Federal Bank, a leading private sector bank in India, has announced a strategic partnership with Ecofy, the country’s first green-only NBFC backed by Eversource Capital, to empower MSMEs with innovative financing solutions for commercial rooftop solar installations. This collaboration is among the first comprehensive co-lending initiatives aimed at addressing the solar financing needs of the MSME sector.
The program aims to finance 3,600 kW of rooftop solar installations annually, enabling MSMEs to significantly reduce electricity costs while cutting over 2,500 tons of CO2 emissions each year. This initiative supports India’s decarbonization goals and fosters sustainable business practices.
Shalini Warrier, Executive Director at Federal Bank commented, “This collaboration with Ecofy represents our commitment to supporting sustainable business practices. By offering accessible financing for commercial rooftop solar equipment, we are empowering MSMEs to reduce electricity costs while at the same time contributing meaningfully to India’s climate goals”
Commenting on this alliance, Rajashree Nambiar, Co-founder, Managing Director & CEO at Ecofy said, “The MSME sector represents a critical segment in India’s economic landscape, yet there are significant challenges in adopting sustainable energy solutions. Our partnership with Federal Bank is strategically designed to unlock financing opportunities for solar installations in the 20-200 KW range, which has historically been a challenging lending whitespace for financial institutions.”
Federal Bank’s MSME loans already comprise over 20% of its total loan portfolio. The bank’s dedicated green loan schemes further underscore its commitment to supporting sustainable initiatives. This co-lending arrangement with Ecofy aligns with its vision to drive decarbonization efforts across industries.
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Ecofy, with its proven expertise in residential and commercial solarization, has partnered with leading OEMs like Tata Power, Waaree, Luminous, and Mahindra Solarize, as well as over 1,000 EPC partners. This collaboration is set to address financial constraints that have long hindered MSMEs from transitioning to renewable energy.
The Federal Bank-Ecofy partnership marks a significant step towards enabling MSMEs to embrace green energy while contributing to India’s broader sustainability goals.
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