The Asian Development Bank (ADB) has sanctioned a loan of $ 240.5 million to fund rooftop solar systems in India, supporting the government's initiative to enhance energy access through renewable sources.
ADB revealed that this funding will back tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, which ADB initially approved in 2016. In 2023, the program was restructured to concentrate on the deployment of residential solar rooftop systems.
India aims to achieve approximately 50 per cent of its 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 is aligned with these goals and will contribute to the Prime Minister's Surya Ghar program, which encourages the installation of rooftop solar systems across the country, ADB Principal Energy Specialist Kaoru Ogino explained.
The approved financing will be directed to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). These institutions will provide loans to developers and end-users across India for the installation of rooftop solar systems. Specifically, ADB will allocate $ 90.5 million from its Clean Technology Fund (CTF) to SBI, while NABARD will receive $ 150 million, comprising $ 80 million from ADB's ordinary capital resources and $ 70 million from the CTF.
