NMB Bank Promotes Solar Rooftop Financing for Businesses

12th October 2025, Kathmandu

NMB Bank is leading the charge in Nepal’s sustainable finance landscape, offering compelling financing solutions to encourage businesses across the nation to transition to solar rooftop energy.

NMB Bank Promotes Solar Rooftop Financing

This strategic initiative positions the bank not merely as a financial institution, but as a crucial partner in the nation’s journey toward green growth and energy independence. By focusing on rooftop solar solutions, NMB Bank provides a clear path for corporate entities and Small and Medium Enterprises (SMEs) to drastically reduce operational costs, enhance profitability, and make a tangible contribution to a sustainable environment.

The core value proposition for businesses lies in the dual advantage of financial gain and environmental responsibility. Electricity bills are a significant and often volatile component of a business’s operating expenses. By installing a solar rooftop system, companies effectively lock in their energy costs and hedge against future increases in utility tariffs. NMB Bank’s financing package is specifically designed to make this transition financially seamless and immediately beneficial.

Attractive Financing and Favorable Interest Rates

A critical element of this promotional effort is the bank’s commitment to offering attractive interest rates for solar rooftop projects. The highly competitive terms provided by NMB Bank significantly reduce the initial capital expenditure (CAPEX) burden for businesses, ensuring that the switch to solar power is economically viable from the start.

According to the bank’s own interest rate structures for project finance, the financing for Roof-Top Solar projects is highly favored, often carrying a lower premium over the Base Rate (BR) compared to other term loans. In various instances, the interest rates for these loans are structured around the Bank’s Base Rate plus a modest premium, potentially making the investment instantly cash-flow positive. This calculated risk-sharing approach demonstrates NMB Bank’s genuine commitment to fostering green energy adoption, acknowledging the long-term, stable returns that renewable energy projects deliver.

Moreover, NMB Bank is recognized for its comprehensive approach to renewable energy. It not only finances the outright purchase (CAPEX model) but also supports financing under the Renewable Energy Service Company (RESCO) model. This is a crucial differentiator, allowing businesses to obtain the benefits of solar power generation without owning the equipment, where a third party owns and maintains the solar system, and the business purchases the electricity produced. NMB Bank’s readiness to finance both models ensures flexibility for businesses of all sizes and financial structures.

A Champion of Sustainable and Value-Based Banking

NMB Bank’s dedicated push for solar financing is not an isolated initiative; it is a fundamental pillar of its overarching strategy toward sustainable banking. The bank is a proud member of the Global Alliance for Banking on Values (GABV), a network of independent banks committed to advancing positive change. This affiliation reinforces its focus on value-based banking, where profitability is pursued alongside a positive impact on society and the environment.

This sustainable focus is widely recognized, with NMB Bank having been repeatedly awarded the prestigious ‘Bank of the Year’ title by The Banker Magazine of the Financial Times, London, including the ‘Bank of the Year Asia’ award in 2021. Such global recognition is a testament to its leadership in sustainable finance and its efforts to align financing with international Environmental, Social, and Governance (ESG) standards.

The financing of rooftop solar projects aligns directly with the bank’s broader green portfolio, which encompasses:

• Utility-Scale Solar Projects: Financing large-scale solar farms that sell energy directly to the national grid.
• Waste-to-Energy and Biogas Projects: Supporting innovative solutions for energy generation and waste management.
• Electric Vehicle (EV) Financing: Promoting the shift towards sustainable mobility solutions.
• Green Home Loans and Green Buildings: Extending its sustainable focus to the retail and housing sector.

Maximizing Business Benefits and Environmental Impact

For businesses, the advantages of adopting solar energy with NMB Bank’s support are clear and compelling:

• Cost Reduction and Predictability: Solar power drastically reduces recurring monthly electricity costs, freeing up capital that can be reinvested into core business operations. This cost predictability is a major advantage in volatile economic environments.
• Energy Security: Rooftop solar installations provide a reliable, on-site power source, safeguarding operations against grid failures and power outages, thus ensuring business continuity.
• Green Image and Responsibility: By actively adopting clean energy, businesses enhance their brand reputation, attracting environmentally conscious customers and talent, thereby aligning profitability with corporate social responsibility.
• Long-Term Asset Value: A solar installation is a depreciable asset that adds significant long-term value to a business’s infrastructure and balance sheet.

The commitment to green financing is further solidified by the bank’s pioneering issuance of Nepal’s first-ever Green Bond, securing substantial international investment from partners like the International Finance Corporation (IFC) and British International Investment (BII). This demonstrates the availability of dedicated, long-term capital for green initiatives, including rooftop solar, ensuring that businesses can confidently access the funds they need to make the sustainable switch. By empowering businesses to generate their own clean power, NMB Bank is not only helping them maximize their profits but is actively contributing to Nepal’s sustainable development goals, ensuring a greener and more energy-secure future for the entire nation.

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