ADB Approves $240.5 Million Loans for Rooftop Solar Systems in India.

The Asian Development Bank (ADB) has announced the approval of $240.5 million in loans to finance rooftop solar systems in India, aimed at expanding energy access through renewable sources.

This financing will support tranches 2 and 3 of the Multi-tranche Financing Facility (MFF) Solar Rooftop Investment Programme initially approved by ADB in 2016. Recently restructured in 2023, the programme now focuses on deploying residential solar rooftop systems across the country.

"India aims to achieve about 50% of cumulative electric power installed capacity from non-fossil fuel energy sources by 2030 in line with its global commitments to reduce carbon emissions. ADB’s financing supports these goals and will contribute to the Prime Minister Surya Ghar program, which encourages people to install rooftop solar systems across the country," stated ADB’s Principal Energy Specialist Kaoru Ogino.

The loans will be disbursed to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD), facilitating loans to developers and end-users nationwide for the installation of rooftop solar systems.

Specifically, ADB will provide $90.5 million from its Clean Technology Fund (CTF) to SBI, while NABARD will receive $150 million, consisting of $80 million from ADB’s ordinary capital resources and $70 million from CTF.

Rooftop solar systems offer benefits to the power distribution system by reducing technical and operational burdens. They enable electricity generation close to the point of consumption, thereby reducing the need for long-distance power supply and associated system losses. This decentralized energy approach enhances energy independence and resilience against power disruptions.

ADB, established in 1966 and comprising 68 member countries with a focus on Asia and the Pacific, remains committed to fostering inclusive, resilient, and sustainable development while combating extreme poverty.

HBL