Tata Power Renewables, IndusInd Bank join hands to offer solar financing for MSEs
Notable because
In September 2024, India recorded 90.8 GW of installed solar capacity. In contrast, CEA’s optimal generation mix report estimates 292 GW of solar capacity needed by 2029–30. The partnership between Tata Power and IndusInd Bank offers collateral-free solar financing to micro and small enterprises (MSEs). The MSME sector as a whole consumes ~25% of India’s industrial electricity demand. Such initiatives can potentially help energy intensive MSEs to switch to greener electricity, while reducing energy procurement costs.
What to look out for in the months ahead
The reduction in minimum contracted demand from 1 MW to 100 kW under the Ministry of Power’s Green Open Access Rules 2022 has created opportunities for medium and small corporates in the open access segment. With such innovative financing solutions, would we see further energy intensive MSEs diversifying through open access models, enabling direct power purchase agreements with solar developers like Tata Power?