Banks to Integrate Housing Loans with Rooftop Solar to Promote Solar Energy Usage

Banks are set to combine housing loans with rooftop solar installations, aligning with government initiatives aimed at amplifying solar energy usage across the nation. Sources familiar with the matter disclosed that lenders are gearing up to refine and bolster these schemes.

Moreover, financial institutions are contemplating the development of specialized products to bolster the government’s PM Surya Ghar Muft Bijli Yojana. In a recent meeting involving the finance ministry, the ministry of new and renewable energy, and banks, it was decided that banks would integrate with the National Portal for Rooftop Solar to furnish real-time data access to consumers and stakeholders.

A government official expressed optimism, anticipating that approximately 90% of residents would opt for rooftop solar through the Muft Bijli Yojana. The integration of these schemes with housing loans at subsidized rates is expected to significantly expand their outreach. Banks have also committed to conducting awareness campaigns to promote the widespread adoption of rooftop solar panels.

Prime Minister Narendra Modi unveiled the new rooftop solar scheme, aiming to illuminate 10 million households and provide up to 300 units of free electricity. The scheme entails an investment exceeding 75,000 crore.

A senior bank executive highlighted that financial institutions are already extending loans for solar rooftops at competitive rates as part of their Environmental, Social, and Governance (ESG) lending framework. He emphasized the intention to intensify engagement with small and medium enterprises to encourage the adoption of solar rooftops on their premises.