Small rooftop solar companies in India struggle to find viable financing options

Nikunj Ghodawat, the chief financial officer at CleanMax Solar, said, “When it comes to large corporates with healthy credit ratings, the availability of finance is not an issue. However, MSMEs and the residential segment are a different story. Due to low or non-existent credit ratings, it is difficult for a developer to raise debt from banks for these customers as well as get into a power purchase agreement of 20 to 25 years, which is necessary to make the solar energy project cost effective.”