Aerem expands solar financing model for MSMEs and smaller installations
Aerem was set up around 2018-19 to tackle financing, trust and last-mile hurdles in distributed solar. It runs an RBI-licensed NBFC called Netzero Finance, a solar components marketplace named Aerem Store, and an independent power producer business that owns distributed solar assets and signs PPAs. The NBFC has funded nearly 3,000 solar plants, mostly for MSMEs, with about Rs 6.5 billion disbursed and roughly Rs 3.5 billion in assets under management.
Aerem began in 2018-19 to solve financing, trust and last-mile gaps in distributed solar. Its operations combine an RBI-licensed NBFC, a components marketplace and an independent power producer that holds distributed assets and signs PPAs.
The NBFC has backed almost 3,000 plants, about four-fifths MSMEs, with smaller residential and EPC working-capital shares. It has disbursed roughly Rs 6.5 billion and manages about Rs 3.5 billion. Projects span 20 kW to 4-5 MW, with loans typically five years and rates around 9-12%.
Faster solar financing could help MSMEs lower power costs and adopt cleaner energy, while residential users and EPC firms may gain access to funding. If approvals and disbursements remain quick, more distributed plants may be built, potentially supporting local installers and reducing reliance on grid electricity. However, benefits may depend on regulatory stability, repayment capacity and whether savings exceed loan costs. This could influence energy affordability and small-business resilience, though outcomes may vary by region and customer.