Depending upon the technical and financial viability of the project, IREDA may finance up to 75% of the cost of the solar project for greenfield project and up to 80% of project cost for commissioned project subject to fulfilment of certain conditions. Please refer IREDA Financing norms.
For details with respect to the terms, please refer to IREDA Financing Guidelines available on the website.
Application formats are available on the website of IREDA. The forms contain an indicative list of documents which are required to be submitted along with the application forms. IREDA may ask for additional documents / information if required, for analysis of the proposal.
For information, kindly refer to roof-top and solar thermal schemes available on our website.
Solar energy projects can be installed anywhere in India. However, as different regions have different intensity of solar radiation, the output power from the solar project may vary from region to region.
For detailed information on Interest Rate and incentive, kindly refer IREDA's Financing Norms and IREDA Website. IREDA is a financial institution and does not provide any subsidy. For details of Government support / incentives / policy / subsidy available, please contact MNRE and refer MNRE website.
In India, windfarms can be established at MNRE / NIWE / State Nodal Agency identified potential sites or at sites identified by private developers duly certified by NIWE.
Projects are required to obtain approval from Central and State Government as the case may be for setting up the project.
Depending upon the technical and financial viability of the project, IREDA may finance the project for green field / commissioned project as per IREDA's Financing norms.
For detailed information on Interest Rate and incentive, kindly refer IREDA's Financing Norms and IREDA Website. IREDA is a financial institution and does not provide any subsidy. For details of Government support / incentives / policy available, please contact MNRE and refer MNRE website.
IREDA does not finance greenfield projects involving second hand equipment and machinery.
IREDA normally obtains charge on project assets and revenue stream of project as securities. However additional securities are also obtained based on risk perception and as per financing norms.
Moratorium / grace period is the period during which borrower repays only interest on loan availed. Maximum moratorium / grace period available for Wind projects is up to 18 months from the date of SCOD / COD of the project, whichever is earlier.
The repayment period shall be maximum up to 25 years, depending on the project cash flows, DSCR of the projects etc., and it shall be after the construction & moratorium, with a condition that IREDA shall have the right to call option after 15 years of repayment. Total loan to be amortized within 85% of the balance useful life period as per CERC.
Yes, if security of Bank Guarantee / Pledge of FDR from a Scheduled Commercial Bank is provided.
Machine types eligible (Wind Electric Generator — WEG) for financing wind projects will be as per Revised List of Models and Manufacturers (RLMM) of Wind Turbines issued by NIWE (National Institute of Wind Energy).
A Small Hydro Project (SHP) is the development of hydroelectric power which harnesses energy from flowing or falling water from rivers, rivulets, artificially created storage dams or canal drops for generation of electricity. The capacity of SHP is up to 25 MW.
Project capacity greater than 25 MW are termed as Large Hydro Projects.
The estimated potential of 21,135.37 MW from 7,135 sites for power generation has been assessed by AHEC of IIT Roorkee. The hilly States of Arunachal Pradesh, Himachal Pradesh, Jammu & Kashmir and Uttarakhand constitute around half of this potential. Other potential States include Maharashtra, Chhattisgarh, Karnataka and Kerala. India also has a potential of large hydro capacity of 1,45,320 MW.
The applicable rate of interest for hydro projects varies based on internal credit rating (from Grade-I to Grade-V). For details, visit www.ireda.in.
Yes, IREDA provides financing to takeover hydro projects as per IREDA's financing guidelines, risk perception, nature of industry and background of each case.
For details of subsidy available if any, please contact MNRE.
The moratorium period would be up to 6 months to 1.5 years from the date of COD of the project.
Yes, IREDA provides finance for large hydro projects and the loan amount is normally up to 70% of the total project cost. Loan up to 80% may also be considered depending on qualification to certain additional criteria as defined in financing guidelines of IREDA and viability of the project.
The repayment period shall be maximum up to 25 years or within 85% of the balance useful life period as per CERC.
Electric Vehicle (EV) Segment
It is a type of vehicle propelled by electric motors unlike normal internal combustion engines (ICE). The heart of an EV lies in its batteries — commonly referred to as EV batteries — from where the automobile extracts energy to power itself.
Niti Aayog forecasts EV sale penetration of 80% for two and three-wheelers, 50% for four-wheelers, and 40% for buses by 2030. Development of robust manufacturing and deployment infrastructure for green-mobility and charging infrastructure shall play a major role.
IREDA has financed many Electric Fleet projects, Extended Lines of Credit to NBFCs towards EV, EV Manufacturing projects, Battery Swapping & Charging Infrastructure etc. in different parts of the country.
It varies from project to project and risk perception. IREDA loan quantum goes up to 80% of the appraised project cost for EV Fleet & Charging Infrastructure proposals and 70% for EV Manufacturing facilities.
