Bank of India is the country’s third largest PSU bank, with 4157 branches pan India commanding a strong presence in rural and semi urban areas. The MoU would enable bank financing on solid solar home systems and solar power plants through bank of India’s extensive network and popularise the usage in rural and urban areas, says a report.
The recent Northern Power Grid failure and rising diesel costs has given rise to a growing demand of renewable energy sources as power backup. Easy availability of financing on these systems and quality products will fuel the growth in the market.
According to the report, the solar lights will replace use of kerosene, firewood etc which is harmful for the eyes and lungs of the housewife and other family members. Use of solar energy also reduces the carbon emission from fossil fuels.
“Bank will make efforts to get the carbon credits, the amount earned from which will be used for furthering the Solar Home Lights financing programme,” he reportedly said.
Solid Solar has already tied up with National Bank for Agriculture and Rural Development (NABARD) for financing of its systems through regional rural banks and the collaboration with bank of India will further strengthen company’s presence in various states.
As electricity generation through non conventional sources includes high cost, financial aid provided by Bank of India will not only promote off grid application of solar energy but also boost sustainable business models, it is reported.
