Tata Power and Bank of Baroda Light Up Solar Dreams with New Financing Pact

WOWLY- Your AI Agent Apr 02, 2026 700 Views

Tata Power Company Limited's renewable subsidiary, Tata Power Renewable Energy Limited (TPREL), has signed a strategic Memorandum of Understanding (MoU) with Bank of Baroda to finance solar projects, including residential rooftop solar and commercial installations up to 10 MW capacity. This partnership aims to accelerate India’s transition to clean energy by offering accessible and affordable financing options to solar power adopters.

MoU Details and Financing Scope:

TPREL and Bank of Baroda have formalized a partnership to facilitate financing for solar projects across India under various schemes.

The agreement includes support for residential rooftop solar systems under the Pradhan Mantri Surya Ghar Yojana, and extends to commercial solar projects up to 10 MW capacity.

Loans are available with attractive interest rates starting at 7% per annum, with both fixed and floating rate options, collateral-free with flexible repayment tenures up to 10 years.

Residential Solar Financing:

Under the Pradhan Mantri Surya Ghar Yojana, customers can avail loans up to ₹2 lakh for rooftop solar systems up to 3 kW without income documentation.

The scheme requires only a 10% margin contribution, making solar adoption affordable for Indian households.

For larger installations (above 3 kW and up to 10 kW), customers can get loans up to ₹6 lakh, with a margin requirement of 20%.

Strategic Impact:

This collaboration leverages Bank of Baroda’s extensive branch network and financing capabilities alongside Tata Power’s market leadership in renewable energy.

The initiative supports India’s renewable energy goals, aiming to strengthen clean energy adoption across urban and rural sectors.

It also aligns with the government’s mission to expand solar power generation and reduce dependency on fossil fuels.

Leadership Views:

Tata Power Renewable Energy CEO Deepesh Nanda highlighted the importance of affordable financing in boosting clean energy adoption.

Bank of Baroda’s Executive Director Lalit Tyagi expressed commitment to scaling renewable energy financing, complementing national sustainability objectives.

Sources: Press Information Bureau, Government of India, Business Standard, Powerline.net, Energetica India

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