Connect with us

Hi, what are you looking for?

CleanTechnica

Clean Power

Indian Companies Launch Interest-Free Loans For Solar Power Products

India Rural Solar Power

Indian private sector companies are warming up to the idea of rural electrification floated by Prime Minister Narendra Modi. The Indian government has promised 100% electrification of the country by 2019, and solar power would play a critical role in the achievement of this target.

One of the largest manufacturers of solar power and heating products in India, Tata Power Solar, has joined hands with Bajaj Finance to launch an interest-free loan program to help consumers get access to small-scale solar products. Consumers will get interest-free loans on products manufactured by Tata Solar Power that include solar powered CFLs, LED lights, solar water heaters, and solar panels for rooftop installation.

All three products hold immense potential in the rural markets where the power supply is either intermittent or absent altogether. Solar water heaters would find great application in urban areas as well. Several government buildings, hotels and hospitals have installed solar water heaters and many state governments are now considering mandatory use of such systems in all public buildings.

The financing scheme may increase uptake of solar products among otherwise hesitant consumers. While rooftop feed-in tariff schemes have been launched in many states, residential and commercial consumers have not responded positively to them, mainly due to lack of information and the requirement of high upfront investment.

We have ensured that the offer is simple and without any hidden cost. There are a number of people who are hesitant to invest in solar due to the initial upfront cost. We are sure that this offer, with its strong financial incentive, will help people find our products very affordable”, said Gagan Pal, Vice President – Products, Tata Power Solar.

Bajaj Finance would provide instant processing of loans for equipment less than Rs 250,000 ($4,150). The consumers would be required to make a small initial down payment, and the balance amount can be paid through monthly installments (EMI) over 7-10 months.

While off-grid lighting solutions would be attractive for rural consumers, the Dynamo solar power pack would be useful for urban consumers. Residential consumers with smaller roofs can install these systems that are available in the capacity range of 100 to 1,000 W. If feed-in tariff policy is available, consumers can produce revenue through the sale of electricity, which could go towards their EMI repayments.

Image credit: Tata Power Solar

 
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon.
 
Sign up for our free daily newsletter to never miss a story.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New Podcast: Lyft's 100% Electrification Target, Autonomy, Charging

Written By

Mridul currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.

Comments

You May Also Like

Clean Power

One of India’s leading solar power generation companies — Acme Solar Holdings — has announced plans to enter the green hydrogen business. According to...

Clean Power

The Southern Indian state of Andhra Pradesh auctioned 6.4 gigawatts of solar power capacity under a recent tender. The high response to the tender...

Clean Power

With a target to reduce dependence on imported solar cells and modules, the Indian government has announced an incentive program for solar cell and...

Clean Power

A recent attempt by one of India’s power distribution utilities has reignited fears about contract renegotiations among renewable energy project developers. A power distribution...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.