ADB Approves $240.5 Mn Loan For Rooftop Solar Systems In India

To boost the government’s efforts to expand energy access through renewable energy, the Asian Development Bank (ADB) has approved a loan of USD 240.5 million to finance rooftop solar systems in India. The approved financing will be allocated to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (Nabard).

These institutions will provide loans to developers along with the end-users throughout the country for the installation of rooftop solar systems.

The SBI will be given USD 90.5 million from the Clean Technology Fund (CTF) of the ADB. On the other hand, Nabard will be receiving USD 150 million, which includes USD 80 million from ADB’s ordinary capital resources and USD 70 million from CTF.

ADB’s principal energy specialist Kaoru Ogino stated, “India aims to achieve about 50 per cent of cumulative electric power installed capacity from non-fossil fuel sources by 2030 in line with its global commitments to reduce carbon emissions.”

The ADB informed that this financing will support tranches two and three of the multi-tranche financing facility (MFF) solar rooftop investment program, initially approved by ADB in 2016. The program was restructured to focus specifically on deploying residential solar rooftop systems in 2023.

“ADB’s financing supports these goals and will contribute to the Prime Minister’s surya ghar program, which encourages people to install rooftop solar systems across the country,” Ogino added.

Recently, PM Modi introduced the PM Surya Ghar Muft Bijli Yojana, a rooftop solar scheme for free electricity. On 3 February 2024, the PM took to X (formerly twitter) and wrote, “In order to further sustainable development and people’s wellbeing, we are launching the PM Surya Ghar: Muft Bijli Yojana. This project, with an investment of over Rs. 75,000 crore, aims to light up one crore households by providing up to 300 units of free electricity every month.”