ADB Facilitates Expansion of Rooftop Solar in India

ADB approved USD 240.5 million to bolster rooftop solar in India under its Solar Rooftop Investment Program, aiming to enhance renewable energy usage. Funds will support residential installations via SBI and NABARD, aligning with India's goal to increase non-fossil fuel electricity capacity by 2030.

July 17, 2024. By EI News Network

The Asian Development Bank (ADB) has approved USD 240.5 million to drive the growth of rooftop solar installations across India,a move poised to amplify the nation's renewable energy footprint.

This financial endorsement marks a pivotal stride under tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program.

It may be noted that the funds were initially sanctioned by ADB in 2016 and reconfigured in 2023 to prioritize residential solar setups.

India's ambitious target of deriving 50 per cent of its cumulative electricity from non-fossil fuel sources by 2030 aligns seamlessly with global decarbonization commitments. ADB's injection of funds aligns with this vision, earmarked to fortify the Prime Minister Surya Ghar initiative, designed to proliferate rooftop solar systems nationwide.

Kaoru Ogino, ADB's Principal Energy Specialist, highlighted the strategic import of this initiative, stating, "ADB’s financing bolsters these objectives and underscores its commitment to the Prime Minister Surya Ghar program, encouraging widespread adoption of rooftop solar systems."

The financial infusion will be channeled through the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD), facilitating loans to developers and end-users across India for solar system installations. ADB's backing comprises USD 90.5 million from its Clean Technology Fund (CTF) to SBI, while NABARD receives USD 150 million, sourced from ADB’s ordinary capital resources and CTF.

Rooftop solar installations promise to alleviate strain on India's power distribution network, curtailing technical and operational burdens. By generating electricity close to consumption points, these systems mitigate the need for extensive power transmission, thereby reducing energy loss—a crucial step towards enhancing energy security and reliability.

It should be noted that with its establishment in the year 1966 and representation of 68 member nations, ADB remains steadfast in its mission to foster a prosperous, inclusive, resilient, and sustainable Asia-Pacific region, concurrently redoubling efforts to eradicate extreme poverty.

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