SBI Surya Shakti Solar Finance

Scheme Introduction: A Brief Overview

Installing a solar power system can help businesses reduce their dependence on conventional electricity and manage long-term energy costs, but the initial project cost can be a major investment. To support businesses in financing such projects, the State Bank of India (SBI) offers Surya Shakti – Solar Finance, a specialised term-loan facility for grid-connected solar rooftop and ground-mounted systems. The facility covers both captive solar projects for self-consumption and eligible other-than-captive projects for selling solar power under long-term Power Purchase Arrangements (PPAs). Eligible borrowers can get loans of up to ₹10 crore for captive projects and up to ₹50 crore for other-than-captive projects, subject to SBI's eligibility and credit assessment.

Surya Shakti – Solar Finance is an SBI banking product, not a Government of India subsidy scheme. It is available mainly to existing and prospective SMEs and business enterprises, while eligible co-operative housing societies can also obtain finance for captive solar projects. Under the other-than-captive variant, SBI also covers eligible Group Captive, Open Access (Third Party) and RESCO projects with long-term PPAs.

The product is offered by State Bank of India (SBI) through its business and SME lending framework. For eligible projects, the repayment period can extend up to 10 years for captive projects and up to 15 years for other-than-captive projects, including the applicable initial moratorium. The borrower's minimum contribution is generally 20% for captive projects and 25% for other-than-captive projects.

SBI also sets specific eligibility and financial conditions for applicants. Promoters must generally have a minimum CIBIL score of 650, while MSME applicants need a valid Udyam Registration Number. The proposed solar system must be grid-connected, and the applicable project must meet SBI's prescribed financial benchmarks, including a minimum average Gross DSCR of 1.20, FACR of 1.10 and ICR of 1.75. For the captive variant, the EPC contractor should be registered with MNRE/DISCOM as specified by SBI.

The financing can be useful for businesses planning to generate solar power for their own electricity requirements or for eligible entities developing solar projects for power sale. SBI currently provides the Surya Shakti facility with benchmark-linked pricing, and the product page states that pre-payment charges are nil. The applicable interest rate, security requirements and final loan terms depend on the borrower's profile, project assessment and SBI's prevailing guidelines.

Businesses looking specifically for commercial solar finance should distinguish this product from the residential PM Surya Ghar programme. Readers interested in installing rooftop solar at home can also explore the PM Surya Ghar: Muft Bijli Yojana, which provides financial assistance for eligible residential rooftop solar installations. Farmers and other eligible rural beneficiaries interested in solar power generation or solar agricultural pumps can also explore the Pradhan Mantri KUSUM Yojana.

Scheme Benefits

SBI Surya Shakti – Solar Finance helps eligible businesses arrange long-term finance for setting up grid-connected solar projects. The main benefits include:

• Businesses can get a term loan of up to ₹10 crore for eligible captive solar projects.
• Eligible other-than-captive solar projects can get financing of up to ₹50 crore.
• The loan can finance both rooftop and ground-mounted grid-connected solar systems.
• Captive projects can use the generated solar power for the borrower's own electricity requirements.
• Eligible other-than-captive projects can receive finance for power-sale arrangements under long-term PPAs, including Group Captive, Open Access and RESCO models.
• Repayment can be spread over up to 10 years for captive projects and up to 15 years for other-than-captive projects, including the applicable initial moratorium.
• The minimum borrower contribution is 20% for captive projects and 25% for other-than-captive projects.
• No pre-payment charges are applicable under the current product terms.
• Collateral security is not mandatory where SBI considers the available security coverage adequate, subject to the bank's assessment.
• Eligible co-operative housing societies can also obtain finance for captive solar projects, subject to SBI's specific conditions.

The final loan amount, interest rate and other terms depend on the borrower's eligibility, project assessment and SBI's prevailing lending guidelines.

How SBI Surya Shakti Solar Finance Works

SBI Surya Shakti Solar Finance works through a simple project-based loan process. The business first decides how it plans to use the solar power and then applies for finance based on the project requirements.

