June 13, 2024

Solar Power Financing in India SBI and Orb Energy Partnership

Solar power financing in India has given a big boost through a sublicensing agreement with State Bank of India which is India’s largest lender and market leader in India.

Orb Energy Solar Solutions has announced that they will be partnering with the SBI on financing the solar power projects. This will further accelerate the quick boom we see in solar power projects with better opportunities for the solar power projects finance which is about to get bigger and better.

New Partnership Aims to Enhance Financing Options for Solar Power Projects

The SBI’s flagship scheme for the mass adoption of solar energy is its Surya Shakti Solar Finance Scheme, under which Orb Energy is an approved vendor. This loan scheme enables SBI’s residential, commercial and industrial customers to install rooftop solar systems by providing solar loans.

This follows a greater strategy for the democratization of financing in the Indian solar sector.

For these commercial and industrial customers, SBI will offer loans of up to Rs 10 crores at a minimum of 20 per cent down payment, with extended tenures available. Residential customers can get loans of up to Rs 10 lakhs for rooftop solar systems.

These generous financing terms will help to sharply lower the barrier to entering the solar power market.

Rooftop Solar systems affect

Fast scaling up of rooftop solar systems would not have been possible without the influence of Finance After this partnership, the country gets nearer to fulfilling the government’s vision of having 100 GW of rooftop solar power by 2030.

Orb Energy-SBI partnership will certainly also catalyse higher solar funding in India and can play an important role towards meeting India’s promised commitment towards higher renewable power capacity and lower carbon emission.

The State Bank of India is a pioneer in fueling the growth of the renewable industry in India by collaborating with Orb Energy, the nation’s premier solar solutions provider. SBI plays a crucial role in embracing the solar revolution and aiding India’s mission towards a green and sustainable future.

This partnership will probably benefit the customers more than anyone else. The ease of availing for loans will make the solar power systems available to more people and the customers stand to gain in the long term because they will save on electricity bills in the long term which makes it a profitable investment.

The customers will contribute to environmental conservation because they will move towards using non-renewable energy sources and contribute to ecofriendly habits.

A Pioneer in Solar Solutions

Orb Energy, founded in 2006 in Princeton, New Jersey, by Damian Miller and NP Ramesh, based in Bangalore, with its first branch in, Kumta has now grown to 100 branches throughout Karnataka.

As of April 2024, Orb Energy provided more than 166,000 solar home systems in India for a total capacity of 288 megawatts and, in cooperation with several banks, is extending loans to small and medium businesses to utilize the technology without any collateral.

For its part, in 2017, Orb Energy raised a $15 million (INR 95 crores) investment from The Netherlands Development Finance Company (FMO), The US Government’s Overseas Private Investment Corporation (OPIC), and The German Investment Corporation (DEG), while in 2019 Shell bought a 20 per cent share in the company.

Orb also attracted capital from Bamboo Capital Partners (Luxembourg), Rianta Capital (Switzerland) and Pamiga SA (Luxembourg). The company expanded its regional presence into Africa in 2014, forming a subsidiary in Kenya to replicate the Indian business model and working with local banks to deliver residential and commercial solar loans.

Impact on the Solar Industry

When Orb Energy collaborates with the State Bank of India to make it easy for solar power projects to access financing, they are making a difference to solar power. Until recently, the costs of setting up solar power infrastructure have been a deterrent. This gap in financing is being removed, stimulating a market for solar energy.

Orb Energy’s aim is to install 100 MW every year, which will lead to escalated production of solar panels and subsequently, reduced costs due to the economies of scale. Solar energy will in turn become more and more affordable to us.

Further, the solar expansion will curb greenhouse gas emissions, helping India fulfil its Paris Agreement commitments and reducing fossil-fuel dependence.

It will also improve India’s energy security and resilience, since solar is abundantly available, thereby maximizing flexibility and reducing vulnerability. Despite these benefits, financial considerations might be the ones that yield first.

The surge of jobs in the solar sector, which the International Renewable Energy Agency (IRENA) said could swell to more than 18 million people globally by 2050 (compared with 3.4 million as of 2020), will create economic opportunity. And the tripling of workers by 2050 might be the most intriguing aspect of all.

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