Solar business loan

The solar industry is growing within India at a fast pace, propelled by an ever-growing demand for electricity that has made it the fifth-highest in terms of requirement. 53% of the requirement is fulfilled by using coal as a raw material. There is also hydroelectric power.  The ever-growing demand for electricity and the shortfall have made it necessary for generating electricity through solar energy. The high amount of sunshine that India receives as tropical is ideal for the solar energy sector.

Most places in India receive an average of 3000 hours of sunshine in a year and this amounts to 5000 trillion kWh (kilowatt-hours). This high potential of generating solar energy in India has launched great projects. Solar projects in the Thar desert of India are generating 700 to 2100GW of power.  The Jawahar Lal Nehru national solar mission has targeted generating 20000MW of electricity through the solar route.

The government of India has announced several incentives to motivate more and more people to invest in generating solar power. The ministry of new and renewable energy in the central government has announced the Sristi (Sustainable Rooftop Implementation for solar transfiguration will provide incentives for rooftop solar power generating projects. The government has an outlay of Rs 23,450 crores and has a target to generate 40GW (gigawatts) of power by 2022.

Solar power is the conversion of energy from sunlight into electricity by either using photovoltaics (PV) or indirectly by using concentrated solar power. A combination of the increasing popularity of solar power and the incentives announced by the government has made the prospect of starting a solar business a very lucrative business and entrepreneurs are increasingly being drawn to this business opportunity.  The different types of business opportunities include 

  1. solar panel installation
  2. solar product distribution
  3. solar product manufacturing
  4. solar system repair and maintenance
  5. solar product consultancy.

Getting the business started

Manufacturing solar products are capital intensive and a good business plan is required in order to begin the business and there is financing available for entrepreneurs. Having prepared a good and sure-to successful business plan, the next step is to legalize the business. This is done by registering the business. The business can be registered as a business as a sole proprietorship or as a public limited company. A company incorporation certificate will be required. 

The next step is to have an online presence and to market the business. A modern technique is to use the platform of digital marketing. This can be done online with minimum investment.  

The next vital step is to plan the amount of investment into the business. This will decide the amount of loan to be applied for. It is advisable to start on a small initial investment and then expand the business slowly with regular working capital loans after the initial startup loan has been paid up.

Going for the vital Business loan

We offer business startup loans for solar business startups and business expansion. The loan amount varies from Rs 50000 to up to Rs 2 crores.  The basic features and facilities have been tabulated below

Interest for a business loan

1 to 2% per month

Tenure of loan

Up to 36 months

Whether collateral required

Unsecured loans available

Processing and pre-closure charges

None 

Extension facility of loan tenure

Tenure extension for a startup can be extended up to 4 years

The different types of business loans include

  1. Bank overdraft/ line of overdraft facility
  2. Short term loans
  3. Equity funding
  4. Equipment financing
  5. Factory Advances
  6. Trade creditor 
  7. Loans on account receivables

We require the following documents for providing a startup business loan for solar business

  1. Bank statement for a full year
  2. Evidence and documents of business registration
  3. Aadhaar card and PAN card of the proprietor of the business
  4. Sole proprietorship declaration
  5. Memorandum and Article of Association 
  6. Financial statement of the business for the previous 2 years.

The process of applying for our business loan is easy and hassle-free

Business entrepreneurs need to check their eligibility on our website. Once assured of their eligibility and the loan amount they can get, business entrepreneurs can download the business loan app   

The application form is to be filled up and it is preferable that applications leave the loan amount portion blank

Applicants will need to prepare all the documents required for applying for our solar business loan blank. Some of the documents can be uploaded online. Applicants can also carry the application form along with the documents.

We will be happy to welcome applicants for a chat with us so that we can assist and also guide them in the business. 

We shall check and verify their documents and help provide them with the finance suitable for their business. 

Solar Business Loan FAQs:

1. Can a Solar business loan be applied by providing s business address on the rented property?

Yes, there is no problem with a rented business address as long as the vital documents of business are in place.

2. Is any collateral required for a solar business loan?

No collateral is required for a solar business loan.

3. Can a Solar business loan be taken for the supply and distribution of solar panel parts?

Yes, a solar business loan can be provided for different types of solar business that includes the supply and distribution of solar panels.

4. Can solar businesses apply for a government of India subsidy?

Yes, a solar business can apply for subsidy by applying to the India Renewable energy Development agency.

5. What are the criteria for being eligible for a solar business subsidy?

Solar businesses applying for the government subsidy need to manufacture solar cells and meet the minimum production capacity criterion.

6. Can a solar business eligible for a government subsidy also be eligible to apply for a loan?

Yes. A solar business eligible for government subsidy can also be eligible for a solar government business loan.

7. Can a top-up loan be given to an existing solar business loan?

A top-up loan to an existing solar loan can be given if the borrower is able to demonstrate that the business is progressing well.

8. Can a solar business apply for a loan on the basis of unpaid invoices?

Yes. This facility of using invoices of sales is eligible for getting a loan for the solar business.

9. Can a solar business loan be given to an entrepreneur without income proof?

A new entrepreneur may not have regular income and the loan can be given if the applicant can prove and demonstrate the legality and seriousness of the business.

10. Can a solar business loan be given to a partnership firm?

Yes, provided the firm has the requisite papers of being a valid partnership firm.