#orb energy

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Orb Energy & Mabati Rolling Mills Partner to Drive Kenya’s Solar Transition

Orb Energy, a leading provider of solar energy solutions in India and Africa, has partnered with Mabati Rolling Mills (MRM).

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Orb Energy (“Orb”) announced that it has successfully installed and commissioned a 700-kilowatt rooftop solar system (350kWp as phase 1 in t

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The Future of Solar Energy in India: Projections for 2025

India stands at the cusp of a renewable energy revolution, with solar energy playing a pivotal role in shaping the nation’s energy future. As the country aims to achieve 500 GW of renewable energy capacity by 2030, projections for 2025 indicate significant advancements and transformations in the solar sector. This blog delves into the key trends, government initiatives, and technological innovations that are set to define the future of solar energy in India.

Ambitious Targets and Growth Projections

By 2025, India is expected to have over 200 GW of installed solar capacity, marking a substantial increase from approximately 94 GW as of early 2024. The government’s commitment to renewable energy is evident through various initiatives aimed at bolstering solar power generation. The National Solar Mission continues to drive efforts to position India as a global leader in solar energy, with ambitious targets that include significant investments in infrastructure and technology.

Rooftop Solar: A Game Changer

Rooftop solar installations are anticipated to surge as urban areas seek decentralized energy solutions. The government has introduced several incentives, such as subsidies and net metering policies, to encourage homeowners and businesses to adopt rooftop solar systems. This shift not only reduces dependence on conventional power sources but also empowers consumers to generate their own electricity.

Technological Innovations Leading the Way

Advancements in solar technology are crucial for enhancing efficiency and reducing costs. High-efficiency photovoltaic (PV) modules with increased power density are expected to redefine the economics of solar energy in India. Innovations such as bifacial panels and integrated solar-storage solutions will further enhance the viability of solar projects across various sectors.

Government Initiatives Driving Growth

The Indian government has implemented several transformative policies to support the growth of solar energy:

Production-Linked Incentives (PLI): Aimed at boosting domestic manufacturing of solar panels and components, reducing reliance on imports.

Solar Park Scheme: The establishment of large-scale solar parks across states facilitates easier project development and grid connectivity.

PM Surya Ghar Muft Bijli Yojana: This initiative aims to provide free electricity through rooftop solar systems for economically weaker sections, promoting inclusivity in energy access.

These policies reflect a comprehensive approach to overcoming barriers in the solar sector while fostering an environment conducive to investment and innovation.

Investment Trends and Economic Impact

Projections indicate that investments in India's renewable energy sector could double by 2025, reaching over $32 billion. This influx of capital is expected to drive job creation, enhance technological capabilities, and stimulate economic growth. The increasing participation of private players alongside government initiatives highlights a collaborative effort towards achieving sustainability goals.

Environmental Benefits and Sustainability Goals

The expansion of solar energy capacity is integral to India’s commitment to reducing carbon emissions and addressing climate change. By transitioning towards cleaner energy sources, India aims to meet its Nationally Determined Contributions (NDCs) under the Paris Agreement, targeting 50% of total electricity generation from non-fossil fuel sources by 2030.

Conclusion: A Bright Future Ahead

As we look towards 2025, the future of solar energy in India appears promising. With strong government support, technological advancements, and increasing public awareness about renewable energy benefits, India is poised for a significant transformation in its energy landscape. The journey towards achieving ambitious renewable energy targets will not only enhance energy security but also contribute positively to economic growth and environmental sustainability.

At Orb Energy, we are excited about being part of this transformative journey, providing innovative solar solutions that cater to the evolving needs of our customers while contributing to a sustainable future for India.

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Solar Power Financing Options for Businesses: An Overview

Introduction:

In the drive toward decarbonization, businesses are increasingly adopting solar energy to reduce their reliance on traditional power sources. With electricity prices rising and discoms (distribution companies) charging industrial consumers an average of Rs. 8/unit across most states, solar power is becoming an attractive solution for companies looking for a cost-effective and sustainable energy alternative.

By investing in solar energy, businesses can enjoy lower energy costs, insulation from future energy price hikes, and a stronger sustainability profile—a growing priority for consumers and investors alike. This article explores the financing options available for commercial and industrial (C&I) solar projects, focusing on how companies can benefit from both capital expenditure (CAPEX) and operational expenditure (OPEX) models to fund their transition to using more solar power.

Why Invest in Solar for Your Business? The benefits of solar panel financing for businesses

Cost Savings One of the most significant advantages of solar panel financing is the immediate and long-term savings on your electricity bill. Using solar power can significantly cut or even eliminate electricity bills. Despite the high initial costs, businesses can often enjoy lower, long-term power bills, resulting in significant savings. In particular with the help of financing, the savings can outweigh the up-front costs by a considerable margin.

Energy Independence With solar power, businesses become less reliant escalating energy prices and the grid, which leads to more predictable and stable operating costs. Additionally, solar power can help businesses gain a competitive edge by allowing them to reduce their energy costs, and become more attractive to their potential customers.

Environmental Impact Solar power is a cleaner, more sustainable alternative to fossil fuels. By switching to solar energy, businesses can dramatically reduce their carbon footprint and demonstrate a commitment to corporate social responsibility.

