Most solar projects today face delays due to the financial closure and bankability of solar projects is a major issue that developers are facing today.
National banks like SBI and other banks are providing debt at interest rates around 13% to 14%, Higher cost of capital is making solar projects unviable as high interest rates combined with inferior terms in domestic financing is increasing the cost of solar projects by 24-30%
While big players who set up solar projects with 100s of MW capacity are able to obtain cheap international financing as they are able to leverage export credit finance options from international sources with low interest rates. It does not make financial sense for International funding sources to consider any projects with capacity less than 10MW as their cost of due diligence is high and appetite for risk is very low
Combined with low interest rates and advantages with economies of scale with larger projects, big players are able to outbid smaller developers in most recent reverse bidding process in both in Andhra Pradesh, Madhya Pradesh and Telangana
Small developers who are willing to setup solar plants(1MW to 3MW) are at a disadvantage as they are not able to compete with larger players, as it is almost impossible to obtain international financing for any project less than 5MW capacity
For the first time in India, We are able to offer international financing option for small developers who are willing to set up solar plants of capacity 1 MW or more with favorable terms, the interest rate depends on the PPA and financial strength of the developer
There are several opportunities available for small developers and recent Karnataka Solar Scheme for Farmers and Unemployed Youth is one such example, this model is such a big hit it has created a new gold rush in Karnataka to set up solar plants under this scheme, According to media reports MNRE is recommending other states to follow a similar model, Telangana and Andhra Pradesh are working on a similar scheme
Interested in Setting up 1 MW Solar Plant? We’ll present you with current investment models under various schemes offered by different states, We will walk you through the each step of the process from providing required documentation to the state agencies, banks and getting necessary approvals to obtain PPA and Financing
We offer end to end solution for seting-up a solar plant, from initial feasibility to obtaining a PPA, financial closure with internal national financing option, engineering, procurement, construction of the plant including operations and maintenance of the plant
Call us today at +91 9550004871 or email us at email@example.com for a free consultation to get the process started!