The Asian Development Bank (ADB) has approved a USD 240.5 million loan to fund rooftop solar systems in India, supporting the government’s renewable energy expansion efforts.
The ADB announced that this financing will support tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, initially approved in 2016 and restructured in 2023 to focus on residential solar rooftop systems.
“India aims to achieve about 50 percent 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,” stated 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) to disburse loans across India to developers and end-users to install rooftop solar systems.
Specifically, ADB will provide SBI with USD 90.5 million from its Clean Technology Fund (CTF). At the same time, NABARD will receive USD 150 million–comprising USD 80 million from ADB’s ordinary capital resources and USD 70 million from the CTF.
ADB highlighted that rooftop solar systems offer significant benefits to the overall power distribution system. By generating electricity near consumption points, they reduce technical and operational burdens, lower reliance on long-distance power supply, and mitigate associated system losses. This proximity enhances distribution efficiency and fosters energy independence, minimizing disruptions in power supply.
Moreover, the implementation of rooftop solar systems aligns with India’s broader energy and environmental goals. By increasing the share of renewable energy in its energy mix, India can reduce its reliance on fossil fuels, resulting in lower greenhouse gas emissions and advancing its climate commitments.
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Resource: The Economic Times
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