ADB approves USD 240.5 mn loan for rooftop solar systems in India
The Asian Development Bank (ADB) has approved a loan of USD 240.5 million to finance rooftop solar systems in India, aiding the government's efforts to expand energy access through renewable energy.
ANI
Jul 18, 2024 08:30 IST
New Delhi [India], July 18 (ANI): The Asian Development Bank (ADB) has approved a loan of USD 240.5 million to finance rooftop solar systems in India, aiding the government's efforts to expand energy access through renewable energy.
The ADB announced on Wednesday that this financing will support tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, initially approved by ADB in 2016. In 2023, the program was restructured to focus specifically on deploying residential solar rooftop systems.
"India aims to achieve about 50 per cent 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's Surya Ghar program, which encourages people to install rooftop solar systems across the country," said ADB Principal Energy Specialist Kaoru Ogino.
The approved financing will be allocated 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 throughout India for the installation of rooftop solar systems.
Specifically, ADB will provide SBI with USD 90.5 million from its Clean Technology Fund (CTF), while NABARD will receive USD 150 million--comprising USD 80 million from ADB's ordinary capital resources and USD 70 million from the CTF.
ADB stated that the installation of rooftop solar systems offers significant benefits to the overall power distribution system. It can reduce the technical and operational burden by generating electricity close to where it is consumed, thereby decreasing the need for long-distance power supply and the associated system losses. This proximity to the point of consumption enhances the efficiency of power distribution and provides a degree of energy independence, minimizing power supply disruptions.
Moreover, the implementation of rooftop solar systems aligns with India's broader energy and environmental goals. By increasing the share of renewable energy in the country's energy mix, India can reduce its reliance on fossil fuels, thereby cutting greenhouse gas emissions and advancing towards its climate commitments.
ADB highlighted that the deployment of these systems also supports the Prime Minister's Surya Ghar program, which is designed to encourage widespread adoption of rooftop solar installations, contributing to a more sustainable and resilient energy infrastructure across the country. (ANI)
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