Recognising that upfront investments is one of the biggest barriers, the government encourages NBFCs and banking institutions to create well-structured, affordable funding solutions tailored for renewable energy projects.
Key Highlights
- Higher PSL Lending Limits: Banks can now lend up to ₹35 crore to renewable power generators and ₹10 lakh to households for solar projects.
- Bank/NBFC Support: Banks are increasingly providing well-structured, affordable funding solutions tailored for renewable projects, including priority sector lending benefits for MSMEs adopting solar.
- Collateral-Free Green Loans: Businesses can access loans for solar installations without pledging collateral.
- MSME Support: RBI has doubled the collateral-free loan limit for Micro and Small Enterprises from ₹10 lakh to ₹20 lakh, effective April 1, 2026.
- Interest Rates & Costs: While demand is high, the sector is navigating potential increases in solar module prices (up 10-15% since late 2025) and higher input costs.
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