1. Choose the solar project: The business decides whether it wants a rooftop or ground-mounted solar system. The project may be for captive use or for selling power through an eligible Group Captive, Open Access (Third Party) or RESCO model.`
2. Prepare the project details: The applicant provides details such as the solar system, total project cost, required loan amount and business information. The borrower must arrange at least 20% of the project cost for captive projects and 25% for other-than-captive projects.
3. Submit the application: The loan application can be submitted through the SBI Surya Shakti online portal or the applicable SBI business/SME lending channel, along with the required documents.
4. SBI evaluates the proposal: SBI checks the borrower's credit profile, financial position, project viability, security and repayment capacity. MSME applicants must have an Udyam Registration Number, and all promoters must meet the prescribed CIBIL score requirement of 650 or above.
5. Meet project conditions: For captive projects, the solar system must be used for the borrower's electricity requirements and meet the applicable grid connection and net-metering conditions. Other-than-captive projects require the applicable long-term PPA for power sale.
6. Loan sanction: After appraisal, SBI sanctions the loan based on the approved project cost and lending conditions. The maximum loan is ₹10 crore for captive projects and ₹50 crore for eligible other-than-captive projects.
7. Installation and repayment: The sanctioned finance is used for the eligible solar project, with the financed assets forming part of the primary security. The loan can be repaid over up to 10 years for captive projects and up to 15 years for other-than-captive projects, including the initial moratorium.

In simple terms, the process is: plan the solar project → arrange the required contribution → submit the application → SBI evaluates the business and project → loan is sanctioned → solar system is installed and the loan is repaid as per the approved terms.

Types of Solar Projects Covered

SBI Surya Shakti – Solar Finance covers different types of grid-connected solar projects. The financing depends on how the solar power will be used or sold.

• Rooftop Solar: A solar system installed on the roof of a factory, business premises or other eligible building. It can be used for the business's own electricity requirements or for an eligible power-sale arrangement.
• Ground-Mounted Solar: A solar power system installed on suitable land instead of a building rooftop. SBI covers eligible ground-mounted, grid-connected projects under the scheme.
• Captive Solar: A solar project set up mainly to meet the electricity requirements of the business or eligible entity that owns or uses the project. Captive projects can be financed up to ₹10 crore, with a minimum borrower contribution of 20%.
• Group Captive: A solar project in which eligible users collectively use the electricity generated by the project under the applicable group-captive arrangement. SBI allows eligible Group Captive projects backed by a long-term PPA under the other-than-captive category.
• Open Access: A power-sale arrangement in which electricity generated by the solar project is supplied to a third-party buyer through the applicable open-access framework. SBI lists Open Access (Third Party) among the eligible models for other-than-captive projects.
• RESCO: Under the Renewable Energy Service Company model, the solar project is developed and operated to supply electricity to a customer under an agreed power-sale arrangement. SBI includes RESCO projects under the other-than-captive category.

For captive projects, the solar system must be grid-connected and have a net-metering arrangement. For other-than-captive projects, SBI requires the applicable long-term PPA for power sale.

Loan Amount and Borrower Contribution

The loan amount under SBI Surya Shakti depends on the type of solar project. The borrower must contribute a minimum portion of the project cost from their own funds.

• Captive projects: Loan up to ₹10 crore with a minimum borrower contribution of 20%.
• Other-than-captive projects: Loan up to ₹50 crore with a minimum borrower contribution of 25%.

For example, if a captive solar project costs ₹5 crore, the minimum borrower contribution would be ₹1 crore, subject to SBI's appraisal and the sanctioned loan amount. For an eligible other-than-captive project of the same cost, the minimum contribution would be ₹1.25 crore.

The contribution percentages are minimum requirements specified by SBI. The final loan amount depends on the bank's assessment of the project, borrower and repayment capacity.

Eligibility Requirements

Applicants need to meet SBI's business, project and financial conditions to qualify for Surya Shakti – Solar Finance. The main eligibility requirements are:

• The applicant should be an existing or prospective SME or business enterprise.
• Registered co-operative housing societies can apply for eligible captive solar projects.
• For other-than-captive projects, the applicant should have an eligible long-term Power Purchase Agreement (PPA) for the sale of solar power.
• The proposed solar system should be a grid-connected rooftop or ground-mounted system.
• For captive projects, a net-metering arrangement should be available as per the applicable requirements.
• All promoters should have a minimum CIBIL score of 650.
• MSME applicants should have a valid Udyam Registration Number.
• The expected savings in electricity costs after installing the solar system should be sufficient to cover the monthly loan repayment obligation.
• The project should meet SBI's minimum average Gross DSCR requirement of 1.20.
• The project should meet the minimum FACR of 1.10 and ICR of 1.75.
• Debt-to-equity should not exceed 4:1, and Debt/EBITDA should not exceed 6.
• For captive projects, the EPC contractor should be registered with MNRE/DISCOM as required by SBI.

Final eligibility and loan sanction are subject to SBI's credit appraisal, project assessment and applicable lending guidelines.

