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Loan Guide for Solar EPC Companies in India

Updated: Jun 18

Loan Guide for Solar EPC Companies
Solar EPC Consultants

India's renewable energy revolution is accelerating, and Solar EPC (Engineering, Procurement, and Construction) companies are its backbone — executing rooftop installations, utility-scale plants, and everything in between. But 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


✅ Procurement & Execution: Buying panels, batteries, BOS components, and hiring skilled workforce

✅ Working Capital: Managing payments, salaries, vendor dues before project receivables clear

✅ Startup Capital: For offices, licensing, branding, and basic EPC setup

✅ Scaling Operations: Entering larger commercial bids, public tenders, or new geographies

✅ Cash Flow Gaps: Bridging milestone-based EPC billing and client payments


🌌 Top Loan Schemes & Financing Avenues


SIDBI Green Finance Scheme (GFS)


  • Purpose: Tailored for green projects — ideal for EPCs, RESCOs, and vendors

  • Loan Size: Typically from ₹10 lakh up to ₹50 crore for capital or working capital

  • Features: Long tenure (up to 10 years), competitive rates, CGTMSE coverage

  • Best For: EPCs involved in rooftop, commercial, or ground-mount solar setups



PM Mudra Yojana (PMMY)


  • Purpose: 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, 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: ₹10 lakh to ₹5 crore (varies by applicant profile)

  • Features: Faster processing, limited documentation, CGTMSE-backed

  • Also Offered By: Union Bank (Union Solar), IOB (Surya), Bank of Maharashtra (Solar MSME Loan)

  • Best For: EPCs with business banking history at SBI or other PSU banks



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 both working capital and term loans)

  • How It Helps: 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


  1. Register on Udyam Portal: Mandatory MSME classification

    https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

  2. File GST Returns Regularly: Demonstrates business activity and compliance

  3. Prepare a Project-Wise Capital Plan: Justify use of funds — panels, wiring, logistics, manpower

  4. Maintain Updated Books: Last 6–12 months' bank statements, ITRs, sales invoices

  5. Apply via JanSamarth Portal: Centralized access to SIDBI, PSU banks, Mudra, and CGTMSE options



🌿 Final Word


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 — with the right preparation — unlocks project delivery, team growth, and long-term profitability.


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


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


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