Tata Power Solar, UBI to Offer Rooftop Solar Financing for MSMEs
Tata Power Solar Systems, a subsidiary of Tata Power Renewable Energy Ltd., on Wednesday announced a partnership with Union Bank of India (UBI) to provide financing to MSMEs for rooftop solar panel installation.
The objective of this collaboration is to improve access to green energy and save on the cost of electricity, thus making MSMEs more profitable.
“The association will be implemented under UBI’s solar scheme called ‘Union Solar’, which was launched on a pan-India level to relieve the MSME’s from the stress of higher power costs and grid exigencies," the company said in a statement.
MSMEs can avail the dual services of Solar EPC by TPSSL, financed through term loan facility by UBI, wherein industries can avail up to ₹ 8 crore of loan amount at best possible interest rates with nil or minimum collateral.
“The scheme also requires minimum down payment of only 20% of project cost thus making it very attractive for the MSME. Solar solutions will help bring a turnaround in MSME sector by reducing their grid dependency and making them independent power producers with greater control over their productivity and output," the company said.
This move is expected to achieve various goals such as enabling ease of doing business for MSMEs, creating a local industry and entrepreneurs who will contribute to the larger economy of the country, and championing ‘Make in India’ initiative, it added.
Collaborations like these, which encourage industries to transition to green energy while driving the country to rapidly adopt green practices, are making sustainable power attainable for local/ rural small-scale industries and to realize the vision of Aatmanirbhar Bharat.
“In the last few years, Indian MSME industry is experiencing a behavioural shift towards green energy solutions. Being a pioneer in the renewable sector, TPREL is happy to be part and leading this transition. We are committed to make TPREL a one-stop solution for the solar rooftop industry, where customers can resolve all their queries, including financing concerns. By joining hands with Union Bank of India, we look forward to making this collaboration a benchmark for the industry to emulate and take India’s green energy success journey to greater heights," said Shivram Bikkina, Chief Rooftop, TPREL.
“We believe, in Tata Power, we have found a natural ally in our efforts to help small businesses improve their access to green energy through the solar solution that is reliable, affordable and self-paying in the long run. Our Union Solar scheme is specifically designed to address the needs of the MSME sector. By addressing the financing challenge, we expect to see an impressive growth in the use of solar power in MSME sector that will also make them more competitive in the domestic and international markets," said C. M. Minocha, Chief General Manager, Union Bank of India.
TPSSL, a subsidiary of Tata Power has been India’s top solar rooftop EPC player for the last eight years. It has a portfolio of more than 10 GWp of ground-mount utility-scale solar projects and over 1.2 GW rooftop and distributed generation projects across the country to date.
TPSSL is also one of the largest solar manufacturers in India, operating a world-class manufacturing unit in Bengaluru, with a production capacity of 1,135 MW of modules and cells.