There is a need to innovate and pay attention to micro, small and medium enterprises (MSMEs), SMEs, and residential society consumers to activate the next leg of growth in the rooftop solar market.
A rooftop solar installation is a proven investment that leads to substantial savings on electricity spends. However, financing rooftop solar remains difficult for many businesses. If we are to see explosive growth in the rooftop segment, financing must be made more accessible and uncomplicated.
Multiple lines of credit are extended by State Bank of India (SBI), Punjab National Bank (PNB), and Indian Renewable Energy Development Agency Ltd (IREDA) at attractive interest rates. However, those lines are time-consuming to process and difficult to access for smaller developers and capex installations.
Non-banking financial companies (NBFCs) present in the space have higher interest rates, making the project less attractive. Other financial institutions are not well equipped to assess solar systems and hence warrant additional guarantees apart from the solar system itself.