$240.5M Boost for Indian Rooftop Solar

18 Jul 2024 , 10:33 AM

The Asian Development Bank (ADB) has granted a USD 240.5 million loan to finance rooftop solar systems in India, supporting the government’s aim to increase electricity access through renewable energy.

The ADB said on Wednesday that this financing will assist tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Programme, which was first approved by the ADB in 2016. In 2023, the programme was redesigned to concentrate on the deployment of residential solar rooftop systems.

“India plans to reach approximately 50% of cumulative electric power installed capacity from non-fossil fuel energy sources by 2030, in accordance with its worldwide commitment to cut carbon emissions. ADB’s financing supports these objectives and will help fund the Prime Minister’s Surya Ghar programme, which encourages individuals across the country to install rooftop solar systems,” said ADB Principal Energy Specialist Kaoru Ogino.

The authorised funding would go to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). These institutions will offer financing to developers and end users across India for the installation of rooftop solar systems.

ADB will provide SBI with USD 90.5 million from its Clean Technology Fund (CTF), while NABARD will get USD 150 million, which includes USD 80 million from ADB’s ordinary capital resources and USD 70 million from the CTF.

ADB noted that installing rooftop solar systems has considerable benefits for the overall electricity distribution system. It can alleviate the technical and operational load by generating electricity close to where it is consumed, reducing the requirement for long-distance power delivery and the related system losses. This close closeness to the site of consumption improves power distribution efficiency and promotes energy independence, reducing power supply disruptions.

Furthermore, the development of rooftop solar systems is consistent with India’s overall energy and environmental goals. By increasing the percentage of renewable energy in the country’s energy mix, India may reduce its reliance on fossil fuels, lowering greenhouse gas emissions and moving closer to its climate goals.

ADB stated that the deployment of these systems also supports the Prime Minister’s Surya Ghar programme, which aims to stimulate widespread adoption of rooftop solar installations, resulting in a more sustainable and resilient energy infrastructure across the country.

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