Indian Bank ties up with Tata Power Solar to boost solar energy adoption

• Indian Bank has entered into a strategic partnership with Tata Power Solar Systems Ltd. (TPSSL) to boost solar energy adoption by providing financial support to residential consumers for installations.
• The collaboration aims to provide financial support under the PM Surya Ghar Muft Bijli Yojana scheme for installations up to 3 KW, and from 3-10 KW under the regular scheme.
• Residential consumers can avail loans up to ₹2 lakh at an annual interest rate of 7%, with a nominal margin money requirement of 10% and collateral-free financing. The repayment tenure is 10 years.
• For installations exceeding 3-10 KW, eligible applicants can avail loans up to ₹6 lakh with a margin money requirement of 20%. Interest rate ranges from 8.4% to 10.8% per annum.
• This initiative is poised to make a profound impact on the widespread adoption of solar solutions.

ABOUT PM SURYA GHAR MUFT BIJLI YOJANA SCHEME

• It aims to provide free electricity to households in India.
• The PM-Surya Ghar Muft Bijli Yojana provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity.
• The scheme envisaged to generate up to 300 units of free electricity every month which would translate to benefits of ₹15,000-18,000 annually for households.
• India had aimed to install 40 GW of rooftop solar by 2022 but has only achieved approximately 12 GW thus far.