The Asian Development Bank (ADB) has sanctioned $240.5 million in loans to finance rooftop solar systems in India, supporting the government’s efforts to expand energy access through renewable sources. This funding backs the second and third tranches of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, originally approved by ADB in 2016 and restructured in 2023 to prioritize residential solar rooftop deployments.
India aims to achieve approximately 50% of its cumulative electric power installed capacity from non-fossil fuel energy sources by 2030, aligning with its global commitments to reduce carbon emissions. ADB’s financing efforts support these goals and contribute to the Prime Minister Surya Ghar program, which encourages nationwide rooftop solar installations. ADB Principal Energy Specialist Kaoru Ogino emphasized the alignment of this financing with India’s environmental objectives.
The funding will be provided to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). SBI will receive $90.5 million from ADB’s Clean Technology Fund (CTF), while NABARD will be allocated $150 million, comprised of $80 million from ADB’s ordinary capital resources and $70 million from the CTF. These funds will be used to offer loans to developers and end-users across India for the installation of rooftop solar systems.
The deployment of rooftop solar systems offers significant benefits to the overall power distribution system by alleviating technical and operational pressures. By generating electricity close to the point of consumption, these systems reduce the need for long-distance power transmission, thereby minimizing system losses. This approach also promotes a degree of energy independence and reduces power supply disruptions.
ADB remains committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. Since its establishment in 1966, ADB has grown to include 68 member countries, with 49 hailing from the region.
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 has approved $240.5 million in loans to support India's rooftop solar systems, aiding the country's commitment to expanding renewable energy and reducing carbon emissions by 2030.){kind=link}