Federal Bank has partnered with Ecofy, a green-focused non-banking financial company backed by Eversource Capital, to provide financing solutions for Micro, Small and Medium Enterprises (MSME) investing in commercial rooftop solar installations. The programme aims to finance 3,600 kW of rooftop solar installations annually, benefiting MSMEs and reducing over 2,500 tonnes of carbon emissions each year.
The partnership will focus on addressing financial challenges faced by MSMEs, particularly for solar installations in the 20-200 kW range, a segment traditionally underserved by financial institutions. Federal Bank’s MSME loans comprise over 20 per cent of its total loan book, with the bank offering specific green loan schemes to support solar and other green initiatives.
In April 2024, Ecofy partnered with Waaree Energies Limited, investing Rs 1 billion to provide affordable financing for homeowners and MSMEs installing rooftop solar systems, helping to accelerate the solarisation of over 10,000 rooftops under the PM Surya Ghar Yojana.