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