Luminous Power Technologies has entered into a strategic partnership with the Small Industries Development Bank of India to expand access to affordable solar financing for micro, small and medium enterprises (MSMEs) across India.

Under the memorandum of understanding (MoU), MSMEs will be able to avail structured loans of up to ₹50 crore, with repayment tenures extending up to 10 years. The initiative is designed to address capital constraints that often limit the adoption of rooftop solar and other clean energy solutions among small businesses.

The financing framework offers interest subsidies of up to 2% on loans up to ₹22 crore, reducing effective borrowing costs to as low as 6.7%. This makes solar investments more financially viable for MSMEs, enabling them to lower operational costs and improve long-term energy efficiency.

Loan processing under the partnership will be largely digital, requiring minimal documentation, with approvals expected within seven days. The model also allows for up to 100% project funding, supported by SIDBI fixed deposit receipts as cash collateral, along with concessional interest rates linked to borrower credit profiles.

As part of the collaboration, Luminous will leverage its nationwide network of over 350 service centres to deliver end-to-end solar solutions, including system design, installation, and maintenance. SIDBI, on the other hand, will provide tailored institutional financing to support MSMEs throughout the project lifecycle.

The partnership is expected to significantly accelerate rooftop solar adoption among MSMEs, helping businesses reduce electricity costs while contributing to India’s broader clean energy transition. It also reflects a growing emphasis on innovative financing models to drive decentralised renewable energy deployment across the country.