ADB approved a $240.5 million loan to fund rooftop solar systems in India, aiding the government’s efforts to boost energy access through renewable energy.
On Wednesday, the Asian Development Bank (ADB) announced it has sanctioned a loan of $240.5 million for rooftop solar systems, which will help the Indian government expand energy access using renewable energy.
The ADB-approved financing, a substantial $ 240.5 million, will be entrusted to the capable hands of the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (Nabard), ensuring efficient allocation and management.
These institutions will provide loans to developers and end-users nationwide to install rooftop solar systems.
The SBI will receive USD 90.5 million from the ADB’s Clean Technology Fund (CTF). Nabard will receive USD 150 million, which includes USD 80 million from ADB’s ordinary capital resources and USD 70 million from CTF.
The ADB informed that this financing will support tranches two and three of the multi-tranche financing facility (MFF) solar rooftop investment program, initially approved by the ADB in 2016. The program was restructured to focus specifically on deploying residential solar rooftop systems in 2023.
ADB’s principal Energy Specialist Kaoru Ogino’s emphasis on the financing’s alignment with India’s goal of having 50% of its electric power from non-fossil sources by 2030 and its significant contribution to the Prime Minister’s Surya Ghar program instils confidence in a brighter, more sustainable future for the nation.
