By Sharda Associates | CA Firm, Bhopal
Solar energy is no longer just a green choice in India. In 2026 it is a financially smart business decision. With the government pushing hard toward its renewable energy targets through MNRE, PM Surya Ghar, and PM KUSUM schemes — entrepreneurs, farmers, businesses, and developers across India are setting up solar plants of all sizes to generate electricity, reduce costs, and sell power back to the grid.
But when you approach a bank for a solar plant loan — whether for a rooftop system, a ground-mounted solar farm, or an agriculture solar pump under PM KUSUM — the bank asks for a Feasibility Report. The loan amount (including borrower’s margin) will be disbursed directly to the vendor or EPC contractor upon submission of all required feasibility reports as mandated by MNRE. This makes the Feasibility Report not just a documentation requirement but a literal disbursement prerequisite.
At Sharda Associates, a qualified CA firm based in Bhopal, Madhya Pradesh, we prepare CA-certified feasibility reports for solar plant bank loan applications—accepted by SBI, PNB, Bank of Baroda, and all major banks and NBFCs financing solar projects across India. Our CA team has prepared over 45,500 reports for businesses across sectors including renewable energy — and we understand exactly what MNRE-aligned feasibility documentation requires.
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What is MNRE and Why Does It Matter for Your Solar Loan
MNRE stands for Ministry of New and Renewable Energy. It is the central government body in India responsible for promoting clean energy sources like solar, wind, biomass, and hydro power. MNRE designs national-level policies, approves subsidy programs, and works with state agencies to implement renewable energy solutions for homes, businesses, and public infrastructure.
For solar plant financing MNRE’s role is direct and critical. The subsidies available under PM Surya Ghar, PM KUSUM, and Grid Connected Rooftop Solar programmes are all MNRE-backed schemes. And banks financing solar projects under these schemes require feasibility documentation that meets MNRE’s technical and financial standards before disbursing funds.
This means your Feasibility Report is not just a generic financial document — it must specifically address the technical requirements set by MNRE, the subsidy structure applicable to your project, the generation projections based on actual solar irradiance data for your location, and the financial viability of the project over its 25-year useful life.
MNRE Solar Schemes — Which One Applies to Your Project
Understanding which MNRE scheme covers your solar project determines what your Feasibility Report must cover and what bank documentation is required.
PM Surya Ghar Muft Bijli Yojana
PM Surya Ghar is MNRE’s flagship residential rooftop solar scheme. It provides central financial assistance of 40 percent for systems up to 3 kW capacity and 20 percent for capacity between 3 kW and 10 kW. The subsidy is credited directly to the beneficiary’s bank account after verified installation.
For PM Surya Ghar the loan amount including borrower’s margin is disbursed directly to the vendor or EPC contractor upon submission of all required feasibility reports. Banks provide collateral-free solar loans at interest rates around 7 percent with a maximum tenure of 120 months including a 6-month moratorium period.
Best for — residential homeowners, housing societies, and RWAs installing rooftop solar up to 10 kW.
Grid Connected Rooftop Solar Programme — Phase II
This MNRE programme is available for commercial, industrial, and institutional consumers wanting to install rooftop solar above residential capacities. Group Housing Societies and Resident Welfare Associations can apply for subsidy on capacity up to 500 kW.
For banks financing these projects a Feasibility Report covering technical assessment, generation projections, financial returns, and payback period is mandatory before loan sanction.
PM KUSUM — Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan
PM KUSUM is specifically designed for farmers, FPOs, cooperatives, panchayats, and local institutions. It has three components covering ground-mounted solar power plants of 500 kW to 2 MW, standalone solar agriculture pumps, and solarisation of grid-connected agriculture pumps.
Under PM KUSUM Component A the government provides 30 percent Central Financial Assistance on the benchmark cost. The state government gives at least 30 percent subsidy. Bank finance can be availed by the farmer so that the farmer has to initially pay only 10 percent of the cost — with the remaining up to 30 percent as a bank loan.
For PM KUSUM loans the bank requires a complete Feasibility Report covering technical assessment of the solar plant, generation projections, revenue from power sale to DISCOM at the approved feed-in tariff, financial projections over the 25-year project life, and DSCR calculation for the loan repayment period.
