The Government of India has set an ambitious target of 175 GW of renewable energy capacity by 2022 out of which 40 GW is to come through rooftop solar PV. Despite various governments’ initiatives, the growth of the rooftop solar segment has been quite sluggish owning to many challenges such as financial, regulatory, etc.
To give a fillip to this segment and make rooftop solar financing easier, SBI has availed a line of credit from World Bank, specifically for financing the rooftop solar projects across the country. A Customized financial product has been developed by SBI and benchmark parameters for the purpose drawn up. The benchmark parameters and terms & conditions to avail of SBI solar rooftop loan are as follows:
Eligibility Criteria
Sole Proprietorship, Partnership Firm/ including LLP and Company/ Special Purpose Vehicle (SPV)/NBFC Borrower or their parent company/ sponsor should have:
(i) At least 1 year experience/ past track record in power sector, and
(ii) CRA rating of SB-10 & better and/or ECR of Investment grade.
[Note: ECR is mandatory for exposure of Rs.10 crore and above].
Loan Amount
Consumers can avail of the loan amount of up to 75% of the project cost.
Loan Repayment Period
➠ Door to Door tenor up to 15 years.
Type of Facility
i) Term Loan
ii) Need based Working Capital against receivables
iii) Need based NFB (LC/BG) facility
Branches Identified
All Corporate Account Group Branches (Project debt component above Rs 500 cr.), Commercial Clients Group Branches (Project debt component above Rs 50 cr and up to Rs 500 cr.), and SME Branches (loan up to Rs 50 cr).
Pricing
➣ 6 months Marginal Cost of Funds Based Lending Rate (MCLR) plus spread in the range of 120 bps to 190 bps based on risk rating of the customer.
➣ Loans extended to MSMEs will be linked to Banks’s External Benchmark Rate (EBR), as per Bank’s extant guidelines plus spread in the range of 120 bps to 190 bps based on risk rating of the customer
Moratorium
Up to 12 months post Date of Commencement of Commercial Operations (DCCO).
Collateral Security
The Bank may seek additional security (Collateral) if FACR falls below 1.25.
Primary Security
➠ Exclusive first charge on all fixed assets, movable assets, and current assets, lease hold rights, cash flows and project related accounts & rights therein , current as well as future relating to the project ( T&C applicable).
➠ Assignment of Project documents.
Guarantee
➠ In case of Sole Proprietorship /Partnership Firm/ Company, personal guarantee of proprietor/ partners/directors.
➠ In case of Special Purpose Vehicles (SPVs)/Associates/ Subsidiaries, Corporate Guarantee of sponsor can be further explored.
Statutory Clearance & PPA
The required project agreements (including PPA) /clearances/ approvals (as applicable) should be in place, before disbursement of 1st tranche for each loan under the overall sanctioned credit facility.
Important Documents
➠ ID or address proof of applicant and guarantor like- Voter ID, PAN number, Aadhaar number etc.
➠ Income tax returns wealth tax returns for the last 3 financial years of the applicant and guarantor.
➠ The annual report of the business of the applicant and its associates for the last three years, containing an audited balance sheet and trading and profit or loss accounts.
As a tropical country, India has a huge potential to be the leader in rooftop solar space. Being the largest lender in the country, SBI is committed to financing renewable energy projects to support the Government of India in realizing its renewable energy targets. With the SBI loan for solar rooftop, SBI aims at developing the sluggish rooftop solar market.
