ADB Approves $240.5 Million for Rooftop Solar Systems in India to Boost Renewable Energy

The installation of rooftop solar systems is expected to benefit the overall power distribution system by reducing technical and operational burdens.

The Asian Development Bank (ADB) has approved $240.5 million in loans to finance rooftop solar systems in India, supporting the country's efforts to expand energy access through renewable energy sources.

The financing will back tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, which was initially approved by ADB in 2016 and restructured in 2023 to focus on deploying residential solar rooftop systems.

Kaoru Ogino, ADB Principal Energy Specialist, highlighted: "India aims to achieve about 50% of 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 supports these goals and will contribute to the Prime Minister Surya Ghar program, which encourages people to install rooftop solar systems across the country."

The financing will be channeled through the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD), which will provide loans to developers and end-users across India for installing rooftop solar systems. Specifically, ADB will provide $90.5 million to SBI from its Clean Technology Fund (CTF), while NABARD will receive $150 million, consisting of $80 million from ADB's ordinary capital resources and $70 million from CTF.

The installation of rooftop solar systems is expected to benefit the overall power distribution system by reducing technical and operational burdens. By generating electricity close to where it is consumed, rooftop solar facilities minimize the need for long-distance power supply and the resultant system losses. This localized power generation also offers a degree of energy independence and reduces power supply disruptions.

The initiative aligns with India's broader environmental goals and contributes to the reduction of carbon emissions, supporting the nation's transition towards a sustainable energy future.