What are the best loan schemes for Solar EPC companies in India?

Top loan schemes include SIDBI’s Green Financing, IREDA project loans, MSME-specific solar loans from nationalized banks, and customized NBFC products for solar EPC consultants.

How can IREDA help fund my solar EPC project?

IREDA provides term loans, working capital support, and refinancing options for solar EPC vendors executing rooftop or ground-mounted solar installations across India.

Can startup EPC consultants get solar project loans?

Yes. Startups can access MSME solar loans, SIDBI's special solar schemes, and early-stage funding from green-focused NBFCs, especially with government project tie-ins or residential rooftop plans.

Do SIDBI loans support equipment purchase for solar EPC businesses?

SIDBI green loans help fund procurement of solar panels, inverters, mounting structures, and tools for EPC installers. These loans often come with lower interest rates and energy-efficiency bonuses.

How do EPC companies improve their chances of loan approval?

Maintain strong financials, showcase past solar project success, register as MSME, and present a clear repayment plan. Tying up with government subsidy programs like PM Surya Ghar Yojana also improves credibility.

Are there loans for working capital for solar EPC vendors?

Yes. Banks and NBFCs offer working capital loans tailored for solar EPC operations, helping with inventory management, labor payments, and equipment lease financing during project execution.

Can international EPC companies setting up in India access these loans?

Foreign solar EPC consultants or joint ventures registered as Indian entities can apply for loans through IREDA, SIDBI, and Indian banks, especially for Make in India-aligned solar projects.

Which banks or NBFCs are popular among solar EPC companies?

Popular lenders include SIDBI, IREDA, State Bank of India (SBI), HDFC Bank, L&T Finance, and Tata Capital. Many offer loan products tailored for renewable energy businesses, especially solar EPC vendors.

Loan Guide for Solar EPC Companies: Your Path to Securing Projects

TheGreen Bein
Jun 17
3 min read

Updated: Jul 23

India's renewable energy revolution is accelerating. Solar EPC (Engineering, Procurement, and Construction) companies are its backbone. They execute rooftop installations, utility-scale plants, and everything in between. However, executing these visions demands one essential resource: capital.

This refined Loan Guide for Solar EPC Companies explains how and who to approach for project finance and collateral-free loans through government-backed and institutional channels.

Why Funding is Critical for Solar EPCs

Funding is essential for various reasons:

Procurement & Execution: Businesses need funds to buy panels, batteries, and other components. They also need money to hire a skilled workforce.
Working Capital: Companies must manage payments, salaries, and vendor dues before project receivables clear.
Startup Capital: Money is required for setting up offices, getting licenses, branding, and basic EPC setups.
Scaling Operations: To compete for larger commercial bids, public tenders, or expand into new areas, solar EPCs need funding.
Cash Flow Gaps: Companies need to bridge the gaps between milestone-based EPC billing and client payments.

Top Loan Schemes & Financing Avenues

SIDBI Green Finance Scheme (GFS)

Purpose: This scheme is tailored for green projects and is ideal for EPCs, RESCOs, and vendors.
Loan Size: Typically, loans range from ₹10 lakh up to ₹50 crore for capital or working capital.
Features: Long tenure (up to 10 years), competitive rates, and CGTMSE coverage.
Best For: EPCs involved in rooftop, commercial, or ground-mount solar setups.

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PM Mudra Yojana (PMMY)

Purpose: Provides micro-loans for startups and small operations.
Loan Categories:

- Shishu: Up to ₹50,000

- Kishore: ₹50,001 to ₹5 lakh

- Tarun: ₹5 lakh to ₹10 lakh

USP: Collateral-free loans with zero processing fees.
Best For: Early-stage EPC firms needing fast, unsecured capital.

SBI Surya Shakti – Solar Vendor Finance

Purpose: Financing for solar EPCs and vendors directly involved in system supply or installation.
Loan Range: Loans are available from ₹10 lakh to ₹5 crore (varies by applicant profile).
Features: Faster processing with limited documentation; CGTMSE-backed.
Also Offered By: Other banks like Union Bank (Union Solar), IOB (Surya), and Bank of Maharashtra (Solar MSME Loan).
Best For: EPCs with a banking history at SBI or other PSU banks.

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CGTMSE (Credit Guarantee Fund Trust for Micro & Small Enterprises)

Function: Not a direct loan scheme, but a guarantee cover to enable collateral-free loans.
Coverage: Credit facilities up to ₹2 crore, including working capital and term loans.
How It Helps: This makes banks more comfortable lending to EPC firms without asking for assets.
Eligibility: MSME-registered EPCs with verified turnover and KYC compliance.

Loan Guide for Solar EPC Companies to Secure the Right Loan

Register on Udyam Portal: It is mandatory to have MSME classification. Your registration can be completed here.
File GST Returns Regularly: This demonstrates business activity and compliance.
Prepare a Project-Wise Capital Plan: Justify the use of funds for panels, wiring, logistics, and manpower.
Maintain Updated Books: Keep the last 6 to 12 months' bank statements, income tax returns, and sales invoices handy.
Apply via JanSamarth Portal: This offers centralized access to SIDBI, PSU banks, Mudra, and CGTMSE options.

Key Considerations When Seeking Funding

When seeking funding, EPC companies should consider a few important aspects.

Nature of Business: The lender will review your business model and assess its sustainability.
Loan Amount: Determine the amount you need and ensure it's justifiable.
Repayment Tenure: Understand the repayment terms and plan accordingly.
Interest Rates: Compare rates from various lenders to find the best deal.

Final Thoughts

Whether you're a lean EPC startup or a scaling firm eyeing commercial solar projects, you need a Loan Guide for Solar EPC Companies. The right loan—coupled with the right preparation—can unlock project delivery, team growth, and long-term profitability.

Use the schemes outlined above. Talk to your bank's MSME officer. Let your EPC journey accelerate toward a brighter, solar-powered future.

📅 To consult The Green Bein for solar EPC products, kits, or BOM procurement:

WhatsApp: https://wa.me/919923206872

Website: https://www.thegreenbein.in