In a significant move to accelerate India’s transition towards renewable energy, Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited, has signed a Memorandum of Understanding (MoU) with Bank of Baroda. The partnership aims to facilitate affordable financing options for residential rooftop solar power systems under the Pradhan Mantri Surya Ghar Yojana (PMSGY).
This collaboration is poised to make clean energy more accessible to Indian households. By leveraging Bank of Baroda’s extensive branch network and robust financing capabilities alongside TPREL’s market leadership and dealer network, the MoU will streamline the process of sourcing and processing loans for residential solar installations. The initiative aligns with India’s renewable energy goals, promoting sustainable energy adoption at the grassroots level.
Residential customers can now avail loans up to ₹6 lakh at competitive interest rates starting from 7% per annum, with both fixed and floating rate options. Under the PMSGY scheme, households installing solar systems up to 3 kW can secure loans up to ₹2 lakh without income documentation, requiring just a 10% margin contribution. These loans are collateral-free and offer flexible repayment terms of up to 10 years, making solar energy solutions financially viable for many families.
For larger installations between 3 kW and 10 kW, loans up to ₹6 lakh are available with a 20% margin contribution. Bank of Baroda’s existing home loan customers will benefit from concessional interest rates ranging from 9.15% to 11% per annum, while rates for other customers will range from 10.15% to 12% per annum. These loans also come with a maximum repayment tenure of 10 years and require no collateral.
The Pradhan Mantri Surya Ghar Yojana offers government subsidies that significantly reduce the upfront cost of solar installations. Subsidies cover up to 60% of the benchmark cost for systems up to 2 kW and 40% for systems between 2 kW and 3 kW. Installations exceeding 3 kW receive fixed subsidies for the first 3 kW, with additional capacity supported as per the scheme guidelines. This subsidy structure, combined with the new financing options, is expected to drive widespread adoption of rooftop solar, helping households lower their electricity bills while contributing to environmental sustainability.
Deepesh Nanda, CEO & Managing Director of TPREL, emphasized the importance of this partnership, stating, “This strategic collaboration with Bank of Baroda marks a significant step forward in our mission to make clean energy solutions accessible to every household in India. By offering affordable and convenient financing options, we are enabling residential customers to embrace rooftop solar technology with ease. This initiative not only empowers individuals to reduce their energy costs but also contributes meaningfully to the nation’s renewable energy goals and efforts to combat climate change.”
Echoing this sentiment, Lalit Tyagi, Executive Director of Bank of Baroda, remarked, “India’s renewable energy capacity has crossed 200 GW, with solar energy accounting for almost 100 GW. This significant growth is driven by robust policy support, enhanced competitiveness, and rising investor confidence. At Bank of Baroda, we are strongly committed to expand our engagement in the renewable energy sector, in line with the government’s vision to maximise power generation through sustainable sources.”
TPREL, recognized as India’s leading rooftop solar company, boasts over 100,000 satisfied customers and a total renewables capacity of 10.9 GW, including 5.4 GW in operational projects. Bank of Baroda, with its rich history dating back to 1908, continues to support India’s economic growth through innovative financial solutions and a vast network of over 70,000 touchpoints globally.
This partnership is set to play a pivotal role in making rooftop solar installations more affordable and accessible, propelling India closer to its clean energy aspirations.