Tata Power Solar & Union Bank Collaborate to Finance Rooftop Solar for MSMEs

One of India’s oldest and largest public sector banks, Union Bank of India (UBI) has partnered with Tata Power Solar Systems Limited (TPSSL) to support the MSME (Micro, Small, and Medium Enterprises) sector’s transition to solar energy (Finance Rooftop Solar). Tata Power Solar Systems Limited (TPSSL) is a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL). By reducing the price of power and improving access to green energy, this partnership aims to increase the profitability of MSMEs.

The organization will be put into action under UBI’s solar program named “Union Solar,” which was introduced on an Indian-wide scale to alleviate the MSME sector of the burden of rising power prices and grid constraints. MSMEs can take advantage of the dual services provided by TPSSL’s Solar EPC, which is financed by UBI’s term loan facility. Through this facility, businesses can borrow up to 8 crores at the best interest rates (reserved exclusively for Tata Power clients) with no collateral or minimal collateral. The program also only demands a 20% minimum down payment on projects, which makes it particularly appealing to MSMEs.

By reducing their reliance on the grid and establishing them as independent power producers with more control over their productivity and output, solar solutions will assist in turning around the MSME sector. This action is anticipated to accomplish several objectives, including making it easier for MSMEs to conduct business, fostering the growth of local businesses and industries that will benefit the nation’s overall economy, and promoting the “Make in India” drive. 

Collaborations like these make sustainable power feasible for local/rural small-scale companies and help accomplish the vision of Aatmanirbhar Bharat by encouraging industries to switch to green energy while accelerating the nation’s adoption of green practices.

TPSSL currently has more than 1.2 GW of rooftop and distributed generation projects across the nation, in addition to a portfolio of more than 10 GW of ground-mount utility-scale solar projects. 

TPSSL runs a top-notch manufacturing facility in Bangalore with a 1,135 MW capacity for the production of solar modules and cells. Additionally, the business recently agreed to a Memorandum of Understanding with the Tamil Nadu government to build a 4 GW solar cell and 4 GW solar module manufacturing facility in the Tirunelveli District. 

Recently, a joint venture between Tata Power and the Government of Delhi, Tata Power-DDL forged a partnership with The Energy and Resource Institute (TERI) to encourage Urja Arpan initiative.