Surya Shakti Solar Finance Scheme, offered by the State Bank of India (SBI), helps businesses, MSMEs, and commercial establishments finance grid-connected solar power projects. Eligible applicants can avail loans of up to Rs. 10 crore for captive-use projects and up to Rs. 50 crore for non-captive projects developed for power sale under long-term agreements.
SBI Surya Shakti Solar Finance Scheme Highlights | |
|---|---|
| Scheme Name | Surya Shakti Solar Finance Scheme |
| Financing Institution | State Bank of India (SBI) |
| Purpose | Financing rooftop and ground-mounted commercial solar projects |
| Target Beneficiaries | MSMEs, Businesses, Commercial Enterprises, Cooperative Housing Societies |
| Captive Project Loan Limit | Up to Rs. 10 crore |
| Captive Project Terms | 20% borrower margin, repayment up to 10 years |
| Non-Captive Project Loan Limit | Up to Rs. 50 crore |
| Non-Captive Project Terms | 25% borrower margin, repayment up to 15 years |
| Minimum CIBIL Requirement | 650 or above for all promoters |
| Key Financial Criteria | DSCR, FACR, ICR and other SBI credit benchmarks |
| Processing Fee | 0.75% of loan amount plus applicable GST |
| Collateral Requirement | May not be required, subject to SBI’s security assessment |
| Prepayment Charges | Nil |
| Application Mode | Online through Surya Shakti Portal or via SBI SME/Business Banking Branches |
| Appraisal Authority | Surya Shakti Cell (SSC), Mumbai |
| Related Scheme | SBI Surya Ghar Loan for residential rooftop solar projects |
| Official Website | sbi.bank.in |
Introduction of SBI Surya Shakti Solar Finance Scheme: A Brief Insight
For many businesses, the biggest hurdle in switching to solar energy isn’t the technology, it’s arranging the large upfront investment. To help overcome this challenge, State Bank of India (SBI) offers the Surya Shakti Solar Finance Scheme, a dedicated financing solution for commercial and industrial solar projects.
The scheme is operated by State Bank of India (SBI) through its SME and Business Banking network. Its primary objective is to help businesses install rooftop or ground-mounted solar power systems, either for their own electricity consumption or for selling power under long-term commercial arrangements.
Under Surya Shakti Solar Finance Scheme, businesses setting up captive (self-use) solar projects can avail loans of up to Rs. 10 crore, with a minimum margin requirement of 20% and a repayment period of up to 10 years. For non-captive projects involving power sale through a Power Purchase Agreement (PPA), SBI offers loans of up to Rs. 50 crore, with a 25% margin and repayment tenure extending up to 15 years.
To qualify, promoters are generally required to maintain a CIBIL Score of at least 650 and satisfy SBI’s financial assessment parameters, including benchmarks such as DSCR, FACR, and Interest Coverage Ratio.
Applications can be submitted through SBI SME/ Business Banking branches or via the dedicated Surya Shakti online portal. Every proposal is evaluated by SBI’s specialised Surya Shakti Cell (SSC), which conducts both technical and financial appraisal before loan approval.
Individual homeowners looking for residential rooftop solar financing should instead explore SBI’s Surya Ghar Loan linked to the Central Government’s PM Surya Ghar Nishulk Bijli Yojana. Farmers interested in solar-powered irrigation systems can also check the PM KUSUM Yojana, which supports solar pumps and decentralised solar power generation.
Businesses, MSMEs, startups, and organisations interested in renewable energy financing can also explore other initiatives available on our Central Government Welfare Schemes List page.
Benefits Provided to Eligible Beneficiaries
Surya Shakti Solar Finance Scheme offers dedicated financing solutions for businesses investing in solar energy projects. The scheme is available under two separate variants, allowing applicants to choose the option that best matches their power consumption or power generation business model.
