Federal Bank and Ecofy collaborate to finance MSME solar projects

Federal Bank has partnered with Ecofy, a green-focused NBFC backed by Eversource Capital, to offer financing solutions for MSMEs investing in rooftop solar installations.

The program targets financing 3,600 kW of rooftop solar annually, focusing on installations in the 20-200 kW range, a segment often underserved by lenders. 

This initiative is expected to reduce over 2,500 tonnes of carbon emissions each year while addressing MSMEs’ financial barriers.

Federal Bank, with MSME loans comprising over 20 per cent of its loan book, provides dedicated green loan schemes for solar and sustainability initiatives. 

Earlier in April 2024, Ecofy partnered with Waaree Energies Limited, investing Rs 1 billion to solarise over 10,000 rooftops under the PM Surya Ghar Yojana.