What is the subsidy for solar farms in India?

You can avail of the following subsidies under the Rooftop Solar Scheme: Up to 2 kW: Rs. 30,000 per kW Additional capacity up to 3 kW: Rs. 18,000 per kW More than 3 kW: Up to Rs. 78,000

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Loan for Solar Business

Loan for Solar Business

Starting a solar business can be a lucrative business idea. With Tata Capital's loan for solar business, you can receive the financial support you need to launch your venture. With competitive interest rates, flexible repayment options, and quick approvals, we make it easier for you to invest in solar technology and infrastructure.

Solar System Loan

India's solar industry is rapidly expanding due to its high electricity demand and ample sunshine. With most areas receiving about 3000 hours of sunshine annually, India has a significant potential for solar energy generation. Projects like those in the Thar desert are producing substantial power, and the Jawahar Lal Nehru national solar mission aims to generate 20000 MW of solar electricity. The government's incentives, including the Sristi scheme, are encouraging investment in solar power, targeting 40 GW by 2022. This growing sector offers various business opportunities, fueled by both government support and the increasing popularity of solar energy.

Are you planning to venture into the solar energy business? At Tata Capital, we understand the potential of the solar industry and offer tailored business loans to support your aspirations. With our hassle-free loan process and flexible EMIs, we make it easier for you to get your solar business off the ground.

Features of Solar Business Loan

Competitive Interest Rates: Enjoy low-interest rates that make financing your solar business more affordable.
Flexible Repayment Options: Choose from short-term to long-term repayment plans that suit your business cash flow.
Quick Approval Process: Enjoy a streamlined approval process to get the funds you need without unnecessary delays.
High Loan Amounts: Get high loan amounts to cover the costs of solar technology, equipment, and infrastructure.
Minimal Documentation: Simplify the application process with minimal documentation requirements.
Customizable Loan Solutions: Tailor your loan to meet the specific needs of your solar business, whether you're starting a new venture or expanding an existing one.

Solar Loan Interest Rates and Charges

When considering a solar business loan, it's important to understand the interest rates and associated charges. These charges vary from lender to lender and depend on several factors like your income, credit history, the lender's policies, etc. Here’s a general breakdown of solar loan interest rates and charges:

Interest rate	7% to 10%
Processing fee	0.50% to 2.5%
Default in payment	3% per month on overdue amount

*The interest rates and charges are subject to change and vary from lender to lender. For a more accurate value, please visit the official website of your preferred lender.

Eligibility criteria

To secure a solar business loan, you must meet the following eligibility criteria:

Your business must not fall under HUF.
You must obtain all statutory approvals or NOCs from respective authorities.
In the case of individual/proprietary concerns, the minimum CIC score should be 700.
To install a solar unit that connects to the electricity grid, it must have a net metering system.
The money saved on electricity should be enough to cover the monthly payments for the loan.
You can get financing for both onsite and offsite projects.
The solar unit must be installed on the property that you own or lease.
Businesses involved in risky or uncertain financial activities are ineligible for the loan.
If you already have a loan, your account must be up-to-date with payments and not classified as a Special Mention Account (SMA).

How to apply for a Solar Business Loan?

Applying for a business loan with Tata Capital is a seamless experience. Our user-friendly online application process ensures convenience and saves you time. Here's a step-by-step guide to help you through the application process:

Fill out the online application form with your personal and business details.
Provide the necessary documents, such as identity proof, address proof, business financials, and relevant licenses.
Submit the application and wait for our team to review and process it.
Upon approval, the loan amount will be disbursed to your account.

Our dedicated customer support team is always available to assist you at every step of the process. We strive to make the loan application and approval process as smooth as possible, so you can focus on growing your solar business with confidence.

Remember, Tata Capital is committed to supporting your entrepreneurial journey in the solar energy sector. With our business loans, you can turn your solar business dreams into reality.

For more information on our business loan options and to check your eligibility, visit our website.

Key pointers before starting your solar business

Market research: Conduct thorough market research to understand the demand for solar products and services in your target area. Identify potential customers, competitors, and market trends.
Business plan: Create a detailed business plan outlining your business goals, target market, revenue streams, marketing strategies, and financial projections.
Regulatory compliance: Make sure you comply with all local and national regulations regarding solar energy installations.
Financial planning: Calculate your startup costs, including equipment, installation, permits, and operational expenses.
Supplier selection: Select a reliable supplier for solar panels, inverters, and other equipment.

What our customers say about us

Whole process was done very smoothly. Team was very supportive, polite and knowledgeable

ADENIUM PHARMACEUTICALS

Business Loan | 22 Oct, 2025

I'm really happy with all the efforts you guys made to sort out my problems. Thank you

LIMNESH V V N

Business Loan | 16 Oct, 2025

The Tata Capital team guided me very well. All my questions were answered promptly and politely. I am very satisfied with their response and quick action.

SURAJ SANJAY MANE

Business Loan | 12 Sep, 2025

Thank you from the bottom of my heart for the help from Tata Capital. Thank you for your very good service.

SHIV KUMAR .

Business Loan | 26 Aug, 2025

Tata Capital has given me good service for my urgency and helped me. Thank you.

J M NARASIMHAMURTHY

Business Loan | 20 Aug, 2025

Thank you so much for your awesome support. I was in an emergency situation, so I couldn’t attend the calls, but you addressed my problem via mail.

BABEETHA T

Business Loan | 08 Aug, 2025

Nice communication, no delay. Happy to apply for the loan.

ARIVANNAL S

Business Loan | 24 Jul, 2025

Overall satisfied with Tata Capital services. Quick resolution and courteous customer support.

ANWARULLAH NOORULLAH KHAN

Business Loan | 16 Jul, 2025

I am happy to refer Tata always. People will be satisfied and benefit. Always GREAT in all ways, helping poor people.

D KARUNANITHI

Business Loan | 03 Jul, 2025

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Popular FAQs

A solar business can be a profitable business venture. However, the exact profit margins depend on factors like your business idea, supplier costs, location, etc.

To start a solar business, you must understand and comply with all state and national regulations, register your business under the relevant category, select the right location, and manage infrastructural expenses.

To start a solar panel business, you'll need an investment of anywhere around Rs. 5 lakhs.

You can avail of the following subsidies under the Rooftop Solar Scheme:

Up to 2 kW: Rs. 30,000 per kW
Additional capacity up to 3 kW: Rs. 18,000 per kW
More than 3 kW: Up to Rs. 78,000

The income from a solar farm depends on the location and other overhead costs.

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Loan for Solar Business