Orb Energy Solar Solutions has established a significant partnership with India's largest lender, the State Bank of India (SBI), through a sublicensing agreement to finance solar power projects. This collaboration is expected to accelerate the growth of solar energy initiatives in India by providing improved financing opportunities for solar power developments.
Solar Finance Scheme
SBI's Surya Shakti Solar Finance Scheme, which has approved Orb Energy as a vendor, serves as the bank's primary initiative for promoting widespread solar energy adoption. The scheme enables residential, commercial, and industrial customers to install rooftop solar systems through solar loans, aligning with India's broader strategy to make solar financing more accessible.
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Through SBI's program, commercial and industrial customers can access loans up to ₹10 crores with a 20 percent down payment and flexible repayment terms, while residential customers can obtain loans up to ₹10 lakhs for rooftop solar installations. These favorable financing options aim to significantly reduce the financial barriers to entering the solar power market.
Orb Energy's Partnership With SBI
The partnership between Orb Energy and the State Bank of India (SBI) has been instrumental in accelerating the adoption of rooftop solar systems in India. This collaboration brings the country closer to achieving the government's ambitious goal of 100 GW of rooftop solar power by 2030.
SBI, a pioneer in financing renewable energy projects, has once again demonstrated its commitment to India's green energy transition by partnering with Orb Energy. This partnership is expected to stimulate increased investment in solar energy and contribute significantly to India's renewable energy targets and carbon reduction goals.
This collaboration will primarily benefit consumers. By making solar power systems more accessible through easier loan processes, the partnership empowers individuals to reduce their electricity bills and contribute to environmental sustainability. This long-term investment in clean energy not only saves money but also promotes eco-friendly practices.
About Orb Energy
Orb Energy, founded in 2006 by Damian Miller and NP Ramesh, has grown significantly since its inception in Princeton, New Jersey. With its headquarters in Bangalore and the first branch in Kumta, the company now boasts a network of 100 branches across Karnataka.
As of April 2024, Orb Energy had successfully installed over 166,000 solar home systems across India, totaling 288 megawatts of clean energy. In collaboration with various banks, the company is now offering collateral-free loans to small and medium-sized businesses, making solar technology more accessible to a wider range of customers.
In 2017, Orb Energy secured a $15 million investment from the Netherlands Development Finance Company (FMO), the US Government's Overseas Private Investment Corporation (OPIC), and the German Investment Corporation (DEG). Additionally, in 2019, Shell acquired a 20% stake in the company.
Orb Energy also attracted capital from Bamboo Capital Partners (Luxembourg), Rianta Capital (Switzerland), and Pamiga SA (Luxembourg). The company expanded its regional presence to Africa in 2014, establishing a subsidiary in Kenya to replicate its successful Indian business model. By collaborating with local banks, Orb Energy Kenya offers solar loans to both residential and commercial customers, making solar energy more accessible in the region.
Impact on the Solar Industry
By collaborating with the State Bank of India to streamline solar power financing, Orb Energy is playing a pivotal role in accelerating the adoption of solar energy in India. Until recently, the high upfront costs associated with solar power installations have been a major barrier. This partnership addresses this challenge by providing easier access to financing, thereby stimulating the growth of the solar energy market.
Orb Energy aims to install 100 MW of solar power capacity annually. This ambitious goal will drive increased production of solar panels, leading to economies of scale and ultimately reducing costs. As a result, solar energy will become increasingly affordable for consumers.
The expansion of solar energy will help India reduce greenhouse gas emissions, meet its Paris Agreement obligations, and decrease its reliance on fossil fuels. While the initiative enhances India's energy security and resilience through abundant solar resources, the immediate financial advantages may be the primary driver of adoption.
The rapid expansion of the solar energy sector, as highlighted by IRENA's projection of over 18 million global jobs by 2050, presents a significant opportunity for economic growth and job creation. This threefold increase in the solar workforce by 2050 is particularly striking and underscores the transformative potential of this industry.