In a significant move to promote solar rooftop installations under the PM Surya Ghar scheme, Jammu Kashmir Bank (J&K Bank) has partnered with Kashmir Power Distribution Corporation Limited (KPDCL) to offer collateral-free, low-interest loans to residential customers for solar installations up to 10 kWp.
Under this partnership, J&K Bank has released guidelines for covering the full upfront cost of solar rooftop systems through MNRE’s flagship scheme, which offers a 60% subsidy for plants up to 3 kWp. This collaboration is expected to encourage more households to adopt solar energy.
KPDCL, in a statement, welcomed the bank’s support, encouraging consumers registered on the National Portal to also apply on the Jan Samarth portal or visit J&K Bank branches to access these loans.
“Consumers can now take advantage of this loan facility, which requires just a 5% beneficiary contribution for plants up to 3 kWp, and 10% for systems between 3 kWp and 10 kWp,” said a KPDCL spokesperson.
So far, 3,253 residents in Kashmir Division have applied on the National Portal, with 1,182 consumers choosing vendors and nearly 200 already installing systems with a combined capacity of 748.07 kW.
The KPDCL spokesperson expressed optimism that J&K Bank’s involvement would drive up interest in the scheme, which includes a Central and UT subsidy capped at Rs. 94,800. This subsidy will offset the loan amount once the solar system is operational, adjusting the EMI accordingly.
The spokesperson added that other banks, including SBI, PNB, and Canara Bank, are also providing similar financing options, aiming to make rooftop solar more accessible through EMI-based loans.