Captive Variant – For Self-Consumption Projects
- Loan facility up to Rs. 10 crore
- Minimum borrower contribution of 20% of the project cost
- Repayment period up to 10 years, including the applicable moratorium period
- Available for existing and new business enterprises, MSMEs, commercial establishments, and Cooperative Housing Societies
- Suitable for businesses looking to reduce electricity expenses through captive solar power generation
Non-Captive Variant – For Power Sale Projects
- Loan facility up to Rs. 50 crore
- Minimum margin requirement of 25%
- Repayment tenure up to 15 years, including moratorium
- Applicable for Group Captive, Open Access (Third-Party Sale), and RESCO-based solar projects
- Designed for projects generating revenue through the sale of electricity under long-term arrangements
Additional Features and Loan Terms
- Interest rate linked to EBR for MSME borrowers and 6-Month MCLR for Non-MSME borrowers, subject to the bank’s internal credit assessment
- Processing fee of 0.75% of the sanctioned loan amount, plus applicable GST
- No prepayment penalty, allowing borrowers to repay the loan ahead of schedule without additional charges
- Collateral security may not be mandatory where adequate security coverage is available as per SBI norms; primary security generally consists of hypothecation of assets created out of bank finance and a negative lien on the project premises
- Personal guarantee of promoters, partners, directors, or proprietors is generally required
Eligibility Conditions Required to be Fulfilled
State Bank of India has prescribed specific eligibility requirements for businesses seeking financial assistance under Surya Shakti Solar Finance Scheme. Apart from the applicant’s business profile, the proposed solar project must also satisfy the bank’s technical and financial assessment criteria.
- Must be an existing or proposed business entity, including Proprietorship Firms, Partnership Firms, LLPs, Private Limited Companies, Public Limited Companies, and Cooperative Housing Societies
- CIBIL score of all promoters should be at least 650
- The proposed solar power system must be grid-connected
- A valid Net Metering arrangement is required for captive solar projects
- MSME applicants must possess a valid Udyam Registration Number (URN)
- The projected savings from solar power generation should be sufficient to support the proposed loan repayment obligations
Financial Benchmarks Required by SBI
- Average Gross DSCR: Minimum 1.20
- Fixed Asset Coverage Ratio (FACR): Minimum 1.10
- Interest Coverage Ratio (ICR): Minimum 1.75
- Debt-to-Equity Ratio: Maximum 4:1
- Debt-to-EBITDA Ratio: Maximum 6
Additional Requirement for Non-Captive Solar Projects
- A valid long-term Power Purchase Agreement (PPA) must be available with the power purchaser, utility, or group-captive arrangement for the sale of generated electricity
Who Is Not Eligible
- Applicants who do not have ownership rights or a valid long-term lease for the proposed project site
- MSME units without a valid Udyam Registration Number
- Projects that fail to meet SBI’s prescribed financial viability parameters
- Solar installations that do not comply with grid connectivity or applicable regulatory requirements
Documents Required to be Attached
To apply for Surya Shakti Solar Finance Scheme, applicants need to submit documents related to both their business profile and the proposed solar power project. Since SBI evaluates the financial strength of the applicant as well as the technical feasibility of the project, keeping all documents ready in advance can help speed up the appraisal process.
- Business registration documents – Partnership Deed, Certificate of Incorporation, MOA/AOA, or Udyam Registration Number (URN), as applicable
- GST Registration Certificate (GSTIN) and PAN Card of the business entity
- KYC documents of promoters, directors, partners, or authorised signatories
- Audited financial statements and Income Tax Returns for the previous 2-3 financial years
- Bank account statements for the last 6-12 months
- Detailed Project Report (DPR), including project capacity, equipment specifications, estimated project cost, and implementation details
- Net metering approval, grid connectivity approval, or feasibility clearance from the concerned DISCOM, wherever applicable
- For Non-Captive Solar Projects, a copy of the Power Purchase Agreement (PPA) or proposed power sale arrangement
How Beneficiaries Can Apply to Avail the Benefit of the Scheme
Applying for Surya Shakti Solar Finance Scheme is easier when you break it into simple steps. In basic terms, SBI first checks whether your solar project is technically feasible and then verifies whether your business can comfortably repay the loan. Here’s how the process generally works from start to finish.
Step 1: Choose a solar EPC contractor who is approved by MNRE or recognised by your local DISCOM. This contractor will help design your solar project and prepare the technical documents required by the bank.
Step 2: Ask the contractor to prepare a Detailed Project Report (DPR). This report should clearly mention the proposed system capacity, equipment specifications, estimated generation, project cost, and installation plan.
Step 3: Apply for net metering approval and grid connectivity feasibility from your local DISCOM. This step confirms that your location is suitable for connecting the solar plant to the electricity network.
Step 4: Visit the official SBI Surya Shakti Solar Finance page, or directly access the Surya Shakti application portal to begin the application process.
Step 5: If you prefer personal assistance, visit your nearest SBI SME or Business Banking Branch. Bank officials can guide you regarding eligibility, documentation, and the most suitable loan variant.
Step 6: Complete the application form and select the appropriate category – Captive if the electricity will be used by your own business, or Non-Captive if the power will be sold under a Power Purchase Agreement (PPA).
Step 7: Submit all required documents, including your business registration papers, financial statements, DPR, DISCOM approvals, and PPA documents where applicable.