- Up to 80% of residual value of the contract or 8 Years, whichever is lower — EV Fleet Proposals
- Up to 7 years — EV Manufacturing facilities
- Up to 10 years — EV Charging Infrastructure
Moratorium / grace period is the period during which borrower repays only interest on loan availed. Maximum moratorium for EV Manufacturing facilities is up to 1.5 years and up to 1 year for EV Fleet / Charging Infrastructure proposals.
IREDA primarily obtains Mortgage of immovable assets, Hypothecation over movable properties and assets including plant & machinery, Charge on project cash flows / receivables, 2 Quarter DSRA. Additional securities include Collateral security equivalent to 10% of loan, Corporate and/or Personal Guarantees, Pledge of shares (minimum 51%), 3rd party Guarantee, PDCs / NACH, Demand Promissory Note, BG/FDR for not less than 10% of loan etc., based on risk perception and IREDA financing norms.
Smart Metering / Advanced Metering Infrastructure Segment
Smart meters are a new generation of energy meters that allow learning about consumer's consumption pattern and help utilities conduct system monitoring and customer billing without manual intervention. AMI enables two-way communication between the meter and the utility, allowing real-time monitoring, grid management, and detection of outages, thefts, leakages and more.
The Government of India has launched the Smart Meter National Programme aiming to replace 25 crore conventional meters with smart meters. The Revamped Distribution Sector Scheme (RDSS), launched in 2021 with an outlay of ?3,03,758 crore, aims to reduce AT&C losses to 12–15% and eliminate the ACS–ARR gap by 2024–25.
IREDA has financed a Smart Metering project and few others are under pipeline for sanction in different parts of the country.
The quantum of loan from IREDA shall be normally up to 70% of the total project cost.
IREDA primarily obtains hypothecation over movable properties pertaining to smart meter project, Charge on project cash flows / receivables / escrow account, 2 Quarter DSRA, assignment of project documents. Additional securities include Collateral security, Corporate and/or Personal Guarantees, Pledge of shares (minimum 51%), PDCs / NACH, BG/FDR etc., based on risk perception and IREDA financing norms.
Green Hydrogen & Derivatives
Green hydrogen means hydrogen produced using renewable energy, including production through electrolysis or conversion of biomass. Non-biogenic greenhouse gas emissions shall not be greater than 2 kg CO2-eq per kg of Hydrogen, taken as an average over the last 12-month period.
Green hydrogen derivatives are products derived from green hydrogen such as green ammonia, green methanol etc.
Government has launched the National Green Hydrogen Mission to make India the global hub for production, usage and export of Green Hydrogen. The Government is providing subsidies under the Mission. Details can be found on the MNRE website.
IREDA provides term loan assistance up to 70% of the eligible project cost.
Yes, from reputed consultants involved in the sector.
IREDA normally obtains charge on project assets and revenue stream of project as securities. Additional securities are also obtained based on risk perception and as per financing norms.
Up to 80% of the balance concessionaire / agreement period for green hydrogen / derivatives projects where the end product is green hydrogen / derivative.
Moratorium / grace period available for green hydrogen / derivatives projects is 1.5 years.
Biomass Power: Direct combustion power projects having capacity of 1 to 10 MW with minimum steam generation pressure of 63 kg/cm² are eligible. IREDA loan will be restricted to 7.5 MW capacity.
Biomass Cogeneration: Small scale Cogeneration Projects (except sugar industries) up to 7.5 MW with steam generation pressure of 63 kg/cm² are eligible. Projects above 7.5 MW (both sugar and non-sugar industry) with 63 kg/cm² are also eligible. IREDA also has additional / bridge loan scheme for SDF supported Bagasse based Cogeneration projects.
Biomass Cogeneration: Small scale Cogeneration Projects (except sugar industries) up to 7.5 MW with steam generation pressure of 63 kg/cm² are eligible. Projects above 7.5 MW (both sugar and non-sugar industry) with 63 kg/cm² are also eligible. IREDA also has additional / bridge loan scheme for SDF supported Bagasse based Cogeneration projects.
Yes, consultants who are involved in the power sector are preferred.
Project should have been registered with IREDA. Detailed project report along with cost estimates and other relevant information & clarifications as requested by IREDA should have been submitted / clarified.
For eligibility requirements please refer to the General Eligibility Conditions of IREDA's Financial Guidelines.
For security requirements please refer to Security (Project Financing Scheme) of IREDA's Financial Guidelines.
Normally, IREDA sanctions a project within 90 days of registration, provided complete details / papers are submitted by the applicant and the project is found viable from technical, financial and legal point of view.
Four projects with the cumulative capacity of approximately 30 MW are in operation in different parts of India.
