New Delhi, Feb 6 (UNI) Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power and a public sector lender Bank of Baroda, have signed a Memorandum of Understanding (MoU) for financing of residential rooftop solar power systems.

The MoU will facilitate financing options for residential customers under the Pradhan Mantri Surya Ghar Yojana (PMSGY). The collaboration will leverage on the wide branch network and financing capabilities of Bank of Baroda and the dealer network of Tata Power Renewable Energy, enabling seamless sourcing and loan processing for customers, a joint press statement said.

This strategic partnership is set to boost the adoption of rooftop solar systems across the country by providing affordable and accessible financing, thereby supporting India’s transition to renewable energy.

By providing access to affordable, hassle-free financing options, Bank of Baroda and Tata Power Renewable Energy will enable Indian households to adopt sustainable energy solutions and contribute to a cleaner, greener future. Under the MoU, applicants can avail loan amounts up to Rs 6 lakh at an attractive interest rate starting at 7 percent annually, with both fixed and floating rate of interest options available.

Under the PM Surya Ghar Yojana, customers installing residential rooftop solar systems with capacities of up to 3 kW can avail loans up to Rs 2 lakh with no income documentation required. The scheme requires only a 10 percent margin contribution and offers an attractive interest rate of 7 percent p.a. The loans are collateral-free and come with a flexible repayment tenure of up to 10 years, making solar installations affordable for households.

For larger installations ranging from above 3 kW and up to 10 kW, customers can avail loans of up to Rs 6 lakh under the regular scheme. These loans require a margin money contribution of 20 percent. Bank of Baroda’s Home Loan customers will enjoy special concessional interest rates ranging from 9.15 percent to 11 percent p.a. For non-Home Loan customers, interest rates will range from 10.15 percent to 12 percent p.a. The loans are collateral-free with a maximum repayment tenure of up to 10 years.

Under the Pradhan Mantri Surya Ghar Yojana, residential consumers installing rooftop solar systems are eligible for government subsidies, significantly reducing the upfront cost of installation. For solar systems up to 2 kW, customers can avail a subsidy covering up to 60 percent of the benchmark cost, while for systems between 2 kW and 3 kW, the subsidy covers 40 percent of the benchmark cost.

Installations above 3 kW receive a fixed subsidy for the first 3 kW, with additional capacity receiving support as per scheme guidelines. These subsidies, combined with affordable financing options, make rooftop solar more accessible, helping households lower electricity bills while contributing to India's clean energy transition.

Mr. Deepesh Nanda, CEO & Managing Director, TPREL said, “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. Together, we are fostering a sustainable future, one home at a time.”

Lalit Tyagi, Executive Director, Bank of Baroda said, "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.

We are pleased to further strengthen our partnership with Tata Power Renewable, a key leader in India’s renewable energy landscape."

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