Solar Power Project Finance

Funding Through Indian Banks

We facilitate solar power project financing through leading Indian banks, with funding options starting from INR 5 Crore and extending beyond INR 1,000 Crore, with no upper cap, subject to eligibility and project viability.

Solar Power Project Finance

Documents Required for Solar Project Assessment

To initiate the credit appraisal process, the following documents are required:

Corporate & Promoter Details

  • Business Profile
  • Promoters’ Profile
  • Promoters’ Net Worth Certificate
  • Promoter KYC
  • Entity KYC

Financial Documents

  • Audited Financial Statements for the latest 3 years (including FY 2023–24)
    • Balance Sheet
    • Profit & Loss Account
    • ITR with all schedules
  • Bank Statements for the last 12 months for all banks
    • PDF format
    • Non-password protected
  • GSTR-3B filings for the latest 12 months
  • Existing Sanction Letters (if any)

Project-Specific Documents

  • Power Purchase Agreement (PPA)
  • Land Lease Agreement
  • Detailed Project Report (DPR), including CMA Data
  • Collateral Details

Key Eligibility Criteria

  • The proposed funding amount should be up to 4 times the company’s turnover.
  • A minimum of 2 years’ turnover and balance sheet history is mandatory.
  • In the absence of the above financial track record, the proposal will not be considered.

Solar Power Project Finance

Funding Through International Banks

International banks apply rigorous due-diligence standards when financing solar power projects. Their requirements are designed to confirm that a project is financially viable, technically sound, legally robust, and compliant with international environmental and social standards, typically aligned with the IFC Performance Standards and the Equator Principles.   Below is an overview of the core documentation generally required for international project finance.

1. Project Agreements & Key Contracts

  • Power Purchase Agreement (PPA): A long-term (typically 20–25 years) agreement with a creditworthy offtaker, defining tariff structure, dispatch obligations, and payment security.
  • Implementation Agreement / Government Support Agreement (GSA): Provides government backing, regulatory stability, and risk-mitigation mechanisms where applicable.
  • EPC Contract: A fixed-price, date-certain, turnkey contract covering design, construction, and commissioning.
  • Operations & Maintenance (O&M) Contract: Long-term agreement ensuring reliable operation, maintenance standards, and performance guarantees.
  • Land Use Rights / Lease Agreement: Evidence of secure, long-term land tenure aligned with the project life.
  • Grid Connection Agreement: Formal agreement with the grid operator covering interconnection terms and responsibilities.

2. Environmental & Social (E&S) Documentation

  • Environmental and Social Impact Assessment (ESIA): Comprehensive assessment conducted in line with IFC / World Bank standards.
  • Non-Technical Summary (NTS): Publicly disclosed summary of the ESIA in accessible language.
  • Stakeholder Engagement Plan (SEP): Documentation of stakeholder consultations and grievance mechanisms.
  • Resettlement Action Plan (RAP) / Livelihood Restoration Plan (LRP): Required if land acquisition or project activities affect local communities.
  • Forced Labor & Supply Chain Declarations: Contractor and supplier compliance statements aligned with international labor standards.

3. Technical Studies & Feasibility

  • Feasibility Study: Detailed technical, operational, and economic analysis of the project.
  • Solar Resource Assessment: Independently validated irradiation data (e.g., GHI, DNI) and yield projections.
  • Grid Interconnection Study: Load flow, short-circuit, and system stability studies approved by the grid operator.
  • Technical Specifications & Design Documentation: Detailed engineering drawings, layouts, and equipment specifications.

4. Financial & Legal Documentation

  • Financial Model: Bankable financial model covering assumptions, cash flows, debt service, and returns (IRR, DSCR).
  • Legal & Regulatory Approvals: All permits and licenses required to construct and operate the project.
  • Insurance Policies: Construction-phase and operational insurance coverage consistent with lender requirements.
  • Risk Allocation & Force Majeure Provisions: Clear contractual allocation of construction, operational, political, and force majeure risks.

5. Corporate & Procurement Information

  • Corporate Documentation: Audited financial statements, ownership structure, and legal standing of the SPV.
  • Procurement Plan: Evidence of transparent and competitive procurement processes for EPC and major equipment.

Summary

  • Technically bankable
  • Financially sustainable
  • Legally enforceable
  • Environmentally and socially responsible
Compliance with IFC, World Bank, and Equator Principles is typically a prerequisite for securing international project finance.