PSBs to Accept Solar Rooftop Cost as Part of Home Loan Proposals

Solar Potential of Cities to Be Estimated By TERI's Web-GIS
  • Public sector banks (PSBs) are to accept rooftop solar installation cost as part of home loan or home improvement proposals of individual customers.
  • The Union Finance Ministry is reported to have advised the PSBs to encourage home loan/ home improvement loan seekers to install rooftop solar units and include the cost of such equipment in their loan proposals.
  • The proposals may include vis-a-vis non-solar lighting, wiring and other such fittings.
  • Rooftop solar plants, which will produce clean electricity, have become economically viable at about Rs.7 per kWh without any subsidy.
  • The government is providing a subsidy of 15 per cent which is revised from 30 per cent earlier on these plants to the beneficiaries.
  • PSBs have been advised to canvass solar PVs (photovoltaic) to all its existing home loan borrowers by organising programmes in association with dealers and companies,
  • The scheme has been approved by the Ministry of New and Renewable Energy.
  • Eight PSBs : Bank of India, Syndicate Bank, State Bank of India, Dena Bank, Central Bank of India, Punjab National Bank, Allahabad Bank and Indian Overseas Bank ¬†have so far issued necessary instructions to extend loans for rooftop solar schemes.
  • Indira Padmini, General Manager of IOB, told¬†that the bank had already started implementing the scheme by extending loans under IOB Surya.
  • Indira Padmini also said: We are propagating installation of rooftop solar schemes under the Surya programme. Besides individual customers, we are extending loans up to Rs.10 lakh for solar rooftop projects of institutions.
  • According to solar consulting firm: Bridge to India, Tata Power Solar and Su-Kam Power Systems are the only national players in the residential market.