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Kashmir Solar Loans Stall Amid Vendor Trust Issues
8 Oct
Summary
- Banks hesitate to finance Kashmir solar projects due to vendor credibility concerns.
- Over 17,000 solar loan applications rejected in Jammu and Kashmir.
- J&K aims to install 83,500 rooftop solar systems by March 2027.
Banks in Kashmir are exhibiting caution towards financing rooftop solar initiatives due to issues with vendor credibility. This concern has significantly impacted the PM Surya Ghar scheme in Jammu and Kashmir, where 17,416 loan applications have been rejected. A senior banker highlighted that inadequate vendor vetting and unrealistic customer promises are major factors.
The administration has identified bank financing as a key challenge, urging power distribution companies to review rejected applications with banks. Approximately 75% of rooftop solar installations in Kashmir's KPDCL areas rely on bank financing, making this a critical bottleneck. Jammu and Kashmir has received 89,680 applications, surpassing its target, and has installed 46,133 systems to date.
Further impediments include uneven vendor availability, metering delays, and pending power purchase agreements. The government is working to resolve eligible rejected cases, aiming to convert strong consumer interest into completed solar projects across the region. As of October 8, 2026, installation efforts continue despite these challenges.
