How MSMEs can afford rooftop solar without upfront cost
Date:17-Nov-2025, Author: Orb Energy
For most MSMEs in India, electricity is among their top three operational expenses. With rising electricity costs and competitive market pressures, many MSMEs are looking for sustainable ways to manage their power bill. Rooftop solar has become an increasingly attractive option for MSMEs, because it can lower their electricity bills and improve their sustainability.
However, one major concern continues to hold back widespread adoption: the upfront investment. According to industry research, MSMEs can reduce their electricity bills by up to 80 percent with rooftop solar. Yet many hesitate to invest because of the initial cost burden and the perception that there are limited options for affordable credit.
Finance for Rooftop Solar for MSMEs
Many MSMEs already have access to finance for rooftop solar. For instance, there are loans available from banks such as SBI or the Small Industries Development Bank of India (SIDBI). These banks offer loans at interest rates starting from 8% up to 10% depending on an MSME’s credentials. Though the interest rates are lower from these banks, such banks typically require other assets as collateral. Private banks also offer loans, but the interest rates are higher with higher processing fees, and these banks often need collateral as well.
Alternative to Bank Financing: Orb Energy
Outside of government and private sector banks, MSMEs can also turn to solar vendors, such as Orb Energy, for alternative financing options. Orb Energy has been financing its MSME customers for more than 8 years now and disbursed more than ₹ 300 crores.
What Orb Energy does differently:
- No down payment required
- No collateral required
- Processing time in just 7 days (if all documents available)
- Affordable EMI – the EMI paid to Orb is typically less than the savings from solar
- No pre-closure charges
This approach transforms solar adoption into a practical business decision rather than a financial challenge.
The Impact
Orb Energy has already enabled hundreds of MSMEs across India to install rooftop solar systems with its innovative financing model, helping them cut electricity costs, while improving their sustainability.
For example, a manufacturing unit in Maharashtra that opted for a financed solar system by Orb Energy has seen a reduction of over 60% lower electricity costs within its first year of operation, and the savings from their rooftop solar system are greater than the EMIs they pay to Orb. Similar outcomes are seen among other MSMEs across India that are using Orb’s solar finance to manage expenses while improving sustainability.
The way forward
Adopting rooftop solar is no longer limited to large corporations. With the right financing, MSMEs can enjoy long-term energy savings, enhance competitiveness, and contribute to India’s clean energy goals. Orb Energy’s in-house, collateral-free solar financing ensures that even smaller businesses can make this transition confidently, without the strain of upfront investment.
Are you considering solar panels for your business? Orb Energy is here to help. Fill in the form for a free consultation.