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Bangladesh Announces Incentive for Rooftop Solar-Plus–Storage Projects

Month in a Minute: Top Headlines from the Indian Renewable Sector in August 2026

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					</table>Access to finance is becoming less of a barrier for commercial and industrial (C&amp;I) consumers looking to adopt rooftop solar and other renewable energy solutions, as banks expand financing options tailored to different borrower categories.
Rising grid electricity tariffs are also strengthening the economics of rooftop solar. For commercial consumers, in particular, electricity can account for a significant share of operating expenses. Reducing grid power consumption by opting for solar can lower operating costs and improve profitability, according to T Aravind Rao, Deputy General Manager at IDBI Bank.
“Financing options are available for individuals, housing societies, farmers, micro, small and medium enterprises (MSMEs), and large companies seeking to install solar projects.”
However, the availability of financing does not automatically make every project bankable. Project viability, appropriate system sizing, the borrower’s credit profile, and repayment capacity remain central to lenders’ assessments.
Businesses should install solar capacity aligned with their electricity requirements rather than oversizing projects. A system substantially larger than the consumer&#8217;s requirements can weaken the project&#8217;s financial viability and make financing more difficult.
“Business units should go for a system size which is suitable for their requirements. Not less, not more. That would help them get better financing options and faster,” Rao said.
Credit Rating Determines Borrowing Cost
At IDBI, interest rates for such loans can range from 8.5% to 12.5%, depending primarily on the borrower’s credit rating, Rao said.
Lenders assess several factors when determining a borrower’s credit profile, including management quality, financial strength, promoter capital, liabilities, operating costs, the company&#8217;s products and markets, and business cycles. A stronger credit profile can lead to lower borrowing costs and better access to larger loans.
Credit history also plays an important role in the initial screening of loan proposals. Banks examine credit information reports, repayment capacity, and past repayment behavior before proceeding with an application.
Beyond credit history, lenders evaluate whether the business generates sufficient cash flows to service the proposed debt. Promoter investment, retained earnings, outstanding liabilities, unsecured borrowings, market prospects, and growth potential can all influence the assessment. For businesses led by older promoters, lenders may also consider whether an adequate succession plan is in place.
The financing decision, therefore, extends beyond the economics of the solar installation itself. The financial strength of the underlying business can influence the amount a company can borrow, the interest rate it receives, and the collateral required.
Loan Tenure and Collateral
Solar loans for MSMEs generally have repayment periods of five to seven years, although the tenure can vary depending on the borrower category, project economics, and the business’s income-generation cycle.
Collateral requirements can also vary based on the borrower’s financial profile and existing relationship with the lender.
For existing IDBI-financed businesses, securities already provided to the bank can generally be extended to solar loans without requiring additional collateral. For new businesses requiring broader capital expenditure and working capital financing, collateral requirements can be around 40% to 50%.
However, Rao said financially strong borrowers and viable projects may qualify for financing without additional collateral, including through applicable credit guarantee mechanisms. For smaller MSMEs seeking rooftop solar financing as part of their broader funding requirements, the bank generally does not seek additional collateral.
Loan processing times also depend on the financing amount and the level at which approvals are required. Smaller proposals can be processed relatively quickly, while larger loans requiring ratings, corporate office approvals, or consideration by multiple committees can take longer.
For an MSME project involving expenditure of around ₹50 million (~$522,482), financing could typically be processed within two to three weeks after the required documentation is submitted.
Solar Financing Expected to Grow
Rao expects solar financing to increase significantly over the coming years as electricity consumption and costs rise.
Higher electricity costs strengthen the case for consumers to generate more of their power on-site. For businesses, the initial capital expenditure associated with rooftop solar can be recovered over time through savings on electricity bills, improving the ability of projects to support debt repayment.
Residential electricity consumption is increasing partly due to the adoption of electric vehicles, which can push consumers into higher tariff slabs and strengthen the case for rooftop solar. MSMEs are similarly recognizing solar&#8217;s potential to reduce electricity expenditure and operating costs.
For C&amp;I consumers, this relationship between electricity savings and financing is particularly important. Lower power costs can improve operating margins, while solar savings can help offset loan repayments. Once the debt is repaid, a larger share of the electricity savings flows directly to the business.
This makes the economics of the underlying project critical. A correctly sized system can improve savings and repayment visibility, while an oversized installation can increase capital requirements without generating a corresponding improvement in financial returns.
Avoiding Over-Borrowing
One of the most common mistakes businesses make is borrowing more than they require, Rao said.
Excess borrowing increases interest and repayment obligations without necessarily generating corresponding income. For rooftop solar, the same principle applies to both borrowing and system sizing. Installing capacity substantially beyond a company&#8217;s requirements can increase capital costs and debt obligations without delivering proportionate savings.
He emphasized the importance of financial discipline, advising businesses to align financing with their actual investment requirements.
Banks are also prepared to finance investments; companies may need to meet sustainability-related requirements in their export markets, Rao said. Businesses should first assess the investments required to comply with regulations in their target markets and then approach lenders with clearly defined financing requirements.
The growing availability of green financing means access to capital need not be the primary obstacle to rooftop solar adoption for financially viable businesses. However, obtaining financing on favorable terms ultimately depends on matching project capacity and borrowing requirements with electricity consumption, cash flows, and the borrower’s ability to repay.
These views on MSME financing and green loans were shared at Mercom India’s C&amp;I Clean Energy Meet held in Hyderabad during a session titled ‘<a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-hyderabad/agenda" target="_blank" rel="noopener">Attractive Financing Options: Easy and Affordable Green Loans</a>.’
The next Mercom India C&amp;I Clean Energy Meet will be <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-vizag" target="_blank" rel="noopener">held</a> in Vizag on September 25, 2026.

