The Asian Development Bank (ADB) has allocated $240.5 million in loans to bolster India's rooftop solar sector, aiming to significantly enhance the country's renewable energy capacity. The financing, provided to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD), will facilitate easier access to loans for developers and end-users looking to install rooftop solar systems nationwide.
Under this initiative, ADB will channel $90.5 million from its Clean Technology Fund (CTF) to SBI, with NABARD receiving $150 million. This includes $80 million from ADB's ordinary capital resources and an additional $70 million from the CTF.
"India is committed to achieving half of its electric power capacity from non-fossil fuel sources by 2030, aligning with global efforts to reduce carbon emissions," highlighted Kaoru Ogino, ADB's Principal Energy Specialist. "ADB's funding supports this ambitious goal and complements Prime Minister Surya Ghar's initiative, which aims to boost rooftop solar installations across the nation."
India has faced challenges in meeting its previous targets, with only 8.3 GW of rooftop solar capacity installed against a 2022 target of 40 GW. ADB's proposed business models seek to address these gaps, aiming to make rooftop solar more accessible and economically viable for a broader consumer base.
ADB has been a key partner in India's clean energy journey, previously financing various projects. Earlier this year, ADB approved a $148.5 million loan to enhance Sikkim's electricity distribution system to withstand climate impacts. In December last year, Uttarakhand received $200 million to bolster its electricity infrastructure and transition to cleaner energy sources. Additionally, ADB provided $250 million to strengthen India's power sector, enhancing financial performance and attracting private sector investments.
The latest funding underscores ADB's commitment to supporting India's sustainable development goals, promoting clean energy adoption, and bolstering the resilience of its energy infrastructure.
