Federal Bank Boosts its Commercial Rooftop Solar Financing for MSMEs in association with Ecofy

Federal Bank, one of India's leading private sector Bank has announced a partnership with Ecofy, India's first greenonly NBFC, backed by Eversource Capital, to offer innovative financing solutions for MSMEs investing in commercial rooftop solar installations.

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This collaboration marks one of the first comprehensive co-lending partnerships specifically designed to address the unique solar financing needs of the MSME sector.

The program targets financing 3,600 kW of rooftop solar installations annually, benefiting numerous MSMEs while cutting over 2,500 tons of CO2 emissions each year-accelerating decarbonisation and fostering sustainable growth. Most manufacturing MSMEs predominantly use electricity during daylight hours, making rooftop solar an ideal solution. However, financial constraints have traditionally hindered their transition to renewable energy, with many institutions either reluctant to lend or offering loans at prohibitively high interest rates.