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Reserve Bank of India

India: Solar Thermal Gains from Priority Sector Lending

Submitted by Baerbel Epp on May 19, 2015
The Reserve Bank of India (RBI) has revised priority sector lending norms, according priority sector lending status to renewable energy. Regulation Priority Sector Lending – Targets and Classifications published on 23 April 2015 mentions renewable energies as one of the priority sectors for bank loan schemes (see the attached document), meaning Indian banks will have to set aside a certain share of their total advances for renewable technologies. According to article 7, the loan limit for individual households will be Indian Rupee (INR) 1 million (around EUR 13,000). Market insiders are convinced that solar thermal technology will profit the most from it, as there has not yet been a financing scheme for purchasing solar water heaters or solar concentrator cooking systems. 
 

India: Commercial Banks Give Priority to Solar Water Heater Loans

Submitted by Baerbel Epp on October 6, 2013

Solar water heaters have been made a priority in several loan programmes of well-known banks in India. For example, Bengaluru-based Canara Bank has granted more than 25,000 loans for individual solar water heaters so far and has given out loans worth INR 60 million in the solar heating and cooling sector. The Bank of Maharashtra has seen more than 15,000 borrowers over the last two years and has financed solar thermal systems worth INR 7.5 million. According to the bank’s Assistant General Manager, R Harikumar, business has been picking up since in July 2012, the Reserve Bank of India (RBI) included solar water heaters in the list of priority sectors for loans disbursed through commercial banks (see Article 6.6 of the guidelines).
Photo: Malaviya Solar Energy Consultancy

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