Energy & Power

Renewable

Loans to Buy Solar Energy System
Ep Report

Solar energy has caught the fancy of banks in southern India as an area to enhance their loan portfolio. With the Indian government encouraging banks to offer loans for solar energy systems counting this as priority lending in an effort to popularize renewable energy products, the demand for loans for solar energy products has increased considerably.

Said a Canara Bank official, the demand for its loan scheme called `Can Solar' for solar water heaters has picked up well in the last two years.

"We have provided loan to the tune of Rs 42 crore for about 18,300 units so far," he said. The power saved is equivalent to 6.12 MW, he said. Can Solar was introduced in Karnataka about 11 years ago, and was extended to the rest of the country about two years ago.

Canara Bank also received the `Best Bank For Implementation of Scheme for Solar Water Heating System, 2005-06' award.

Canara Bank was one of the pioneering banks to participate in the Solar Water Heating Programme of the Ministry of New and Renewable Energy.

About 10 public-sector banks, four non-banking financial corporations, two private banks and 10 scheduled co-operative banks participate in this program.

Syndicate Bank, too, has a similar scheme that provides loans for solar water heating systems and solar lighting systems.

"We have a total of 25,590 accounts for these products, to the tune of Rs 56.1 crore," said Mr I. Pardhasarathy, General Manager, Priority Sector Credit Division, Syndicate Bank.

The bank's SyndSolar Jyothi Scheme — for solar lighting systems — was introduced "to assist people, particularly in rural and semi-urban areas, who face the problem of irregular supply of electricity to have assured source of power for lighting purposes," he said.

There are five villages — three in Karnataka and two in Uttar Pradesh — where each and every house has solar lighting, he said.