Best for — farmers, FPOs, and cooperatives in Madhya Pradesh and across India wanting to set up solar plants and earn income from power sale.
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What is a Feasibility Report for Solar Plant Bank Loan
A Feasibility Report for a solar plant bank loan is a comprehensive document that evaluates your solar project from all the angles a bank and MNRE need to assess before approving financing. It is not a sales brochure for solar energy. It is a structured technical and financial analysis that answers every question the bank’s credit team will have about your specific project.
The Feasibility Report differs from a standard business Feasibility Report in one important way — it must incorporate solar-specific technical parameters including plant capacity in kW or MW, panel specifications and ALMM compliance, inverter specifications, shadow analysis, solar irradiance data for your specific location, plant load factor, and expected annual energy generation — all grounded in actual technical data, not estimates.
This is why solar plant Feasibility Reports require a CA firm with specific renewable energy project experience — not a generic document preparation service.
At Sharda Associates our CA team prepares solar plant Feasibility Reports that cover all the technical inputs required by MNRE-aligned banks — with financial projections built on verified generation data for your specific location in Madhya Pradesh or across India.
What a Complete Solar Plant Feasibility Report Must Cover
Every Feasibility Report we prepare at Sharda Associates for solar plant bank loan applications covers all five types of feasibility — adapted specifically to the requirements of solar energy projects.
Technical Feasibility
Technical feasibility for a solar plant covers the following elements specifically.
Plant capacity assessment covering the proposed installed capacity in kW or MW, panel configuration, inverter sizing, and mounting structure design. All solar panels must be BIS-certified and on MNRE’s Approved List of Models and Manufacturers — ALMM listing. Using components not on the ALMM list voids MNRE subsidy eligibility and may invalidate your bank’s security.
Solar irradiance analysis covering the annual Global Horizontal Irradiance — GHI — and Direct Normal Irradiance — DNI — for your specific project location. Madhya Pradesh receives among the highest solar irradiance in India — making MP-based solar projects particularly financially attractive. Bhopal, Indore, Gwalior, and most of central MP receive annual GHI of 5.5 to 6.0 kWh per square metre per day.
Plant Load Factor calculation — the actual annual energy generation as a percentage of the theoretical maximum generation at full capacity. A typical ground-mounted solar plant in MP achieves a PLF of 18 to 22 percent. This figure directly determines your annual energy generation and revenue projections.
Shadow analysis and site assessment covering roof orientation for rooftop solar, shading from surrounding structures and trees, structural load capacity of the roof, grid connection proximity, and land availability for ground-mounted plants.
Grid connectivity and DISCOM approval — the DISCOM conducts a technical feasibility assessment checking transformer capacity for the proposed solar connection before issuing technical sanction for grid connection. Your Feasibility Report must address this requirement.
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Economic Feasibility
Economic feasibility for a solar plant is calculated differently from a conventional business — because the revenue model is based on electricity generation rather than product or service sales.
Revenue sources covered include self-consumption savings — the value of electricity generated and consumed on-site, replacing grid electricity at the prevailing tariff rate. Net metering credits — the value of excess electricity exported to the grid under net metering arrangements. Feed-in tariff revenue for ground-mounted plants selling power to DISCOM under PM KUSUM Component A. Renewable Energy Certificate — REC — income for larger plants where applicable.
Project cost analysis covers solar panels with current market pricing from ALMM-listed suppliers, inverters, mounting structures, electrical balance of plant, civil works, grid connectivity charges, commissioning costs, and operation and maintenance costs for the 25-year project life.
Financial projections covering annual energy generation in kWh, annual revenue from self-consumption savings and surplus power sale, annual operation and maintenance expenses, loan repayment schedule, and net cash flow for every year of the loan repayment period.
DSCR calculation for every repayment year — verified against your specific bank’s minimum threshold of 1.25. Solar projects have a unique DSCR profile because revenue is relatively stable and predictable — making a well-prepared solar Feasibility Report more likely to show consistent DSCR above the minimum than many conventional business loans.
