According to reports, Solid Solar by Gautam Polymers, India’s largest solar lights manufacturer has signed a memorandum of understanding (MOU) with Bank of India for financing of solar systems through its network of banks across the country.
This MOU would enable bank financing on solid solar home systems and solar power plants through bank of India’s extensive network and popularise the usage in rural and urban areas. The recent Northern Power Grid failure and rising diesel costs has given rise to a growing demand of renewable energy sources as power backup. Easy availability of financing on these systems and quality products will fuel the growth in the market. With almost a quantum leap in the last decade, today’s low maintenance, long lasting solar power systems produce more energy than they consume becoming a perfect answer to growing energy woes.
Shubhra Mohanka, director, Solid Solar said, “The signing up of the financing memorandum is a significant milestone for us. While solar power is the cleanest form of energy, it is also the most expensive, costing four to five times the conventional power. However, the loan available for both residential and commercial customers will significantly reduce the upfront out -of -pocket costs making the benefits of solar energy system a reality. The MOU with Bank of India will provide end user easy financing of solar home systems.”
N.C. Khulbe, general manager, Bank of India: “Bank of India is promoting use of solar energy in rural areas by financing the individuals for purchase of Solar Home Lighting Systems. The solar lights will replace use of kerosene, firewood etc which is harmful for the eyes and lungs of the housewife and other family members. Use of solar energy also reduces the carbon emission from fossil fuels. Bank will make efforts to get the carbon credits, the amount earned from which will be used for furthering the Solar Home Lights financing programme”.
Solid Solar has already tied up with NABARD for financing of its systems through regional rural banks and the collaboration with bank of India will further strengthen company’s presence in various states. As electricity generation through non conventional sources includes high cost, financial aid provided by bank of India will not only promote off grid application of solar energy but also boost sustainable business models.