PSBs to accept solar rooftop cost as part of home loan proposals

Eight banks have so far initiated action

A view of solar rooftop photo voltaic power panels on the Collector Office in Guntur.-T. Vijaya Kumar

Public sector banks (PSBs) are to accept rooftop solar installation cost as part of home loan or home improvement proposals of individual customers.

The Union Finance Ministry is reported to have advised the PSBs to encourage home loan/ home improvement loan seekers to install rooftop solar units and include the cost of such equipment in their loan proposals. The proposals may include non-solar lighting, wiring and other such fittings, among others.

Rooftop solar plants, which will produce clean electricity, have become economically viable at about Rs.7 per kWh without any subsidy. The government is providing a subsidy of 15 per cent (revised from 30 per cent earlier) on these plants to the beneficiaries.

PSBs have been advised to canvass solar PVs (photovoltaic) to all its existing home loan borrowers by organising programmes in association with dealers and companies, which have been approved by the Ministry of New and Renewable Energy.

Eight PSBs — Bank of India, Syndicate Bank, State Bank of India, Dena Bank, Central Bank of India, Punjab National Bank, Allahabad Bank and Indian Overseas Bank — have so far issued necessary instructions to extend loans for rooftop solar schemes.

Indira Padmini, General Manager of IOB, told

The Hindu that the bank had already started implementing the scheme by extending loans under IOB Surya.

“We are propagating installation of rooftop solar schemes under the Surya programme. Besides individual customers, we are extending loans up to Rs.10 lakh for solar rooftop projects of institutions,” she added.

According to solar consulting firm Bridge to India, Tata Power Solar and Su-Kam Power Systems are the only national players in the residential market. The total installed capacity in residential solar market was 112 MW.