ADB Approves $240.5 Million to Expand Rooftop Solar Systems in India

In a significant move towards enhancing renewable energy access in India, the Asian Development Bank (ADB) has sanctioned $240.5 million in loans. This funding will support tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, originally approved in 2016 and recently restructured to prioritize residential solar rooftop systems deployment.

India’s ambitious target to achieve 50% of its electric power capacity from non-fossil fuel sources by 2030 aligns with global carbon reduction commitments. ADB’s financing, earmarked for the Prime Minister Surya Ghar program, aims to facilitate widespread installation of rooftop solar systems across the nation.

The State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) will administer the loans provided by ADB. SBI will receive $90.5 million from ADB’s Clean Technology Fund (CTF), while NABARD will manage $150 million, comprising $80 million from ADB’s ordinary capital resources and $70 million from CTF.

Rooftop solar systems are expected to alleviate strain on the power distribution network by generating electricity closer to the point of consumption, thereby reducing transmission losses and enhancing energy security. This initiative underscores ADB’s commitment to fostering sustainable development in Asia and the Pacific, aiming to eradicate extreme poverty while promoting resilience and inclusivity.

Founded in 1966 and owned by 68 member countries, ADB remains dedicated to advancing a prosperous and sustainable future for the region.