IREDA Announces New Retail Subsidiary Initiative and Boost to Rooftop Solar Financing

In a significant move towards boosting India’s renewable energy sector, the Indian Renewable Energy Development Agency Ltd. (IREDA) has unveiled plans to establish a subsidiary aimed at the retail market. This announcement was made by Shri Pradip Kumar Das, the Chairman and Managing Director of IREDA, during a panel discussion at the “2nd CII India Europe Business & Sustainability Conclave” in New Delhi on February 20, 2024. The proposed subsidiary will focus on facilitating projects in areas such as Rooftop Solar, PM-KUSUM, Electric Vehicles, and other Business-to-Consumer (B2C) segments, contingent upon the approval from the Government of India.

The conclave, a collaborative effort by the Confederation of Indian Industry (CII) and the Ministry of External Affairs, served as a platform for Shri Das to emphasize IREDA’s proactive approach in improving the bankability of renewable energy projects. His remarks were particularly centered on the “PM Surya Ghar Muft Bijli Yojana,” a scheme announced by the Prime Minister on February 13, 2024, aimed at promoting rooftop solar installations.

Shri Das highlighted the agency’s commitment to enhancing the attractiveness of renewable energy investments by addressing the financial concerns associated with such projects, thereby ensuring their bankability. Over the past three years, IREDA has made notable strides in reducing its Non-Performing Assets (NPAs) by addressing borrower issues and enhancing transparency.

Furthermore, the CMD underlined the critical role of Micro, Small, and Medium Enterprises (MSMEs) in driving environmental sustainability. He stressed the importance of MSMEs improving their ratings and governance to access competitive financing for renewable energy projects, reaffirming IREDA’s support for the sector’s growth and sustainability.