The Rural Electrification Corporation (REC) has a powerfulmotto: “Endless energy, Infinite possibilities”.
This institution, which is based in India, has worked tirelessly tofund and support environmentally beneficial projects that holdsustainability and project quality as a fundamental value.
Now REC is looking to make solar energy even more attainable to the people of India through short term loans for solar projects. What makes the REC’s loans different are a few key points.
1. They come with a moratorium period.
Moratorium Period, also known as holiday period is a waiting period after taking a loan during which the borrower is not required to make payments.
2. There is a minimum equity contribution & contribution of the core promoters. As proposed by REC, the debt-to-equity ratio would be 70:30 for private-sector borrowers.
3. The loans encompass many forms of sustainable ventures. REC has determined that when solar can be implemented, it should be. However, at times, other forms of sustainable projects are more suitable. In this case, the loans cover biomass and wind projects, in addition to solar energy projects. Here are the details:
• Solar (PV/thermal) projects: Up to 10 MW of installed capacity.
• Biomass or small hydro projects: Up to 10 MW of installed capacity.
• Wind projects: Up to 15 MW of installed capacity.
The vison that REC has is that in time, solar energy projects will extend well into rural areas, and especially where utility companies have not yet developed, essentially making solar energy accessible to all. It is a goal well worth supporting.
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