PM Surya Ghar Yojana: Tata Power and Bank of Baroda Make Solar Energy More Accessible

The strategic partnership will facilitate hassle-free financing for residential rooftop solar installations, empowering Indian households to switch to clean energy under the PM Surya Ghar Muft Bijli Yojana.

India’s transition to clean energy has received a major push with Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, joining hands with Bank of Baroda to provide accessible and affordable financing for residential rooftop solar installations under the Pradhan Mantri Surya Ghar Yojana (PMSGY).
This collaboration is set to accelerate India’s clean energy revolution by simplifying the financing process for households keen to adopt solar power. With Bank of Baroda’s vast financial network and Tata Power Renewable Energy’s market leadership, this partnership will bridge the gap between financing and adoption, making solar power a viable choice for millions of Indian families.
Making Solar Power Accessible and Affordable
The agreement ensures that homeowners looking to install rooftop solar panels will now have access to low-interest financing options. Customers can avail loans up to ₹6 lakh at an interest rate starting at 7% per annum, with both fixed and floating rate options available. The collateral-free loans come with a flexible repayment tenure of up to 10 years, making solar energy more financially viable for residential consumers.
Under the PM Surya Ghar Yojana, customers installing rooftop solar systems up to 3 kW can apply for loans up to ₹2 lakh without requiring income documentation. The scheme features only a 10% margin contribution and an interest rate of 7% per annum. For larger installations between 3 kW and 10 kW, customers can secure loans of up to ₹6 lakh under a regular financing scheme, with 20% margin contribution.

Government Subsidies and Cost Benefits
Residential consumers installing solar panels under PM Surya Ghar Yojana are also eligible for subsidies, further reducing installation costs. These include:

• Up to 60% subsidy for solar systems up to 2 kW
  40% subsidy for solar systems between 2 kW and 3 kW
  Fixed subsidies for the first 3 kW capacity, with additional support as per scheme guidelines

This initiative significantly reduces the upfront cost burden on households, encouraging wider adoption of rooftop solar power.

Industry Leaders Speak on the Collaboration
Deepesh Nanda, CEO & Managing Director, Tata Power Renewable Energy, stated, “This partnership with Bank of Baroda is a major milestone in making clean energy solutions accessible to every Indian household. Affordable financing options will enable families to embrace rooftop solar technology with ease. This is a step forward in achieving India’s renewable energy goals while allowing consumers to take control of their energy costs.”
Lalit Tyagi, Executive Director, Bank of Baroda, added, “India’s solar energy capacity has already crossed 100 GW, showing significant progress. Our collaboration with Tata Power Renewable Energy aligns with the government’s vision to maximize power generation from sustainable sources. By providing seamless financing solutions, we are making solar energy more accessible and affordable for millions of Indians.”

Tata Power Renewable Energy: Leading India’s Solar Revolution
Tata Power Renewable Energy Limited (TPREL) is India’s No. 1 rooftop solar provider, with over 100,000 satisfied customers. The company’s total renewable energy capacity stands at 10.9 GW, with 5.4 GW already operational. Its continued focus on solar innovation and accessibility has positioned it as a leader in India’s green energy transition.
Paving the Way for a Greener Future
As India’s demand for renewable energy grows, the Tata Power Renewable Energy and Bank of Baroda partnership will play a crucial role in accelerating rooftop solar adoption. By offering affordable loans, subsidies, and seamless financing, the initiative empowers households to embrace clean energy, reduce electricity costs, and contribute to India’s ambitious sustainability targets.

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