Required Documents

Applicants need to provide documents related to their business, financial position and proposed solar project. The exact list may vary depending on the applicant and project, but commonly required documents include:

• Loan application form and KYC documents of the applicant and promoters.
• Business registration and constitution documents, as applicable.
• Udyam Registration Certificate for eligible MSME applicants.
• PAN, GST registration and other applicable statutory documents.
• Recent bank statements and financial statements of the business.
• Income Tax Returns and other financial documents required for credit assessment.
• Solar project proposal or Detailed Project Report (DPR), wherever applicable.
• Quotation or project cost estimate from the proposed EPC contractor.
• Electricity bills and details of the existing electricity connection.
• Documents related to the rooftop, land or premises where the solar system will be installed, as applicable.
• Net-metering documents for applicable captive projects.
• Power Purchase Agreement (PPA) and related project documents for eligible other-than-captive projects.
• Promoter financial and credit information required by SBI for loan appraisal.

SBI may ask for additional documents based on the borrower's business structure, project type and credit assessment. Applicants should confirm the final document list with SBI before submitting the loan application.

Interest Rate and Loan Charges

SBI does not specify one fixed interest rate for all Surya Shakti borrowers. The applicable rate depends on the borrower's rating and SBI's prevailing lending guidelines. For MSMEs, pricing is linked to the External Benchmark Rate (EBR), while loans to non-MSMEs are linked to the 6-month MCLR.

SBI's current website displays interest rates starting from 7.25% per annum, effective from 1 April 2026. This is a displayed starting rate and should not be treated as the fixed rate for every Surya Shakti loan.

The processing or upfront fee is 0.75% of the term-loan amount plus applicable GST. SBI also states that pre-payment charges are nil.

Steps to Apply

Applying for SBI Surya Shakti – Solar Finance starts with preparing the solar project and business details that SBI needs to assess the proposal. The application can then be initiated through SBI's dedicated online portal, with the final loan decision subject to the bank's appraisal.

• First, open the SBI Surya Shakti Online Portal, which is linked as the "Online Portal (Apply now)" option on SBI's official product page.`
• On the portal, provide the requested details about the business and proposed solar project. Keep the project cost, solar system details, financing requirement and other relevant information ready before starting the application.
• Choose the applicable financing requirement based on the project. Captive projects are meant for self-consumption, while eligible other-than-captive projects require the relevant long-term PPA arrangement for power sale.
• Submit the application along with the required business, financial, KYC and project-related documents. For captive projects, the proposed EPC contractor should meet SBI's MNRE/DISCOM registration requirement.
• SBI will assess the proposal based on the applicant's credit profile, financial position, project viability, required margin, security and other applicable eligibility conditions.
• If the proposal meets SBI's requirements, the bank will communicate the sanction and applicable loan terms. The loan is then processed and disbursed according to the approved conditions and documentation.
• Applicants who need assistance with the online process can also approach the relevant SBI branch or SME lending channel for guidance on the application and documentation.

The online application link is provided directly by SBI on its Surya Shakti product page, which also states that the facility is available as a term loan for eligible solar projects.

SBI Surya Shakti vs PM Surya Ghar Loan

Both SBI Surya Shakti – Solar Finance and SBI PM Surya Ghar – Loan for Solar Roof Top provide finance for solar installations, but they are meant for different types of borrowers. SBI Surya Shakti is primarily designed for businesses and eligible commercial solar projects, while the PM Surya Ghar loan is meant for individuals installing rooftop solar at their homes. Understanding this difference can help applicants choose the relevant SBI solar loan.

SBI confirms that Surya Shakti is a business/SME solar-finance product, while its PM Surya Ghar loan is a separate residential rooftop-solar loan. The current SBI PM Surya Ghar terms also require applicants to first register on the PM Surya Ghar National Portal and then apply for the loan through JanSamarth.

For residential consumers, PM Surya Ghar is linked to the Government of India's rooftop-solar programme. The government currently provides collateral-free bank financing at a concessional rate of repo rate plus 50 basis points, which is 5.75% at present, with a 10-year tenure.

Therefore, a business planning a commercial or captive solar project should look at SBI Surya Shakti – Solar Finance, while a household planning rooftop solar should check the SBI PM Surya Ghar loan and the applicable government subsidy provisions.

Relevant Links

• SBI Surya Shakti – Solar Finance
• SBI Surya Shakti Online Application Portal
• SBI Energy Efficient Product

Contact Information

SBI has a dedicated Surya Shakti Cell in Mumbai for processing solar-energy proposals under the Surya Shakti Solar Finance product. SBI's official branch directory lists the Surya Shakti Cell Mumbai under the Mumbai Metro circle with branch code 80088. For product-related assistance, applicants can use SBI's official customer-care channels or contact the relevant SBI SME/business-lending branch.

State Bank of India (SBI)

• Phone: 1800 12341800 2100 / 1800 11 2211/ 1800 425 3800
• Email: [email protected]
• Surya Shakti Cell: Mumbai Metro, Branch Code 80088