Step 8: After submission, your proposal is forwarded to SBI’s specialised Surya Shakti Cell (SSC). The bank examines the technical feasibility of the project and evaluates key financial parameters such as DSCR, FACR, repayment capacity, and overall project viability.
Step 9: If the proposal meets SBI’s requirements, the loan is sanctioned. You will then complete the necessary loan documentation, execute the hypothecation agreement, and provide the required promoter guarantees.
Step 10: Once all formalities are completed, SBI releases the loan amount. Disbursement is generally made in phases linked to project progress and is often paid directly to the approved EPC contractor or equipment supplier.
Important: Before applying, ensure that your project’s financial projections are realistic and capable of meeting SBI’s required benchmarks. Keeping your documents, approvals, and DPR ready in advance can significantly reduce processing time. If you’re unsure whether the Captive or Non-Captive variant is right for your project, discuss your requirements with an SBI SME branch before submitting the application.
Important Links Available of the Scheme
- Apply for Surya Shakti Solar Finance Scheme – Official SBI Portal
- Surya Shakti Cell (SSC) Portal – Online Application Login
- BEE Financing Schemes Compendium – Solar & Energy Efficiency Projects
Contact Details in Case of Help Needed
- Financing Institution: State Bank of India (SBI), SME/Business Banking
- Nodal Processing Unit: Surya Shakti Cell (SSC), Mumbai
- Local Level: Visit your nearest SBI SME/ Business Banking branch
Frequently Asked Questions (FAQs)
Q. What is Surya Shakti Solar Finance Scheme?
Ans. Surya Shakti Solar Finance Scheme is a specialised loan product offered by State Bank of India (SBI) to support the installation of grid-connected rooftop and ground-mounted solar power projects. The scheme is designed for MSMEs, businesses, commercial establishments, and Cooperative Housing Societies looking to reduce electricity costs or generate revenue through solar energy.
Q. Is this the same as SBI’s Surya Ghar Loan?
Ans. No. SBI’s Surya Ghar Loan is meant for individual homeowners installing residential rooftop solar systems under PM Surya Ghar Muft Bijli Yojana. Surya Shakti Solar Finance Scheme is a separate financing product specifically created for commercial, industrial, and institutional solar projects.
Q. What is the difference between Captive and Non-Captive projects?
Ans. Captive projects are installed primarily to meet the applicant’s own electricity requirements. Non-Captive projects are developed for selling electricity under a long-term Power Purchase Agreement (PPA), including Group Captive, Open Access, and RESCO models.
Q. Who can apply for Surya Shakti Solar Finance Scheme?
Ans. Proprietorship firms, Partnership Firms, LLPs, Private Limited Companies, Public Limited Companies, MSMEs, and Cooperative Housing Societies can apply, subject to SBI’s eligibility norms and financial assessment criteria.
Q. What is the maximum loan amount available?
Ans. SBI provides loans of up to Rs. 10 crore under the Captive category and up to Rs. 50 crore under the Non-Captive category, depending on project viability and the applicant’s repayment capacity.
Q. Is collateral security compulsory?
Ans. Not in every case. SBI may consider projects without additional collateral if the overall security coverage is satisfactory. However, assets created through the loan are generally hypothecated in favour of the bank, and promoter guarantees are required.
Q. How can I apply for this scheme?
Ans. Eligible applicants can submit their proposal through the official SBI Surya Shakti Portal or approach the nearest SBI SME/Business Banking Branch for assistance with the application process.
Q. What documents are usually required?
Ans. Applicants generally need business registration documents, PAN Card, GST registration, financial statements, Income Tax Returns, bank statements, a Detailed Project Report (DPR), DISCOM feasibility approval, and a Power Purchase Agreement (for Non-Captive projects).
Q. What processing fee does SBI charge?
Ans. SBI charges an upfront processing fee of 0.75% of the sanctioned loan amount, along with applicable GST, as per the bank’s prevailing guidelines.
Q. Can I repay the loan before the tenure ends?
Ans. Yes. The scheme currently allows prepayment without any prepayment penalty, giving borrowers greater flexibility in managing their finances.
Q. Who evaluates and approves the application?
Ans. Applications are examined by SBI’s dedicated Surya Shakti Cell (SSC), which conducts both technical and financial appraisal before sanctioning the loan.
Q. Where can I get help regarding this scheme?
Ans. You can contact your nearest SBI SME Branch, Business Banking Branch, or visit the official Surya Shakti Solar Finance portal for the latest guidelines, eligibility details, and application support.
Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.