WAAREE obtains a credit line of 500 Cr for solar projects
Strong points :
- SBI’s Rs 500 cr line of credit for unsecured financing could be a big step forward for a better understanding of solar financing for the banking sector as a whole.
WAAREE Energies, India’s largest solar panel manufacturer, has reached an agreement with the State Bank of India (SBI) to avail unsecured financing for solar projects through the Surya Shakti Solar Finance Scheme and provide working capital distribution partners under the EDFS (Electronic dealer finance scheme). The line of credit is currently up to Rs 500 crores.
SBI’s Surya Shakti solar financing program is aimed at SMEs, with a minimum solar capacity requirement of 1 MW. Loan amounts are a maximum of RS 4 crore, with a 20% spread, and repayment periods of up to 10 years with a six-month moratorium.
With this arrangement, WAAREE intends to leverage the line of credit to provide a digital platform enabling a hassle-free journey for loan seekers for financing solar projects.
WAAREE has one of the widest reach across India through its network of channel partners. This unsecured financing facility to be used by commercial institutions, industries, resorts, hotels, manufacturing units and warehouses to adopt solar energy as a new source of energy will thus help to significantly expand the coverage solar. WAAREE says the entire ecosystem has been put in place to ensure that customers receive all the support and guidance needed to choose the right equipment, resolve technical issues at their doorstep, and speed up loan approvals.
Recently, WAAREE became the first manufacturer in India to get a 650 Wp solar panel listed in the ALMM (Approved List of Module Manufacturers). WAAREE’s state-of-the-art panel manufacturing facilities are equipped to manufacture panels over 540Wp, meeting the demand for quality, high-efficiency solar panels. PVEL, a globally recognized laboratory in the field of photovoltaic testing, has ranked WAAREE among the best performers in its 2022 scorecard which is published to highlight the performance of global manufacturers.
For SBI, the arrangement offers yet another opportunity to grow and better understand the solar sector, where financing is sorely needed to support expansion. Banks have generally waited due to doubts about asset quality as well as project understanding. Now, by partnering with a national player and unsecured financing, it is piloting a new model to support solar growth across India. The combination of its own massive reach and 388 WAAREE’s strong network across India should hopefully be a very successful partnership for solar power buyers.