Those looking for setting up solar panels on their roofs have reason to celebrate as Union Bank of India has extended its rooftop solar financing scheme to residential customers.
The scheme, launched in association with Tata Power, was initially targeted only at commercial and industrial (C&I) customers. The first phase of the partnership resulted in disbursal of around Rs 165 crore for the commercial and industrial segment.
Under the renewed three-year agreement, residential customers can now avail loans up to ₹ 15 lakh for setting up rooftop solar plants.
The scheme offers collateral-free financing up to 80% of the project cost and comes with a loan tenure of up to 10 years.
The bank said extension of the scheme to the residential segment aligns with the Surya Ghar Muft Bijli Yojana, which aims to promote widespread solar rooftop adoption among households and enhance affordability.
For industrial customers, the scheme offers loans up to ₹ 16 crore, with financing up to 85% of the project cost. The loan tenure and collateral-free options are similar to those offered to residential customers.
The bank has tied up with Tata Power Solar Systems, a wholly-owned subsidiary of Tata Power Renewable Energy Limited, for the scheme.
The company offers a full range of solar rooftop equipment with capacities up to 2 GW in over 275 cities.