- ADB has approved a $240.5 million loan to boost India’s residential rooftop solar systems as part of its Solar Rooftop Investment Program.
- Funds will be distributed to SBI and NABARD to provide loans for rooftop solar installations, supporting India’s goal of 50% non-fossil fuel energy by 2030.
The Asian Development Bank (ADB) has approved a $240.5 million loan to accelerate India’s renewable energy expansion by funding rooftop solar systems.
This financing, announced on Wednesday, July 17, will support the second and third phases of the Solar Rooftop Investment Program, a Multitranche Financing Facility (MFF) initially approved by ADB in 2016. In 2023, the program was restructured to focus on deploying residential solar rooftop systems.
India aims to achieve about 50% of its cumulative electric power capacity from non-fossil fuel energy sources by 2030, which aligns with its global commitments to reduce carbon emissions. 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,” said Kaoru Ogino, ADB Principal Energy Specialist.
The approved funds will be distributed to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). These institutions will lend developers and end-users across India to install rooftop solar systems. 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.
Installing rooftop solar systems offers significant benefits to the power distribution system. Generating electricity near where it is consumed reduces technical and operational burdens, decreases the need for long-distance power supply, and minimizes system losses. This proximity enhances power distribution efficiency and provides a degree of energy independence, reducing power supply disruptions.
Furthermore, implementing rooftop solar systems aligns with India’s broader energy and environmental goals. Increasing the share of renewable energy in the country’s energy mix helps reduce reliance on fossil fuels, cuts greenhouse gas emissions, and advances towards climate commitments. ADB emphasized that deploying these systems supports the Prime Minister’s Surya Ghar program, aiming to promote the widespread adoption of rooftop solar installations and contribute to a more sustainable and resilient energy infrastructure nationwide.