SUSTAINABLE FINANCE
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8 MIN READ
Building Tomorrow: How
NBFC GoGreen Capital is transforming
Green Infrastructure Financing
Written by - Mr. Pramod Marar
30th April, 2025
Everyone’s talking about going green.
But without the right sustainable finance, even the best ideas can’t get off the ground.
Building a sustainable future is not just about willpower and technology—it involves increasing commitment from all sides. In India, that commitment is growing. From solar parks like the Rewa Ultra Mega Solar Plant to metro systems moving to clean energy, and states launching electric vehicle policies, there is a forward movement in green initiatives. India is committed to set up 500 GW of non-fossil fuel capacity by 2030 and plans to fulfill 50% of its energy needs from renewables. Cities are adding zero emission vehicles for commercial travel and transportation, and installed rooftop solar has more than doubled over the last five years.
But as these projects increase, so does the associated amount of financing that is required. Most environmentally friendly projects require significant starting capital and have delayed return times. This makes traditional lenders hesitant. Now, however, there is a transition occurring in this space. New NBFCs are stepping in to close this gap and support the transition. GoGreen Capital is part of this change — making it simpler, faster, and more practical to fund the infrastructure behind a cleaner tomorrow.
Sounds promising? In this blog, we’ll explore the green push happening across India, what’s holding it back, and how GoGreen Capital is helping businesses take that leap toward sustainability.
The Problem: Green finance future
The push for net-zero initiatives in India is stronger than ever. Regardless, financing for sustainability remains a major challenge. Without access to financing, many green projects, businesses and initiatives will suffer to start, grow and scale. It is necessary to build on solid sustainable financial grounds to translate the green ambitions of today into the reality of tomorrow.
Why Green Infrastructure matters and How M/SMEs are Leading the Change?
Green infrastructure is a technology that is not only found in big corporations but is also becoming a major area of growth in businesses, with some of those being small and medium enterprises like small fleet operators, OEMs, and others.
Today, many M/SMEs are taking practical steps toward greener operations, including:
- Installing rooftop solar panels to lower energy costs
- Switching to electric vehicle (EV) fleets for logistics and delivery
- Participating in battery circularity programs and adopting BESS (Battery Energy Storage Systems)
- Investing in smart energy management, water recycling, and sustainable supply chains
- Upgrading to energy-efficient buildings and green-certified facilities
These minor but important acts are beneficial in reducing emissions, operational costs, and opening up to lower-cost capital and new markets.
The environment can benefit from this, but at the same time, it can lead to economic growth and job creation. Investing in green infrastructure is a pre-requisite to meeting India’s net-zero goals.
What’s stopping the shift to Sustainable Solutions?
Despite the many advantages of sustainable infrastructure, the adoption process is hampered by several issues.
- High upfront costs: Green initiatives usually have higher initial expenses and longer break-even timelines.
- Perceived risks: Traditional lenders may see these projects as being high risk.
- Lack of standardized evaluation models: The lack of a standardized evaluation model has made it difficult for investors to determine the feasibility of green projects.
- Limited access for smaller players: It is not easy for small and medium companies to secure funds for green projects at competitive rates.
- Policy and regulatory inconsistencies: Differences in laws and regulations and government policies can cause investors to become uncertain.
- Solar Projects under SECI Phase II: Some large solar projects in the second phase of the Solar Energy Corporation of India (SECI) have been postponed owing to cancelled tenders and risky funding. India launched tenders in 2024 for developing 73 GW of renewable power but 8.5 GW could not be bid upon due to the complex nature of tenders and postpondment in interstate transmission. Additionally, around 38.3 GW of schemes were terminated from 2020 to 2024 due to funding issues.
- A few states in India, such as Uttar Pradesh and Rajasthan, aim to develop electric vehicle (EV) infrastructure extensively. But the process has been slower than expected due to issues in drawing private investment.
- Uttar Pradesh: The state government is keen to have private investment in their charging infrastructure for electric vehicles, and this will be achieved through a public-private partnership model.
- India News National Overview: A recent report by the International Council on Clean Transportation (ICCT) points out that although there has been strong growth in EV sales and charging points, the momentum differs across states, with some of them being hindered in infrastructure deployment.
