The Asian Development Bank (ADB) has approved $240.5 million in loans to finance rooftop solar systems in India that will help the government expand energy access using renewable energy.
The financing will support tranches 2 and 3 of the Multi-Tranche Financing Facility (MFF) Rooftop Solar Investment Program approved by ADB in 2016. The program was restructured in 2023 to focus on the deployment of residential rooftop solar systems.
“India aims to achieve around 50% of cumulative installed electricity capacity from non-fossil fuel energy sources by 2030, in line with its global commitments to reduce carbon emissions. ADB funding supports these goals and will contribute to the Prime Minister’s Surya Ghar programme, which encourages people to install rooftop solar systems across the country,” said Kaoru Ogino, Senior Energy Specialist at ADB.
ADB approves support for power sector reforms in Sri Lanka
The funding will be made available to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) to provide loans to developers and end-users across India for installing rooftop solar systems. ADB will provide SBI with $90.5 million from its Clean Technology Fund (CTF), while NABARD will receive $150 million, of which $80 million will come from ADB’s regular capital resources and $70 million from the CTF.
Installing rooftop solar systems can benefit the overall power distribution system by reducing the technical and operational burden.
India aims to achieve around 50% of cumulative installed electricity capacity from non-fossil fuel energy sources by 2030
Rooftop solar installations allow electricity to be generated close to where it is consumed, reducing the need for long-distance power supply and the resulting system losses. This power distribution system provides a certain degree of energy independence with fewer power interruptions.
The ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific region, while continuing its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49—from the region.
Add Comment