Orb Energy, a leading provider of rooftop solar solutions, has entered into a strategic partnership with the State Bank of India (SBI) under the Surya Shakti Solar Finance Scheme. This collaboration aims to enhance financing options for solar power projects across residential, commercial, and industrial sectors, marking a significant step towards promoting sustainable energy solutions in India.
Key Highlights of the Partnership
Agreement with SBI: Orb Energy has become an approved vendor under SBI’s Surya Shakti Solar Finance Scheme. This scheme focuses on providing accessible financing for solar installations, making it easier for various sectors to adopt solar energy. The scheme includes:
- Solar Loans for Customers: SBI will offer solar loans to Orb Energy’s customers for the installation of rooftop solar systems.
- Residential Customers: Loans of up to Rs. 10 lakhs for solar installations in residential properties.
- Commercial and Industrial Customers: Loans of up to Rs. 10 crores with a minimum down payment of 20% and extended tenures.
Supporting Rooftop Solar Adoption: The collaboration is expected to accelerate the adoption of rooftop solar systems, which typically have a payback period of 3-4 years for commercial and industrial customers and 4-5 years for residential customers. Solar panels come with warranties of 25 years or more, ensuring long-term benefits and sustainability.
Government’s Goal: The partnership aligns with the Indian government’s ambitious target of achieving 100 GW of rooftop solar capacity by 2030. This collaboration supports the national goal by making solar financing more accessible and promoting the widespread adoption of renewable energy.
Orb Energy’s Perspective
Damian Miller, Co-Founder and CEO of Orb Energy, expressed his enthusiasm about the partnership: “Signing with the State Bank of India is a significant milestone for Orb Energy and its customers. We look forward to enabling more of our customers to benefit from SBI’s low-cost financing for rooftop solar systems.” This statement underscores the strategic importance of the partnership in expanding Orb Energy’s reach and impact.
Orb Energy’s Track Record
Orb Energy has already installed over 300 MW of rooftop solar capacity and consistently ranks among the top rooftop solar providers according to CRISIL. The collaboration with SBI is expected to further boost Orb Energy’s growth and offer customers additional financing options for their solar projects.
Detailed Insights into the Surya Shakti Solar Finance Scheme
The Surya Shakti Solar Finance Scheme, launched by SBI, is designed to support the financing of solar projects with a capacity of up to 1 MW. This initiative is part of SBI's broader strategy to enhance renewable energy infrastructure and reduce the carbon footprint in India. The scheme provides:
- Financing for Solar Projects: Loans up to INR 4 crore with a 20% margin requirement.
- Flexible Repayment Terms: A payback period of up to 10 years, including a 6-month moratorium.
- Digital Processing: A centralized processing cell called the Surya Shakti Cell, established in Mumbai, handles all loan applications, ensuring a hassle-free, digital journey for applicants.
Impact and Benefits of the Partnership
Cost Savings: By switching to solar energy, businesses and households can drastically reduce their electricity bills. The financial savings from lower energy costs can be substantial, especially for commercial and industrial customers with high energy consumption.
Environmental Impact: Promoting the use of renewable energy helps in reducing greenhouse gas emissions, contributing to the fight against climate change. This partnership aligns with global sustainability goals and India's commitment to reducing its carbon footprint as part of the COP26 agreement.
Financial Support: The Surya Shakti Solar Finance Scheme provides accessible financial solutions, making it easier for customers to invest in solar technology. The availability of low-cost loans and favorable repayment terms are expected to drive higher adoption rates for rooftop solar systems.
Statements from Key Stakeholders
Dinesh Khara, Chairman of SBI, emphasized the importance of this initiative in aligning with global sustainability goals. He stated, "We are delighted to partner with Orb Energy under the Surya Shakti Solar Finance Scheme. This collaboration will not only promote the use of renewable energy but also support India's commitment to the COP26 agreement in reducing the carbon footprint."
Damian Miller, CEO of Orb Energy, highlighted the strategic benefits of the partnership, saying, "Teaming up with SBI under this scheme is a significant step towards making solar energy more accessible and affordable. We are committed to providing high-quality solar solutions and ensuring a seamless experience for our customers."
Previous Collaborations and Future Prospects
This partnership is part of SBI's ongoing efforts to enhance its renewable energy portfolio. SBI has previously collaborated with Tata Power Solar Systems under the same scheme, indicating a strong focus on fostering partnerships that promote sustainable energy solutions.
The collaboration with Orb Energy is expected to further these efforts by bringing in Orb's expertise and innovative solutions.
Key Highlights
| Category | Details |
|---|---|
| Announcement Date | June 1, 2024 (announcement) and June 3, 2024 (detailed update) |
| Partnership | Orb Energy with State Bank of India (SBI) |
| Scheme Name | Surya Shakti Solar Finance Scheme |
| Objective | To provide accessible financing for solar power projects across residential, commercial, and industrial sectors |
| Approved Vendor | Orb Energy |
| Loan Details | - Residential Customers: Up to Rs. 10 lakhs |
| - Commercial and Industrial Customers: Up to Rs. 10 crores with a 20% minimum down payment | |
| - General Scheme: Loans up to INR 4 crore with a 20% margin | |
| Repayment Terms | - Flexible repayment up to 10 years with a 6-month moratorium |
| Processing | Centralized processing cell called the Surya Shakti Cell in Mumbai |
| Key Benefits | - Cost savings on electricity bills |
| - Environmental impact by reducing greenhouse gas emissions | |
| - Financial support through low-cost loans and favorable terms | |
| Orb Energy's Role | - Providing high-quality solar panels and related equipment |
| - Offering technical support from installation to maintenance | |
| Government's Goal | Aligns with India’s target of achieving 100 GW of rooftop solar capacity by 2030 |
| Statements | - Dinesh Khara, Chairman of SBI: Partnership aligns with global sustainability goals and COP26 agreement |
| - Damian Miller, CEO of Orb Energy: Partnership makes solar energy more accessible and affordable | |
| Orb Energy’s Track Record | Over 300 MW of rooftop solar capacity installed; consistently ranks among top rooftop solar providers according to CRISIL |
| Previous Collaborations | SBI has previously collaborated with Tata Power Solar Systems under the Surya Shakti Solar Finance Scheme |
| Impact | Expected to drive higher adoption rates for rooftop solar systems, support economic growth, and contribute to India's clean energy transition |
Hi, I’m Durgesh Nayak, and I hold a Master’s degree in Commerce with over five years of experience in the banking sector. I am certified with JAIIB and CAIIB, which has given me a solid foundation in financial knowledge. For the past four years, I’ve been sharing my passion for finance through writing money and finance blogs.
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