Introduction to Solar Power Financing
Solar power financing provides tailored loan solutions for individuals, businesses, and farmers looking to install solar panels or develop renewable energy projects. Loanpao offers solar power loans in 2025 with competitive rates, quick disbursals, and support for government-backed schemes, promoting sustainable energy adoption for residential, commercial, and agricultural use.
Key Features of Solar Power Loans
Loanpao’s solar power loans are designed to support green energy initiatives:
- Loan Amount: From ₹1 lakh to ₹1 crore, based on project scale and eligibility.
- Repayment Tenure: Flexible terms from 1 to 10 years, aligned with energy savings.
- Interest Rates: Starting at 8.5% p.a. for secured loans, 10.5% p.a. for unsecured loans.
- Collateral Options: Available as secured (lower rates) or unsecured loans.
- Quick Disbursal: Funds released within 5–10 working days post-verification.
- Purpose Flexibility: Use for solar panel installation, inverters, batteries, or solar farm development.
Types of Solar Power Loans
Loanpao offers loans for various solar energy projects:
| Loan Type | Purpose | Typical Loan Amount |
|---|---|---|
| Residential Solar Loan | Rooftop solar panels, inverters, home battery systems | ₹1 lakh–₹10 lakh |
| Commercial Solar Loan | Solar systems for offices, factories, or commercial buildings | ₹5 lakh–₹50 lakh |
| Agricultural Solar Loan | Solar pumps, irrigation systems, farm-based solar setups | ₹2 lakh–₹20 lakh |
| Solar Farm Loan | Large-scale solar power plants or grid-connected projects | ₹50 lakh–₹1 crore |
Eligibility Criteria
To qualify for a solar power loan with Loanpao, meet these criteria:
- Age: 21–65 years for individuals; businesses must be operational for at least 1 year.
- Credit Score: Minimum CIBIL score of 600 for unsecured loans; lower for secured loans.
- Income/Business Turnover: Minimum annual income of ₹2 lakh or business turnover of ₹10 lakh.
- Nationality: Indian resident or registered entity in India.
- Project Documentation: Solar project proposal or vendor quotation (preferred).
Documents Required
Prepare these documents for a smooth application process:
- Identity Proof: Aadhaar, PAN, passport, or voter ID.
- Address Proof: Utility bill, rental agreement, or Aadhaar.
- Income Proof: Last 6 months’ bank statements, ITR for 1–2 years, or business financials.
- Project Documents: Solar vendor quotation, project report, or installation plan.
- Collateral Documents (if applicable): Property papers or asset details for secured loans.
- Others: Recent photographs, loan application form.
Benefits of Solar Power Financing
Why choose Loanpao for solar financing:
- Green Energy Support: Promote sustainability with affordable financing.
- Flexible Options: Secured and unsecured loans tailored to your needs.
- Fast Processing: Approvals within 5–10 days for urgent installations.
- Government Incentives: Access subsidies under schemes like PM Suryaghar Yojana.
- Cost Savings: Reduce electricity bills with solar energy investments.
- Transparent Terms: Clear loan conditions with no hidden charges.
How to Apply for Solar Power Loans
Loanpao simplifies the loan application process:
- Online Application: Complete the loan application form on Loanpao’s website.
- Document Submission: Upload required documents, including project details, online.
- Verification: Loanpao’s team verifies your details and project feasibility.
- Approval & Disbursal: Receive approval within 5–10 days, with funds disbursed to your account or vendor.
Start your application at Loanpao Apply Now.
Government Schemes Supporting Solar Power Financing
Loanpao partners with government initiatives to enhance access to solar financing:
- PM Suryaghar Yojana: Subsidies up to ₹78,000 for residential rooftop solar installations (1–3 kW systems).
- KUSUM Scheme: Loans and subsidies for solar pumps and agricultural solar projects, up to ₹10 lakh.
- MNRE Subsidies: Central Financial Assistance (CFA) up to 30% for solar projects in rural areas.
- CGTMSE: Credit guarantees for collateral-free loans up to ₹2 crore for MSME solar businesses.
Loanpao facilitates applications under these schemes to maximize funding benefits.
Comparison: Secured vs. Unsecured Solar Power Loans
Understand the differences to choose the right loan type:
| Feature | Secured Loans | Unsecured Loans |
|---|---|---|
| Collateral Requirement | Requires land, property, or assets | No collateral needed |
| Interest Rates | Lower (8.5%–11% p.a.) | Higher (10.5%–15% p.a.) |
| Loan Amount | Up to ₹1 crore | Up to ₹25 lakh |
| Risk | Risk of asset seizure on default | No asset risk |
| Processing Time | 7–14 days | 5–10 days |
Frequently Asked Questions
Solar power loans are financial products offered by Loanpao to fund the installation of solar panels, inverters, batteries, or large-scale solar projects for residential, commercial, or agricultural use.
Individuals, farmers, or businesses with a minimum annual income of ₹2 lakh or turnover of ₹10 lakh, a CIBIL score of 600, and a valid solar project proposal can apply.
Loanpao offers solar power loans up to ₹1 crore, depending on the project scale and applicant’s financial profile.
Approvals typically take 5–10 working days, subject to complete document submission and project verification.
Yes, Loanpao supports schemes like PM Suryaghar Yojana (up to ₹78,000 subsidy), KUSUM (up to ₹10 lakh for solar pumps), MNRE subsidies (up to 30%), and CGTMSE (up to ₹2 crore collateral-free).
Yes, Loanpao allows prepayment with minimal or no charges after a lock-in period of 6–12 months, depending on the loan agreement.
Defaulting may lead to penalties, a negative impact on your credit score, or asset seizure (for secured loans). Loanpao offers restructuring options to help avoid defaults.