Branding Opportunities Companies that adopt solar power can enhance their reputation as environmentally responsible businesses. Consumers and investors are increasingly drawn to brands that prioritize sustainability, making solar energy a valuable marketing tool.

Solar Financing Options for Businesses (Commercial and Industrial)

The upfront cost of installing solar panels often deters companies from going solar, but there are multiple financing options now available to ease this burden. In terms of rooftop solar financing, there are several options available. Solar vendors also offer financing options along with their rooftop solar products, not just nationalized banks and NBFCs. A number of regional sahakari banks also lend money to these rooftop solar projects at attractive interest rates.

Solar Loans from Banks and Other Financial Institutions There have been a variety of financial institutions entering the solar market over the years, illustrating the sector’s maturity in terms of financing. Typically, solar projects are funded with a combination of equity and debt.

Some of the most popular C&I solar financing methods and products by banks and other finance institutions are term loans, working capital loans, bridge loans and lines of credits.

Solar loans offer static interest rates that can range from 5 to 10 years, and allow businesses to own their solar systems after completion of their loans without any reservations.

Other options such as:

Power Purchase Agreements (PPAs) A third-party provider owns, installs, and maintains the solar system, under a PPA. Solar per unit is priced lower than the current utility rate, which provides immediate savings.

Solar Leases Solar leases involve a third party owning the system, similar to PPAs. Businesses pay a fixed monthly lease payment unlike buying the electricity which also eliminates upfront costs and provides predictable monthly expenses.

Property Assessed Clean Energy (PACE) Financing A government-backed program which is tied to the property rather than the business, with terms often extending up to 30 years.

Commercial Green Loans Green loans are specifically designed for energy-efficient projects, including solar installations through some banks and financial institutions.

Challenges for MSMEs in Solar Financing

Micro, Small, and Medium Enterprises (MSMEs) face unique challenges when accessing solar financing. The high upfront cost of rooftop solar systems, combined with difficulties in securing financing, has been a significant barrier. Financial institutions often prefer borrowers with strong credit histories, leaving many MSMEs unable to tap into the available resources.

Key challenges include:

Lack of creditworthy MSMEs: Due to a lack of historical financial data and payment track records, lending institutions can be hesitant to lend to MSMEs. This lack of data makes it difficult for lenders to assess the risk of lending to MSMEs. As a result, MSMEs often have difficulty accessing capital, which affects their ability to grow and expand.

Inability to Provide Collateral: To mitigate risks, banks impose strict lending criteria, often requiring collateral, particularly for larger loans. However, many MSMEs struggle to provide adequate collateral. In many cases, their existing assets are already pledged, making it challenging for them to secure additional loans.

Long-term concerns regarding MSMEs’ stability: In some cases, determining the future viability and sustainability of an MSME’s business can be difficult, which makes lenders wary of lending to them.

Financing Trends for Solar

Over the past few years, the number of rooftop solar lenders has more than doubled in the MSME segment. Loan disbursing entities include public and private sector banks as well as non-banking financial companies and solar vendors themselves. In addition, some international investment firms are offering rooftop solar financing options to MSMEs.

Orb Energy’s In-House Solar Financing Solutions for MSMEs

Orb Energy offers a one-stop, vertically integrated solution, covering everything from financing to installation and maintenance. Orb has financed close to 100MW of solar systems under its in-house financing model, benefiting approximately 300 customers so far.

Key features of Orb’s financing solutions include:

No Collateral Requirement

Flexible Down Payments: 0-25%

Competitive Interest Rates: 12% (reducing)

Flexible Tenure: 6 months to 6 years

Quick Loan Disbursal: 7-10 days

No Prepayment or Pre-closure Charges

With Orb’s financing options, businesses can immediately start saving on electricity, paying Equated Monthly Installments (EMIs) that are less than their current monthly electricity bills – meaning they start saving on day one!

CONCLUSION

There are several advantages for businesses that choose to invest in solar energy:

lower electricity bills;

fixed electricity costs into the future and better predictability of costs;

increased sustainability credentials;

superior brand recognition.

To help manage their budgetary requirements businesses can now choose from a wide range of solar power financing alternatives. There has never been an easier time to switch to solar electricity, whether it is through cash purchases, solar loans, PPAs, leases, PACE financing, or green bonds.

If you’re a business owner thinking about going solar, it’s important to research the available financing options to see which one will work best for your organization. To begin your path towards a sustainable future right now, please feel free to get in touch with Orb Energy for a no-obligation commercial solar evaluation, and to learn more about our specialized solar financing choices.

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Shell acquires 20 percent stake in solar firm Orb Energy

#Shell acquires 20 percent stake in #solar firm #OrbEnergy #ClimateSamurai #SolarNews

Orb Energy has announced that Shell’s New Energies business has acquired an almost 20% stake in the firm in its latest funding round. The fresh investment will help more Indian SMEs – a largely underserved part of the market – benefit from lower-cost solar power.

Orb Energy offers SMEs credit to invest in their own rooftop solar systems, driving Orb Energy’s growth in sales and helping…

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