adoption of solar roof tops on their premises,” he added.
