The Asian Development Bank (ADB) has approved a loan of $240.5 million to help finance rooftop solar systems in India. This loan supports the Indian government’s goal to increase renewable energy access. The loan is part of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, which ADB first approved in 2016.
The program was updated in 2023 to focus on residential solar rooftop systems. ADB Principal Energy Specialist Kaoru Ogino said this financing supports India’s aim to get 50% of its electric power from non-fossil fuel sources by 2030.
The money will go to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). These banks will then loan the funds to developers and users for installing rooftop solar systems.
ADB will give $90.5 million to SBI from its Clean Technology Fund (CTF), and NABARD will get $150 million, with $80 million from ADB’s ordinary capital resources and $70 million from the CTF. Installing rooftop solar systems will benefit the power distribution system by generating electricity close to where it is used, reducing the need for long-distance power supply and system losses.
This will make power distribution more efficient and provide more energy independence, reducing power supply disruptions. The deployment of these solar systems also supports the Prime Minister’s Surya Ghar program, which encourages the installation of rooftop solar systems across India. This aligns with India’s broader goals to increase renewable energy use, reduce reliance on fossil fuels, cut greenhouse gas emissions, and meet climate commitments.
