Provide easy credit for solar power projects: Bikram Singh Majithia

Punjab government on Wednesday asked banks and financial institutions to provide easy credit to solar power developers in the state.

It is high time for financial institutions and banks to provide easy credit to solar power developers in the state, Punjab New and Renewable Energy Minister Bikram Singh Majithia said.

The minister said, the state's present new and renewable power generation capacity is 811 MW and it is planned to take this capacity to 5,400 MW by 2022.

The state's initiatives in renewable energy have an estimated investment potential of Rs 33,000 crore out of which Rs 23,000 crore is required to be financed by banks, he added.

He informed that IDBI Bank has rolled out a new scheme called 'Surya Shakti' for financing solar power projects by individual households.

Describing net metering a revolutionary step in the direction of producing clean and green energy, Majithia said when each household generates its own solar energy, it not only contribute towards environmental protection but also lays down the foundation for a responsible society.

According to the newly launched 'Surya Shakti' scheme, individuals/joint individuals are eligible for loan up to 60 per cent of project cost subject to maximum of Rs 10 lakh per borrower. The cost of 5 kWp solar plant ideal for a three bedroom house is about Rs 5 lakh.

Out of this, Rs 60,000 will be subsidy and bank will finance Rs 3 lakh, he said. The maximum repayment period will be seven years in equated monthly installments (EMIs).