ADB Approves $240.5M Loan for India's Rooftop Solar Expansion

Asian Development Bank (ADB) has sanctioned a $240.5 million loan to support India's rooftop solar systems. This funding will back tranches 2 and 3 of the Solar Rooftop Investment Program, initially approved in 2016, now targeting residential installations.

The Asian Development Bank (ADB) announced a $240.5 million loan to fund rooftop solar systems in India, boosting the government's renewable energy initiatives. This financing will support the second and third tranches of the Solar Rooftop Investment Program, which began in 2016 and now focuses on residential installations.

India aims for 50% of its electric power to come from non-fossil fuel sources by 2030, in line with its carbon reduction commitments. ADB's loan will aid these goals, aligning with the Prime Minister's Surya Ghar program that promotes rooftop solar system adoption across the country, according to ADB Principal Energy Specialist Kaoru Ogino. The money will be distributed to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) for loans to developers and users.

ADB will provide SBI with $90.5 million from the Clean Technology Fund (CTF), while NABARD will receive $150 million—$80 million from ADB and $70 million from the CTF. Rooftop solar installations benefit the power distribution system by generating electricity close to consumption points, reducing the need for long-distance transmission and associated losses, thus enhancing distribution efficiency and energy independence.

This initiative aligns with India's broader environmental objectives by increasing renewable energy share and reducing fossil fuel reliance, cutting greenhouse gas emissions, and supporting climate commitments. The rollout of rooftop solar systems extends beyond energy efficiency, contributing to a more robust and sustainable energy infrastructure, supporting the Prime Minister's Surya Ghar program's goals.

(With inputs from agencies.)