Competitive Green Loans Lower Financing Barrier for C&I Rooftop Solar

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					</table>IREDA Global Green Energy Finance IFSC (IGGEFIL), a wholly owned subsidiary of the government-owned lender, Indian Renewable Energy Development Agency (<a href="https://www.ireda.in/home" target="_blank" rel="noopener">IREDA</a>), has approved its first international green energy loan, marking the formal start of its overseas financing operations.
IGGEFIL approved a loan of $22.5 million to Swarna Solar for the development of a 100 MW solar project in the Serenje District of Zambia’s Central Province.
The project represents IGGEFIL’s first deployment of capital from Gujarat International Finance Tec-City (GIFT City) into an international renewable energy asset and signals IREDA’s expansion beyond domestic markets to support clean energy development globally.
IREDA recorded its highest-ever annual loan approvals and disbursements in the financial year (FY) 2024-25, largely driven by renewable energy projects. Total loan approvals of ₹474.53 billion (~$7.27 billion), reflecting a year-on-year growth of 27.04%, while loan disbursements reached ₹301.6 billion (~$4.62 billion), up 20.24% year on year.
As of December 2025, IREDA’s outstanding loan book stood at ₹879.75 billion (~$10.6 billion), marking a 28% year-over-year increase from ₹689.6 billion (~$8.3 billion), driven by strong demand for renewable energy financing. Solar energy accounted for the largest share of the portfolio at 25.5%. Loans to state utilities account for 24.5%, while wind energy accounts for 15.4%.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/Screenshot-2026-01-19-131932.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-89241 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/Screenshot-2026-01-19-131932.png" alt="IREDA 2025 Loan" width="735" height="565" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/Screenshot-2026-01-19-131932.png 735w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/Screenshot-2026-01-19-131932-300x231.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/Screenshot-2026-01-19-131932-650x500.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/Screenshot-2026-01-19-131932-624x480.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/Screenshot-2026-01-19-131932-600x461.png 600w" sizes="auto, (max-width: 735px) 100vw, 735px" /></a>
IREDA continued to play a central role in financing solar energy during the year, supporting utility-scale, distributed, and rooftop solar projects. Under the PM-KUSUM scheme alone, the company sanctioned ₹30.32 billion (~$464 million) and disbursed ₹7.61 billion (~$117 million) in FY25 across Components A, B, and C.
In addition to financing, IREDA owns and operates a 50 MW solar photovoltaic power project.
Recently, IREDA <a href="https://www.mercomindia.com/higher-loan-disbursements-take-iredas-revenue-up-25-in-q3-fy-2026" target="_blank" rel="noopener">reported</a> revenue from operations of ₹21.3 billion (~$236.2 million) in the third quarter of the financial year 2026, a 25% year-over-year rise from ₹16.98 billion (~$188.3 million).
In September 2025, IREDA <a href="https://www.mercomindia.com/ireda-approves-%E2%82%B911-34-billion-loan-to-insolation-green-energy" target="_blank" rel="noopener">approved</a> a loan of ₹11.34 billion (~$129 million) to Insolation Green Energy, a wholly owned subsidiary of INA Solar, to finance its 4.5 GW solar cell manufacturing facility in Madhya Pradesh.

