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IREDA GUIDELINES - Loan Assistance


Indian Renewable Energy Development Agency, New Delhi,  extends loan on soft terms through designated intermediaries for financing of installation of solar thermal devices. 


Encourage large scale usage of low grade solar thermal devices and promote commercialisation.

Introduce the concept of market orientation for successful implementation of the programme, resulting in direct interaction between users and manufacturers.

Ensure savings of electricity/fuel gas  in domestic sector and other fuels such as oil/gas/coal etc. in commercial and industrial sector through large scale use of these devices.


Programme supports supply of solar water heaters, solar air heaters/dryers, solar timber kilns and solar stills for hot water, hot air and supply of distilled water respectively based on solar flat plate collectors and evacuated tube collectors.

Solar steam cookings are also eligible.

Non-governmental organizations, co-operative societies, corporate bodies, institutions, industries, etc. are eligible for the programme.

Solar systems under the scheme must conform to Burea of Indian Standards' specifications.

Cost of complete system determined depending on type and size  of the system and other subsystems.


General Eligibility Conditions

 All types of applicants, who have borrowing powers and powers to take up renewable energy and energy efficiency projects as per their charter are eligible to avail financial assistance from IREDA except the following:

  1. Government Departments

  2. State Electricity Boards (SEBs/utilities)) unless they are restructured or are in the process of restructuring and are also eligible to borrow from REC/PFC.

  3. Individuals, proprietory concerns and partnership firms unless security of bank guarantee is provided

  4. Applicants with accumulated losses (without taking into account effect of re-valuation of assets, if any) as per audited annual accounts of the immediate preceding financial year unless security of bank guarantee is provided.

  5. There is erosion of paid up equity share capital of the applicant as per the latest annual report.

  6. Applicants whose existing debt-equity ratio (total borrowings [other than unsecured loans and working capital loans) to net worth] exceeds 3:1 after taking into account the proposed borrowings from IREDA.

  7. Loss-making applicants as per audited annual accounts of the immediate last year of operation unless security of bank guarantee is provided.

  8. Trust/societies with accumulated revenue deficit or revenue deficit immediately during the past  year unless security of bank guarantee is provided.

  9. Applicants who are in default in payment of dues to financial institutions, banks, BDFCs and/or IREDA at the time of submission of application.

  10. Applicants/group companies and/or main promoters of the applicant company which are in default in payment of IREDA dues at the time of submission of application.

  11. Applicants/group companies classified as willful defaulters as defined by RBI.

  12. Refinancing

  13. Projects commissioned prior to the date of registration of application by IREDA.

  14. Second-hand project, equipment and machinery.

  15. Cost over-run financing.

  16. Applicants/group companies who had availed OTS from IREDA.

  17. Applicants/group companies and/or main promoters of the applicant company convicted by courts for criminal/economic offences or under national security laws.

  18. Applicants registered outside India.

  19. Companies which do not have minimum paid up capital of Rs. 1 lakh and Rs. 5 lakhs or such higher paid up capital as may be prescribed for provate and public companies respective,y.

  20. The minimum loan eligibility from IREDA would be regulated as under


Sector Users Intermediaries Manufacturers
Low grade solar thermal systems Rs. 5 lakhs Rs. 10 lakhs Rs. 10 lakhs


Loans are available through approved intermediaries  of IREDA.

For details please visit website of IREDA   http://www.ireda.nic.in