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Writer's pictureSajal Aggarwal

Solar power plant loans for MSMEs

Updated: Jul 16, 2021

Small Industrial Development Bank of India (SIDBI) has announced an attractive scheme to help MSME (Micro Small & Medium Enterprises) reduce their power bills. This low interest rate term load can be availed by any eligible unit for establishing solar power plants from capacities 25 kWp to 500 kWp. The interest rate is as low as 9.1% with an upper capping of 10.2%.Apart from lower interest rates this is a fast track single application , single window clearance loan. A moratarium of 3 to 6 months can also be availed with a maximum tenure 5 years including the moratarium. 100% of the costs of the equipment and the installtion can be availed under this Scheme.





 

If this loan is availed , the solar power plant installed at the unit can be installed without any capital expenditure ever. Even the EMI is paid by the electricity savings per month and after 5 years , the plant is all yours. Let us see how. Let us assume a unit in gurgaon where a solar plant of 100 kWp is being planned. The monthly production of this plant will be 11500 units per month. Considering per unit cost be Rs.8 we can immediately calculate that this solar plant will have a potential to save Rs.92000 in one month or Rs. 1104000 in the first year. Solar power plants face Light induced degradation and the production drops by 1% each year. Yearly EMI of the SIDBI Solar plant term loan , if financed 100% will be 1008000 @9.5% interest rate.


Let us put these figures in a table for clear understanding.

In nutshell if you own a commercial / industrial unit and are a MSME you can with Zero investment get the solar power plant installed which will yield very good paybacks for years to come.


Eligibility Criterial

  • Vintage: New Customer – 4 years, Existing Customer – 2 years

  • 2 years cash profits

  • Satisfactory repayment track record

  • For New Customer: Minimum IACR of 0.5% (if no CGTMSE cover)

  • Proposed Solar rooftop capacity not to exceed connected load

  • Only On-site projects

Key Attractions

  • 100% finance

  • Zero promoter’s contribution

  • FD of 15% to 25% of Loan (interest bearing)

  • Attractive Interest rates

  • Credit Guarantee cover available

  • Simple Loan documentation

  • Direct payment to Supplier

  • Helping MSMEs to reduce their Power bill

  • Across the segment coverage with 25 KW to 500 KW plants (indicative)

  • Loan Amount: ₹10 lakh to ₹250 lakh

  • Quick sanction and fast disbursement

To download application form click here

To see real generation of solar powr plants in Gurgaon click here

To see our Solar plant installation process click here

To calculate your solar requirement according to your monthly electricity bill click here







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