Closing these gaps needs creative financial solutions and policy support that appreciate the special character of sustainable projects and are prepared to support long-term value creation.
Key takeaway
Financing green infrastructure is not simply the funding of projects — it’s the investment in a world where businesses, communities, and the planet can prosper in harmony.
Why traditional finance isn’t enough?
Though conventional banks and NBFCs are the backbone of India’s economy, they tend to struggle with financing green sustainable projects. This can delay and obstruct the timely and effective execution of sustainable projects.
Challenges with traditional financing
- High Upfront Costs: Green initiatives often involve large initial outlays, which can discourage conventional lenders used to quick returns.
- Perceived Risks: Emerging technologies and untested business models in green sectors may be viewed as high-risk by traditional financiers.
- Regulatory Complexities: Anticipating the evolving scenario of environmental regulations can prove problematic for traditional financial institutions.
- Lack of Standardized Metrics: The absence of standard measures to assess the environmental impact and economic viability of green projects may render lending problematic.
These aspects have a tendency to create a financing gap, where green projects are unable to access the required funds through the traditional channels.
The need for innovative financial solutions
To fill this gap, there is growing recognition of the need for innovative financial instruments and institutions. Green nbfc, for instance, can play a pivotal role by offering custom financial products that cover the specific challenges of sustainable finance projects. Also, blended finance models which integrate public and private capital can reduce risks and bring in private funds. By developing and implementing such innovative financial solutions, India can accelerate its transition to a sustainable and low-carbon economy.
Why GoGreen Capital focuses on Green Projects and, what are its benefits?
GoGreen Capital, a leading NBFC focused on sustainable finance, is dedicated to supporting businesses driving the clean energy, solar, and electric mobility sector. GoGreen Capital focus is on enabling businesses in these ecosystems to thrive by offering loans that meet their unique needs.
About GoGreen Capital
GoGreen Capital is a tech-driven financial partner empowering the green transition for India’s M/SMEs. We offer asset loans, business loans, and term loans for businesses in clean mobility, battery, and solar sectors.
Understanding the unique challenges that green-focused M/SMEs face — from high upfront costs to technology adoption — we provide flexible, fast, and accessible financing that helps them scale sustainably.
Benefits of choosing green infrastructure
- Environmental Impact: Reduce carbon footprints and contribute to climate goals.
- Cost Savings: Long-term savings through energy efficiency.
- Government Support: Incentives and favorable policies for green initiatives.
- Future Growth: Position businesses as leaders in the green economy.
How GoGreen’s approach helps the environment and economy?
By financing green projects, GoGreen Capital helps reduce carbon emissions, promotes ESG Goals, and strengthens energy security. GoGreen Capital support fosters sustainable business practices while driving innovation and job creation.
Why choose GoGreen Capital and who we help?
GoGreen Capital helps clean energy M/SMEs, and established businesses switch to greener operations, and enterprises scale up sustainable projects. GoGreen Capital provides financial solutions to meet their unique needs.
What makes GoGreen Capital different?
Focus on Green Transformation: GoGreen Capital is committed to driving India’s green transformation by making capital more accessible for businesses in the green sector.
Tailored Financial Solutions: The company offers customized financial products, including commercial asset loans, business loans, and leasing options, designed specifically for the unique needs of the green sector.
Data-Driven Insights: GoGreen Capital’s lending solutions are enabled by non-traditional insights, such as vehicle usage patterns, battery analytics, and supply chain dynamics, powered by TapFin Hub, the company’s proprietary digital platform.
Empowering Diverse Sectors: The company focuses on supporting startups, MSMEs, fleet operators, and commercial businesses in the clean mobility, solar, and battery circularity sectors, ensuring they have the financial backing to scale.
Strategic Partnerships: By collaborating with financial institutions and fintech platforms, GoGreen Capital is expanding its reach to Tier II and Tier III cities, creating co-lending opportunities that empower local businesses.
Who can reach out to us ?
GoGreen Capital is for businesses working in green infrastructure, whether you’re just starting out or scaling up. We work with fleet operators, battery and vehicle OEMs, EV dealers, charging infrastructure providers, and M/SMEs deploying electric fleets. If you’re looking to finance a sustainable project, reach out to GoGreen Capital for the right financial support.