Payback period calculation — most residential and commercial solar projects in India achieve payback within 3 to 7 years, with free electricity generation for the remaining 18 to 22 years of the panel’s useful life.
Operational Feasibility
Operational feasibility for a solar plant covers the O&M — operation and maintenance — plan for the 25-year project life, the EPC contractor’s credentials and track record, AMC arrangements with the system supplier, cleaning and upkeep schedule for panels, monitoring system for real-time performance tracking, and the warranty terms on panels, inverters, and mounting structure.
Banks want to know that the solar plant will operate reliably for the full loan tenure — because the loan is being repaid from the electricity savings and revenue the plant generates.
Scheduling Feasibility
Scheduling feasibility covers the project implementation timeline from loan sanction to commissioning. A typical solar project implementation timeline is 30 to 90 days from sanction depending on system size — significantly faster than most conventional business investments. This means revenue generation begins quickly after loan disbursement — which is why banks generally have greater confidence in solar project repayment compared to many other loan types.
Legal and Regulatory Feasibility
Legal feasibility covers all required regulatory approvals — DISCOM technical sanction for grid connection, net metering agreement with the DISCOM, environmental clearances for large ground-mounted plants, roof ownership or rights documentation for rooftop installations, and land documents for ground-mounted plants.
Subsidy Structure for Solar Plants 2026
Understanding the subsidy structure helps you structure your Feasibility Report correctly — particularly the means of finance table and the DSCR calculation.
For PM Surya Ghar residential rooftop solar the subsidy is 40 percent for systems up to 3 kW and 20 percent for systems between 3 kW and 10 kW. The subsidy is a Direct Benefit Transfer credited to the beneficiary’s bank account after verified installation.
For PM KUSUM Component A ground-mounted solar plants the Central Financial Assistance is 30 percent on the benchmark cost. State government provides at least 30 percent. The farmer contributes 10 percent and takes a bank loan for the remaining up to 30 percent of project cost.
For PM KUSUM Component B standalone solar agriculture pumps the central subsidy is 30 percent, state subsidy is at least 30 percent, and the farmer’s share is up to 40 percent — of which bank finance can cover up to 30 percent.
The subsidy is credited after commissioning — not upfront. Your Feasibility Report’s financial projections must correctly show the project economics both before and after subsidy credit — and the loan repayment must be viable from project revenue before the subsidy is adjusted.
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Solar Plant Feasibility Report vs Standard Feasibility Report
Many entrepreneurs assume that a standard business Feasibility Report can be adapted for a solar plant bank loan. This is a costly mistake.
A standard business Feasibility Report focuses on market demand, product pricing, customer acquisition, and operational management. For a solar plant none of these parameters apply in the same way.
A solar plant Feasibility Report is fundamentally an energy yield analysis combined with a financial model. The technical inputs — solar irradiance, PLF, panel degradation rate, inverter efficiency, performance ratio — determine the energy generation, which determines the revenue, which determines the DSCR. Getting any of these technical inputs wrong produces incorrect financial projections and an incorrect DSCR — which the bank’s credit team will identify immediately.
At Sharda Associates our CA team prepares solar plant Feasibility Reports with verified technical inputs for your specific location — not generic assumptions copied from a template. We use actual solar irradiance data for your district in Madhya Pradesh or your state across India to build generation projections that banks find credible and verifiable.
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Documents Required for Solar Plant Feasibility Report Preparation
For rooftop solar systems:
- Latest electricity bill in the name of the applicant
- Roof area details and photographs
- Roof ownership proof or NOC from owner
- Quotation from DISCOM-empanelled, ALMM-compliant solar vendor
- Aadhaar Card and PAN Card of all applicants
- Bank account details for subsidy credit
- Income proof if required by specific bank
For ground-mounted solar plants under PM KUSUM:
- Land documents — ownership deed or lease agreement
- Udyam Registration if applicable
- DISCOM technical feasibility letter or application confirmation
- Quotations from ALMM-compliant EPC contractor
- Grid connectivity feasibility from DISCOM
- Aadhaar Card and PAN Card of all promoters
- Last 2 to 3 years ITR if available
- Last 6 months bank account statements
- Detailed Project Report — required for larger solar plants above Rs.25 lakh
- CMA Report — required for loans above Rs.10 lakh
How Sharda Associates Helps With Solar Plant Loan Documentation
At Sharda Associates we prepare complete solar plant loan documentation — Feasibility Report, Project Report, Detailed Project Report, and CMA Report — as an integrated package. Our CA team understands the specific requirements of MNRE-aligned banks for solar project financing and structures your documentation to meet those exact standards.
