In a conversation with Nitisha from EFY, N.P. Ramesh of Orb Energy outlines the early financing challenges customers faced. He explains how Orb Energy’s non-collateralised loans simplified solar adoption. As awareness increased, industries recognised the cost savings, leading to repeat business and system expansions.
Q. Can you give a brief overview of Orb Energy’s journey since its inception?
A. Orb Energy was established in 2006 as a solar solutions provider. At first, high solar module prices limited their viability to residential customers. We set up 175 branches across South India, offering solar solutions. The company became profitable within three years, serving nearly 100,000 customers in its first five years. As solar PV module prices declined, we shifted focus to the commercial and industrial (C&I) sectors, particularly SMEs and MSMEs.
Q. What type of customers do you serve today?
A. We primarily cater to small- and medium-scale businesses, with turnovers ranging from `50 million to `10 billion. This segment accounts for about 45% of Indian industries. While many competitors target large corporates, we focus on the underserved SMEs and MSMEs.
Q. What are the key challenges for individuals adopting solar energy systems?
A. Financing is the primary challenge. Initially, customers struggled to secure loans, as banks required collateral for capital-heavy solar investments. The bank loan process could take up to two months, discouraging many from going solar. To overcome this, we introduced in-house financing, providing quick, non-collateralised loans. Customers received decisions in 10-14 days, and we ensured customers’ monthly EMI would be equal to or less than their electricity savings.
Q. How does Orb Energy’s financing model differ from banks?
A. Our financing process is much quicker, taking 10 to 14 days compared to the banks’ 45 days to two months. More importantly, we do not require collateral, unlike banks. This allows our customers to preserve their collateral for other business purposes.
Q. How have customers responded to solar solutions over the years?
A. Customer awareness has increased significantly. Initially, there was scepticism about solar technology, but now industries recognise its cost-saving benefits. Solar energy helps reduce electricity costs, which is the third-largest expense for many industries after raw materials and labour. Repeat customers are common, with many expanding their solar systems as their businesses grow.
Q. Does Orb Energy manufacture its own solar modules?
A. Yes, we have a fully automated manufacturing facility in Bengaluru. The plant operates in three shifts with about 100 employees and conducts thorough quality inspections. Manufacturing in-house allows us to offer competitive prices and maintain strict quality control, which is especially important to our customers, many of whom are manufacturers themselves.
Q. What future developments do you foresee for the solar industry in India?
A. Solar panel efficiency continues to improve, and solar applications are expanding into new sectors, such as agriculture. We expect innovations like solar pumping and agri-solar to grow, with the government aiming for 35-40% of India’s energy needs to come from solar. Storage solutions will also become more critical as solar energy needs to be stored for peak electricity usage.
