Are banks interested in financing solar power projects?
The Debt Service Coverage Ratio (DSCR) works out to an average of 1.49 which is considered quite acceptable to commercial banks for sanction of loan. The maximum debt that is permitted as per CERC norms is 70% and most banks should be find this acceptable based on the financial strength and net worth of the company / promoters. The present policy driven by the National Solar Mission and PPA for 25 years with a central PSU like NTPC’s subsidiary should provide adequate confidence to Banker to finance solar power projects.
