Tata Power unit partners with Indian Bank for rooftop solar scheme, shares up

Tata Power Solar Systems, a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), has formed a strategic partnership with Indian Bank to boost the adoption of solar rooftops among residential consumers.

According to an exchange filing, the company said that the collaboration will facilitate financing solutions under the Pradhan Mantri Surya Ghar Muft Bijli Yojana scheme for installing setups up to 3 kilowatt (kW) and as well as extend support for installations ranging from 3kW to 10kW under the regular scheme.

Under the PM Surya Ghar Muft Bijli Yojana initiative, customers can get loans up to ₹2 lakh at an annual interest rate of 7%.

Homeowners can easily begin their solar journey with a margin money requirement of 10% and collateral-free financing. The tenure of repayment can also be extended up to ten years.

The Tata Power Solar Systems and Indian Bank will also provide financing solutions to installations exceeding 3 kW up to 10 kW. Eligible applications can get up to ₹6 lakh loan, with 20% margin money and interest rates ranging from 8.4% to 10.8%.

Deepesh Nanda, CEO and Managing Director of TPREL, said, "This collaboration marks a significant step forward, offering tailored financing solutions to empower homeowners while seamlessly aligning with government initiatives like the PM Surya Ghar: Muft Bijli Yojana, aimed at promoting rooftop solar adoption".

Shares of Tata Power were trading at ₹429.9, reflecting a gain of 0.4%, on the NSE at 1:52 pm.

What is PM Surya Ghar Muft Bijli Yojana?

PM Surya Ghar Muft Bijli Yojana provides up to ₹78,000 to install rooftop solar systems and offers free electricity for up to 300 units to one crore households.

The scheme allows households to apply for collateral-free, low-interest loan products of around 7% for setting up residential rooftop solar systems up to 3 kW.