We are based in Bhopal, Madhya Pradesh — and we serve solar project clients across all districts of MP and across India. Madhya Pradesh is one of the best states in India for solar energy — with high annual irradiance, strong DISCOM support, and active PM KUSUM implementation across rural districts.
When you call us our CA team gives you free same-day guidance on which MNRE scheme applies to your project, what documentation your specific bank requires, and how to structure your project cost and subsidy to maximise your financial viability.
All revisions are completely free unlimited until your bank approves. Solar Plant Feasibility Report starting at Rs.2,999. Delivery in 3 to 5 working days.
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Conclusion
Setting up a solar plant in India in 2026 is one of the most financially attractive business decisions available — with government subsidy covering 30 to 60 percent of project cost, stable long-term revenue from electricity savings and power sale, and a 25-year asset life that provides energy security for decades.
But accessing bank financing for your solar project requires a properly prepared Feasibility Report — one that meets MNRE’s technical standards, your bank’s financial appraisal requirements, and correctly reflects the subsidy structure applicable to your specific scheme.
At Sharda Associates our CA team prepares complete solar plant loan documentation — Feasibility Report, Project Report, Detailed Project Report, and CMA Report — personally, correctly, and with the technical and financial expertise your solar project deserves.
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Office HIG-B-59, Sector A, Vidya Nagar, Hoshangabad Road, Bhopal 462026
Frequently Asked Questions
1. Is a Feasibility Report mandatory for solar plant bank loan?
Yes. The loan amount is disbursed directly to the vendor or EPC contractor upon submission of all required feasibility reports as mandated by MNRE. Without a properly prepared Feasibility Report your bank cannot process or disburse the solar plant loan.
2. What is the subsidy available for solar plants under MNRE in 2026?
Under PM Surya Ghar the subsidy is 40 percent for systems up to 3 kW and 20 percent for systems between 3 kW and 10 kW. Under PM KUSUM the central subsidy is 30 percent with state government providing at least another 30 percent.
3. What MNRE compliance is required for solar panels?
Solar panels must be BIS-certified and on MNRE’s Approved List of Models and Manufacturers — ALMM. Using components not on the ALMM list voids subsidy eligibility. Your Feasibility Report must specify ALMM-compliant components from the project inception.
4. Do I need a CMA Report for solar plant loan?
For solar plant loans above Rs.10 lakh most banks require a CMA Report alongside the Feasibility Report. We prepare both as an integrated package ensuring complete consistency between all financial figures.
5. What is PLF in solar plant Feasibility Report?
PLF stands for Plant Load Factor — the ratio of actual annual energy generation to theoretical maximum generation at full capacity. For ground-mounted solar plants in Madhya Pradesh PLF typically ranges from 18 to 22 percent. This figure drives all revenue and financial projections in the Feasibility Report.
6. Can farmers get bank loans for PM KUSUM solar plants?
Yes. Under PM KUSUM Component A and B farmers can take bank loans for the portion of project cost not covered by central and state government subsidy. Bank finance covers up to 30 percent of the project cost. A Project Report and Feasibility Report are required for the loan application.
7. How long does it take to prepare a solar plant Feasibility Report?
At Sharda Associates we deliver solar plant Feasibility Reports in 3 to 5 working days from receiving complete documents and project details. Urgent delivery is available for time-sensitive bank deadlines.
8. Do you prepare solar plant Feasibility Reports for all states?
Yes. We prepare solar plant Feasibility Reports for projects across all states of India — completely online. Our service is particularly strong for Madhya Pradesh projects where we have detailed local knowledge of DISCOM requirements, irradiance data, and empanelled bank processes.