Tata Power RE and Bank of Baroda sign MOU to finance Residential Customers under PM Surya Ghar Yojana

Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited and a leader in India’s renewable energy sector, and Bank of Baroda, one of India’s leading public sector banks have signed a Memorandum of Understanding (MoU) for the financing of residential rooftop solar power systems.

The MoU will facilitate financing options for residential customers under the Pradhan Mantri Surya Ghar Yojana (PMSGY). The collaboration will leverage the wide branch network and financing capabilities of the Bank of Baroda and the market leadership and dealer network of Tata Power Renewable Energy, enabling seamless sourcing and loan processing for customers.

This strategic partnership is set to boost the adoption of rooftop solar systems across the country by providing affordable and accessible financing, thereby supporting India’s transition to renewable energy.

By providing access to affordable, hassle-free financing options, Bank of Baroda and Tata Power Renewable Energy will enable Indian households to adopt sustainable energy solutions and contribute to a cleaner, greener future.

Under the MoU, applicants can avail loan amounts up to Rs 6 lakh at an attractive interest rate starting at 7% p.a., with both fixed and floating rate of interest options available.

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Under the PM Surya Ghar Yojana, customers installing residential rooftop solar systems with capacities of up to 3 kW can avail of loans up to Rs 2 lakh with no income documentation required. The scheme requires only a 10% margin contribution and offers an attractive interest rate of 7% p.a.

The loans are collateral-free and come with a flexible repayment tenure of up to 10 years, making solar installations affordable for households. For larger installations ranging from above 3 kW and up to 10 kW, customers can avail of loans of up to Rs 6 lakh under the regular scheme. These loans require a margin money contribution of 20%.

Bank of Baroda’s Home Loan customers will enjoy special concessional interest rates ranging from 9.15% to 11% p.a. For non-home Loan customers, interest rates will range from 10.15% to 12% p.a. The loans are collateral-free, with a maximum repayment tenure of up to 10 years.

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Shri Lalit Tyagi, Executive Director, Bank of Baroda said, "India's renewable energy capacity has crossed 200 GW, with solar energy accounting for almost 100 GW. This significant growth is driven by robust policy support, enhanced competitiveness, and rising investor confidence. At Bank of Baroda, we are strongly committed to expand our engagement in the renewable energy sector, in line with the government’s vision to maximise power generation through sustainable sources. We are pleased to further strengthen our partnership with Tata Power Renewable, a key leader in India’s renewable energy landscape."

TPREL, recognised as India’s No. 1 solar rooftop company, leads the market with over 100,000 satisfied customers. The total renewables capacity of TPREL reached 10.9 GW (PPA capacity is 8.9 GW) including 5.5 GW projects under various stages of implementation and its operational capacity is 5.4 GW, which includes 4.4 GW solar and 1 GW wind.

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