U GRO Capital, a technology-enabled lender to small businesses, has entered into a Rs 20-crore co-lending programme with Sunvest Capital to finance purchasing of solar panels. Under the co-lending programme, the companies will provide financing to Micro, Small & Medium Enterprises (MSMEs) to buy solar panels, U GRO Capital said in a statement.

“The co-lending programme will combine our knowledge-driven approach (sectoral focus) backed by technology with in-depth solar panel market insights of Sunvest Capital. We look forward to a long-term mutually beneficial relationship with Sunvest Capital to fill this market gap and join the nation-building through carbon mitigation and clean energy promotion,” said Shachindra Nath, Executive Chairman at U GRO Capital.

Sunvest Capital is a rooftop solar financing NBFC. The collaboration assumes significance as the government has set a renewable energy target of 175 GW by 2022 and solar rooftop energy is expected to contribute 40 GW to the overall target. India has so far installed only 10 per cent of its rooftop solar target, leaving a huge potential for growth that is impeded by financial concerns among the MSMEs.

“With over 400 industrial clusters, MSMEs are the growth engine for India's industrial development and adopting solar energy has numerous economic, social and environmental benefits. Power costs are a big portion of MSME's overall expenditure and access to the right financial products will now help these businesses to go solar,” Sishir Garemella, Founder & CEO at Sunvest Capital said.

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