- Mass incineration
- Pelletisation / RDF & Combustion
- Anaerobic Digestion
Any Bio-waste from Industrial sector (excluding Rice husk, bagasse, straw, stalks) is eligible under the sector.
No. However, mixing of other biomass wastes up to 25% with industrial wastes is allowed for power generation.
No.
Bio-fuels are renewable liquid fuels derived from biological materials by a number of chemical / biological processes.
- Renewable in nature
- Environment friendly
- Reduced dependence on fossil fuels
- Increased agricultural economy and rural employment
- Ethanol — primarily for blending with petrol
- Bio-diesel — for blending with diesel
Ethanol — Three categories:
- Sugar based — sugar cane, sugar beet, sweet sorghum etc.
- Starch based — wheat, rice, corn, barley, potatoes, cassava etc.
- Cellulose based — agro-waste, bagasse, rice husk, straw etc.
Yes, IREDA has already financed some ethanol projects.
Ethanol and bioethanol are chemically exactly the same — a simple alcohol. Ethanol is the name of the substance itself however it is made, whereas bioethanol refers specifically to a fuel produced by fermentation of a biomass containing sugars and distilling the ethanol from it.
- Renewable, non-toxic resource
- Biodegradable
- Mitigates global warming
- Helps reduce greenhouse gas emissions
- Reduces dependence on crude oil
- Reduces air pollution
- Creates new jobs in agricultural and ethanol production industries
Bioethanol projects are categorised as 1G (sugar/starch materials), 2G (inedible farm waste like corn cobs, rice husks, wheat straw, bagasse), and 3G (algae grown in wastewater, sewage or salt water) based on the source of raw material.
The Ethanol Blending Programme (EBP) seeks to achieve blending of Ethanol with motor spirit to reduce pollution, conserve foreign exchange and increase value addition in the sugar industry. The Central Government has scaled up blending targets from 10% to 20% by 2025.
The government is extending financial assistance in the form of interest subvention at 6% per annum or 50% of the rate of interest charged by banks, whichever is lower, on loans for 5 years including one-year moratorium, for 1G ethanol projects through Department of Food & Public Distribution.
IREDA till date has financed many First-generation (1G) Bio-Ethanol projects, both from sugar containing materials and starch containing materials located in different parts of the country.
IREDA loan quantum goes up to 95% of the appraised project cost.
The repayment period shall be maximum up to 7 years including moratorium / grace period, depending on the project cash flows, DSCR etc. In case of consortium / co-financing, terms can be aligned with lead FI / Banks.
The maximum moratorium / grace period available for Biofuels projects is up to one year.
IREDA primarily obtains charge on project assets and revenue stream of project as securities. Additional securities such as Collateral security equivalent to 10% of loan, Corporate and/or Personal Guarantees, Pledge of shares (minimum 51%), 3rd party Guarantee, PDCs / NACH, BG/FDR for not less than 10% of loan etc., are also obtained based on risk perception and IREDA financing norms.
When the specific energy consumption (units of energy consumed per unit of output) of a device or equipment is improved by changing the technology deployed, it is termed as improving energy efficiency. For example, changing an incandescent lamp to a CFL results in the same illumination level with less power consumption.
In case of energy conservation, the main technology remains unchanged however energy wastage is minimised by plugging unproductive use of energy. For example, incorporating a movement sensor or dusk-to-dawn timer on an incandescent lamp conserves energy while the underlying technology stays the same.
Demand Side Management (DSM) applies energy efficiency / conservation at the point where energy is consumed. DSM has been found more effective than Supply Side Management due to transmission / distribution losses. DSM initiatives also help flatten the demand curve of utilities, reducing the need for peak power generators.
A company that offers to reduce a client's energy costs, often with the cost savings being split with the client through an energy performance contract (EPC) or a shared-savings agreement.
a) Active or efficient in-house management through maintenance and housekeeping — involves no or minimal investments. b) Replacement / Retrofit of selected equipment — requires medium-size investments. c) Process Revamping or modification of entire manufacturing processes — requires large-scale investments.
IREDA finances end user energy efficiency retrofit projects, DSM Projects taken up by utilities, projects promoted by ESCOs and power plants based on recovery of energy from exhaust gases. IREDA also extends lines of credit to financial intermediaries to on-lend / lease energy saving equipment.
No. Any equipment / device / system which contributes to energy saving shall be considered by IREDA for financing.
Yes (except for cases where established energy saving items such as LED lamps etc. are being proposed).
No. However, it is always better to employ energy auditors accredited by other agencies such as Bureau of Energy Efficiency, PCRA etc.
No. Energy saving measures in plants based on both fossil fuels as well as renewable fuels are eligible for IREDA financing.