Energetica India Magazine - November 2025

Scaling rooftop solar in India requires addressing barriers beyond the cost of equipment. By building partnerships with install- ers, technology providers, utilities, and government agencies, NBFCs can transform rooftop solar into a seamless experience for customers. India’s rooftop solar sector has shifted from being a niche op- portunity to becoming a central component of the renewable energy transition. Data from the Ministry of New and Renew- able Energy (MNRE) shows that India has achieved close to 19.9 GW of installed rooftop solar capacity. While this marks a significant milestone, it still represents only a fraction of the country’s vast untapped potential across residential, commer - cial, and industrial segments. The past year has underlined this momentum. In 2024, roof - top solar additions reached 4.6 GW, which was a 54 percent in - crease compared to the previous year. The residential segment is steadily expanding as well, now crossing 3 GW of installed capacity, accounting for nearly one-fourth of the total distrib - uted rooftop market. These figures highlight both the growing appetite among customers and businesses and the structural challenges that must be addressed to unlock further scale. Financing and the Role of NBFCs One of the greatest barriers to rooftop adoption is the high upfront cost. Even when customers understand the long-term savings from lower electricity bills, the initial investment is of - ten prohibitive. This is particularly true for households, MS - MEs, and smaller industries that operate with limited working capital. In this context, Non-Banking Financial Companies (NBFCs) are emerging as critical enablers. NBFCs already contribute a significant share of retail and MSME lending in India. A KPMG report notes that NBFCs serve segments of the population that traditional banks do not reach effectively. Their agility and distribution strength give them the ability to design customised financial products for rooftop customers. By offering flexible tenors, linking EMIs to expected electricity savings, and providing add-on loans for technologies such as battery storage or EV chargers, NBFCs can make rooftop adoption more accessible. They are also able to employ alternative credit assessment tools, enabling them to serve customers without traditional credit histories. Why Partnerships are Critical? Financing is essential, but on its own, it is insufficient. Roof - top projects are multi-step processes that involve procurement, installation, grid interconnection, regulatory approvals, and long-termmaintenance. If these steps remain fragmented, cus - tomers face delays and uncertainty, which discourages adop - tion. NBFCs can create far greater impact when they embed themselves into this broader ecosystem. By building partnerships with installers, technology provid - ers, utilities, and government agencies, NBFCs can transform rooftop solar into a seamless experience for customers. Strong coordination ensures that financing is aligned with project ex - ecution, that subsidies are integrated smoothly into disburse - ments, and that system quality is guaranteed through vetted partners. Digital integrations with technology platforms fur- ther reduce paperwork, accelerate approvals, and allow re - al-time monitoring of system performance. In short, partner - ships enable lenders to move from being passive financiers to active facilitators of rooftop adoption. Models of Collaboration The partnerships between NBFCs and other ecosystem players can take different forms, but the principle remains the same: reduce friction and improve execution. In some cases, NBFCs NBFCs Strengthen Partnerships to Scale Rooftop Solar Adoption Pratik Mandvia Solar Business Head Mufin Green Finance SOLAR FINANCING 58 energetica INDIA- November_2025