Rooftop Solar Finance Schemes

A simple way to enhance your savings while pledging for a greener environment is to go for Rooftop Solar. Rooftop Solar Finance Schemes are now available to make it easy and affordable.

Solar rooftop projects are worthwhile even with external financing. It is noteworthy that even @15% rate of interest, the return on investment (ROI) is impressive because of the substantial savings that use of solar energy brings PLUS interest earned from savings for 25 years.

SmartEco now has tie-ups and MOUs signed with nationalized banks and private Non-Banking Finance Companies (NBFCs) for financing exclusively green energy projects. Loans up to Rs. 2 Cr are available with or without collateral for businesses, schools, and hospitals in particular.

An indicative return on investment (ROI) number for solar projects financed thru a 5-years loan is as below, for quick reference.

Comparing monthly savings from using solar power against monthly EMI shows that it makes a good business case despite bank finance.

In other words, you only pay to bank rather than CESCOM for 5 years and own RTS for lifetime.

If partial finance is availed OR better interest rates are offered by your bank, then the ROI may look even better due to lesser interest burden.

Some standard terms from banks and NBFCs.

Eligible Solar Projects : Residential and Commercial
Collateral Security : Nil Upto Rs.10 lakh. Above Rs.10 lakh – 25% of loan amount for banks. NFDCs may offer with NO collaterals also.
Limit of loan : Maximum upto Rs.50.00 lakh from Banks, Upto Rs.2 Cr from NFBCs.
Rate of interest : Floating 10.75%– 14% range.
Repayment period : Maximum 5 – 10 years, varies from bank to NFBCs.

Documents needed by the banks (may vary from bank to NFBCs)

KYC documents of individual/firm/company/promoters.
For salaried person, salary slip for 3 months/bank statement for last 3 months/ITR or Form-16 of latest one year.
For businessmen, 3 years’ profit & loss & balance sheet/ITR copies of last 3 years/ Latest 12 months bank statement.

SmartEco value-added services also include liaison with Banks and NFBCs for facilitating project finance for our customers’ green energy initiatives.

Why RTS projects worth exploring even with external finance ?

Consider a sample 50KW RTS project financing. Finance is available for 80% of project cost. You need to bring in only 20% of capital as initial investment. Here is an indicative cost-benefit analysis made for a 50KW project funded by bank loan with interest rate of 10.75% (by Banks) and @14% (by NBFC).

Comparing ‘Monthly savings’made from using solar power with ‘Monthly EMI’ amount shows that it makes a good business case despite loan finance. You have surplus savings.
‘Excess Savings’ after EMI can be used to pay monthly fixed demand charges.

EMI Payment Schedule and Benefits Explained

Indicative EMI payment schedule for a 5-years loan availed for 80% of cost for the above project.

Comparing monthly savingsfrom captive consumption of solar power (instead of grid power @prevailing CESCOM tariff) with monthly EMI amount shows that it provides surplus savings to the investor to offset fixed demand charges. In other words, customers pay to bank rather than CESCOM only for 5 years and enjoy free electricity for lifetime.
Loan amount assumed is 80% of initial CapEx. If partial loan is opted for, the ROI would look better due to lesser interest burden.
With better CRISIL score, loans available with better interest rates. Hence less burden of interest and better ROI.

SmartEco is associated with banks and NFBCs like www.aerem.co, www.welfund.com and www.ugrocapital.com to facilitate loans exclusively for solar projects that include loans upto Rs.2 Cr with/without collaterals at interest rates ranging from 10.75% – 15%.

Our value-added services include helping customers for liaison with Banks and NFBCs on financing their green energy initiatives.

Details can be obtained on request.

Get Ready to Save the Environment and your Energy Bills !!

Get in touch with us and we will be very happy to study your requirement and come up with cost effective Energy saving solutions, that are both environment friendly and budget conscious.

“ VISIT US TO KNOW MORE ABOUT OUR MANY MORE CUSTOMER STORIES AND SEE FOR YOURSELF THE GREEN ENERGY INITIATIVES AND LIFETIME SAVINGS ACHIEVED. ”

We at SmartEco take great care to see that you have a wonderful experience with us and work together to have a great piece of rooftop solar power system. Come visit our experience center to get a better idea.