The Asian Development Bank (ADB) has sanctioned a $240.5 million loan to reinforce rooftop solar projects in India to advance the nation’s renewable energy system.
The ADB announced that this funding will support tranches Two and Three of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Project. This financing will be allocated through the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). Both the banks will provide loans to the developers and end users. Punjab National Bank is the debtor of tranche One.
ADB will provide SBI with $90.5 million from its Clean Technology Fund similarly NABARD will get $150 million from which a 70million USD from CTF and the rest 80 million USD from ADB’s ordinary capital resources.
ADB’s Principal Energy Specialist Kaoru Ogino underlined that this initiative will go hand in hand with India’s target of accomplishing 50% of its electricity capacity by non-fossil fuels by 2030. Also, it will be a great addition to Prime Minister Surya Ghar Yojana which is a program initiated by govt of India to encourage people to install rooftop solar across the country.
However, after a 10% drop in rooftop solar installations in the first quarter of 2024, the sector holds vast potential. States like Gujarat, Maharashtra, Rajasthan, Kerala, and Karnataka dominate this sector contributing 67% of recent installations. India has the potential to install a lot more rooftop solar systems, up to 32 gigawatts (GW) if the government provides subsidies. It means if the government initiates the subsidies it will help the country move towards cleaner energy.
At the beginning of the year Government of India announced Rooftop solar incentives in the interim budget 2024-25. Under this plan, every household will be provided with 300 free units in Prime Minister Surya Ghar Yojana.
ADB points out that these initiatives will support the government schemes deployment. It will be a great contribution to a sustainable energy infrastructure across the country.
https://www.mercomindia.com/adb-240-million-loan-rooftop-solar-india