IREDA Subsidiary Approves First Overseas Solar Project Loan

Here are some noteworthy cleantech announcements of the day from around the world:
Voltalia, a global renewable energy company, <a href="https://www.voltalia.com/uploads/08_Not%C3%ADcias/Press_Releases/2020/20201117_IPP_Voltalia_PPA_City_of_London_EN.pdf" target="_blank" rel="noopener noreferrer">said</a> it would develop a 49.9 MW solar facility to supply green electricity to the City of London, United Kingdom. The governing body of the Square Mile signed a 15-year power purchase agreement (PPA) to buy all the electricity produced by a new-build 95,000 panel-solar project in Dorset, United Kingdom. The 49.9 MW project will generate enough clean energy that can power around 15,000 homes and will provide over half the City Corporation&#8217;s electricity.
On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) <a href="https://arena.gov.au/news/small-wind-turbines-offer-a-big-solution-for-telecommunications/" target="_blank" rel="noopener noreferrer">announced</a> $341,990 in funding to Diffuse Energy to demonstrate the effectiveness of its innovative micro wind turbine technology for use on off-grid telecommunication towers and broader remote applications. As part of the $922,307 project, the Newcastle-based startup will install its small wind turbines at ten off-grid telecommunications towers across various locations in Australia. SEUZ and bp have <a href="https://www.suez.com/en/news/press-releases/reduction-co2-emissions-by-2030-suez-and-bp-sign-memorandum-net-zero-teesside-uk-first-decarbonised-industrial-hub" target="_blank" rel="noopener noreferrer">signed</a> a Memorandum of Understanding (MoU) to explore the feasibility of the United Kingdom&#8217;s first carbon capture and storage project from waste-to-energy. The Net Zero Teesside Carbon Capture, Utilization, and Storage (CCUS) project is expected to capture up to 10 million tons of carbon dioxide emission, the equivalent to the annual energy use of 3 million UK households. The agreement paves the way for SUEZ to develop a solution to capture carbon dioxide emissions from one of four waste-to-energy facilities it operates in the Teesside area of the UK. Once captured, the carbon dioxide will be supplied to the bp led Net Zero Teesside CCUS project, to be transported and stored in a geological storage facility beneath the North Sea.
Sunrun, a US-based renewable energy company, has <a href="https://investors.sunrun.com/news-events/press-releases/detail/221/sunrun-signs-virtual-power-plant-agreement-with-southern" target="_blank" rel="noopener noreferrer">contracted</a> with Southern California Edison (SCE), a U.S.-based electric utility company, to increase grid resilience and lower power costs. SCE Will send signals to Sunrun during high demand events such as extreme heat waves when the energy grid is strained. In response, Sunrun will dispatch energy from its solar-powered battery systems installed in the SCE territory, providing 5 MW of energy capacity to support the overall energy system. The same solar-powered batteries will also provide reliable backup power to these households if the power goes out.

Daily News Wrap-Up: Voltalia to Develop a 49.9 MW Solar Project to Supply Power to London

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