Synopsis: Federal Bank partners with Ecofy, India’s first green-only NBFC, to provide innovative financing for MSMEs adopting rooftop solar solutions. This co-lending partnership aims to finance 3,600 kW of rooftop solar installations annually, cutting over 2,500 tons of CO2 emissions. The initiative addresses financial barriers for MSMEs, fostering sustainable growth and accelerating decarbonization.
Recognizing the potential of renewable energy for the MSME sector, Federal Bank has announced a strategic partnership with Ecofy,
India’s first green-only Non-Banking Financial Company (NBFC), supported by Eversource Capital.
This collaboration is aimed at providing customized financial solutions to MSMEs for rooftop solar installations, helping them overcome traditional financial hurdles in adopting green energy.
Green Financing for MSMEs:
The initiative is a pioneering effort, marking one of the first comprehensive co-lending partnerships tailored to the solar financing needs of MSMEs.
Federal Bank, a leader in MSME financing with over 20% of its loan book dedicated to the sector, offers a range of financial products, including a green loan scheme designed for solar and other eco-friendly initiatives.
Ecofy brings its expertise to the partnership, leveraging its extensive network of over 1,000 EPC (Engineering, Procurement, and Construction) partners and collaborations with leading OEMs such as Tata Power, Waaree, and Mahindra Solarize.
Over the past two years, Ecofy has successfully solarized residential and commercial rooftops, showcasing its capability in advancing green energy solutions.
Key Benefits of the Collaboration:
The program targets financing 3,600 kW of rooftop solar installations each year, benefiting numerous MSMEs.
This move is expected to reduce over 2,500 tons of carbon dioxide emissions annually, aligning with India’s goals for decarbonization and sustainable economic growth.
"Most manufacturing MSMEs operate primarily during daylight hours, making rooftop solar the ideal solution for their energy needs. However, financial constraints have historically impeded their transition to renewable energy," said Rajashree Nambiar, Co-founder, Managing Director & CEO of Ecofy.
This partnership seeks to bridge that gap, offering MSMEs affordable access to rooftop solar installations, enabling cost savings, energy efficiency, and environmental sustainability.
Conclusion:
Federal Bank and Ecofy’s collaboration underscores the critical role of tailored financial solutions in driving the adoption of renewable energy among MSMEs.
By addressing the financial barriers to rooftop solar installations, this initiative not only promotes sustainable practices but also strengthens the MSME sector, contributing to a greener and more resilient economy.
Disclaimer: The information in this article is based on publicly available sources and is intended for informational purposes only. For official details, please refer to Federal Bank and Ecofy’s announcements.
