Normal ATMs vs. Solar-Powered ATMs: The Game Changer for Banking in Rural Areas

Access to basic banking services has become a necessity in modern life, helping people manage their money with ease, whether it’s withdrawing cash, checking balances, or transferring funds. 

Yet in many rural communities, unreliable or limited electricity makes it difficult to keep traditional ATMs operational. This is where Solar Panels and Solar Systems shine, offering a clean, cost-effective, and dependable way to power ATMs without relying on the grid. 

In this blog, we’ll explore how Solar-Powered ATMs are reshaping rural banking and why they represent a meaningful step toward a more connected, inclusive, and sustainable future.

Before diving into the benefits of solar systems, it’s important to understand the challenge. In many rural and remote parts of the world, especially in countries like India, electricity is either inconsistent or completely absent. 

Traditional ATMs require constant power to function, which becomes a huge issue in these locations.

To deal with this, banks often rely on diesel generators. While this might sound like a good backup, diesel generators come with their own problems:
• High fuel costs
• Pollution and noise
• Frequent maintenance
• Risk of breakdowns

As a result, ATMs in rural areas often go offline, frustrating customers and limiting access to essential banking services.

According to RBI data highlighted in a Policy Circle report, India has only about 15 ATMs per 100,000 residents, and nearly 80% of these are concentrated in urban areas—despite the fact that about 67% of the population lives in rural regions. This stark imbalance underlines the urgent need for sustainable and accessible ATM infrastructure in non-urban areas.

Solar-Powered ATMs use Solar Panels to capture sunlight and convert it into electricity. These panels are connected to Solar Systems that include batteries and inverters, allowing the ATM to function even when the sun isn’t shining. It’s a clean, green, and reliable alternative to traditional power sources.

These Solar Systems are designed to work independently of the grid, which means they can keep ATMs running 24/7 in even the most remote areas. Let’s see how they compare to normal ATMs.

As the table shows, Solar Systems make a huge difference in reliability, cost, and environmental impact.

So, what exactly makes Solar Panels and Solar Systems so effective in this setup?

1. Free Energy Source: Sunlight is free, unlimited, and available almost everywhere. Once Solar Panels are installed, the power generated doesn’t cost a rupee.

2. Battery Backup for Cloudy Days: A well-designed Solar System includes batteries that store excess energy. This means the ATM continues to function even during the night or on cloudy days.

3. Minimal Maintenance: Solar Panels don’t have moving parts, which means fewer chances of wear and tear. Simple cleaning once a month and battery checks are usually enough.

4. Long-Term Cost Savings: Although installing Solar Systems may seem expensive at first, the savings on electricity bills, fuel, and repairs make up for it quickly.

5. Scalable and Flexible: Whether it’s one ATM or a whole network, Solar Systems can be tailored to fit the bank’s needs.

Let’s look at how Solar-Powered ATMs are already making a difference:

• Improved Access to Banking Services: In villages where ATMs used to go offline due to power cuts, Solar Systems now keep them running round the clock. People don’t have to travel far for cash or wait for days.

• Lower Costs for Banks: With diesel prices rising, banks save significantly by switching to Solar Panels. Maintenance costs are also reduced, making the overall system more efficient.

• Support for Financial Inclusion: By using solar systems, banks can confidently expand to new locations, supporting government initiatives for digital and financial inclusion. In fact, Solar ATM deployment is accelerating access to formal banking in remote areas. For example, SBI will deploy 545 solar ATMs for its semi-urban and rural branches, followed by additional orders from other financial institutions. This demonstrates growing trust in solar-powered infrastructure as a practical solution for underserved regions.

• Boost for the Environment: Switching to solar means fewer carbon emissions, less noise pollution, and a smaller carbon footprint—a win for the planet.

A Smart Investment for the Future

As technology improves and Solar Panels become more efficient and affordable, Solar Systems are turning into a smart investment for banks. They not only solve the electricity problem but also show a commitment to sustainability and rural development.

More than that, they empower people. When an ATM works reliably in a remote village, it opens doors not just for money withdrawals, but for saving accounts, digital payments, and economic participation.

Challenges and What’s Being Done

Of course, no system is perfect. There are a few challenges to keep in mind:

• Initial Setup Cost: Installing Solar Systems can be expensive upfront. But government subsidies and long-term savings make it manageable.

• Weather Dependency: While batteries help, continuous cloudy days can affect performance. That’s why backup systems and smart energy management are important.

• Need for Skilled Technicians: To maintain Solar Panels and manage technical issues, local training programs are needed.

Fortunately, many banks and NGOs are working together to overcome these hurdles and make Solar-Powered ATMs a standard solution.

Fun Fact: Did you know that India is home to the world’s first solar-powered ATM installed back in 2002 in Tamil Nadu? It marked a turning point in combining green energy with financial inclusion

Final Thoughts

The difference between normal ATMs and Solar-Powered ATMs is more than just electricity, it’s about access, opportunity, and progress. In rural areas where every rupee matters, and every kilometer counts, Solar Systems bring reliable banking closer to home.

By tapping into the power of the sun through Solar Panels, banks can offer uninterrupted service, reduce costs, and promote sustainable growth. For communities off the grid, this simple shift could be the game changer they’ve been waiting for.

For more on how solar powered ATMs are revolutionizing rural areas, check out our complete blog here. 

1. How do CBSL solar-powered ATMs improve reliability in rural areas compared to normal ATMs?

CBSL solar-powered ATMs provide consistent 24/7 operation using solar panels and batteries, ensuring service even where grid electricity is unreliable or absent.

2. What cost savings do CBSL solar-powered ATMs offer over traditional ATMs in rural locations?

CBSL solar ATMs cut out electricity and diesel generator expenses, offering banks a lower-cost, maintenance-light alternative for rural deployments.

3. Why are CBSL solar-powered ATMs considered a sustainable solution for rural financial inclusion?

CBSL’s solar ATMs use clean energy, reduce carbon emissions, and enable banks to serve remote communities, advancing both sustainability and inclusion goals.

4. What makes CBSL’s solar-powered ATM systems a smart investment for banks?

CBSL’s solutions offer scalable deployment, minimal upkeep, and long-term operational savings, empowering banks to expand reliably into rural and underserved markets