Helps you to get Solar Project financing in India?

After completion of your power purchased agreement, feed-in tariff contract (Net Metering Scheme); now you are thinking “I need to get my Solar project Financing in India!”
Here some points which help you to financing solar project:-
• Agreeing to use the debt providers IE(independent engineer ) can simplify the process
• Get all your documents in order
• Missing documentation gives you worry and will take cost time and money, therefore, complete the review. Do it right the first time.
• Save costs by providing all the documentation up front, at one time.
• Use up-to-date documentation because the site visit will end badly if you don’t!

 

The chart below gives you an understanding of the solar project financing options for KW/MW solar plants in India

Solar Project financing in India

In order to obtain financing, an investor can go for solar project financing solutions

 

solar project financing in india rayssol

Here two types of solar project financing in India solutions:-

  1. Domestic solar project financing solution: – As of 2016, Indian banks are lending at interest rates in a range of 11-13%, NBFCs could be lending at slightly higher rates. IREDA (Indian Renewable Energy development Agency) lends at lower rates (10.2%- 11.4%). Domestic loans are usually for a period of 7-10 years, though many Indian banks are now comfortable to lend until 15-year tenures.
  2. International solar project financing solution: – As per data the final interest rate here for loans from international sources usually is between 8-10%, after factoring in all costs, including the cost of hedging for exchange risks. But here the time to process the loan would take a long time when compare with domestic solar project financing solution. It takes around nine months and this could impact the project start time but interest rates are generally lower in the case of foreign financing, which is good so it is necessary to take into consideration the cost of hedging against currency fluctuations. Foreign debt is available for the tenure of 16-18 years.

    IREDA solar project financing terms: –

Here you find out the IREDA (Indian Renewable Energy development Agency) Norms & Schemes-

For more details Click Here

Some other commercial banks and financial institutions actively involved in renewable energy financing are given below:-

ADB//www.adb.org
DEG//www.deginvest.de
DBS//www.dbs.com
ICICI Bank//www.icicibank.com
IDFC//www.idfc.com
IFC//www.ifc.org
IL&FS//www.ilfsindia.com
PFC//www.pfc.gov.in
Proparco//www.proparco.fr
Rabobank//www.rabobank.com
SBI//www.sbi.co.in/
SBI Caps//www.sbicaps.com
Yes Bank//www.yesbank.in

 

What are the documents required to apply for Solar Project Financing ?

  • PPA
  • Feasibility study
  • PC contract
  • Quality and safety standards followed
  • O&M contract
  • Evacuation
  • Contracts for supply of components
  • List of permissions and compliance acquired

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