ADB Solar Loan Encourages India’s Push for Clean Energy
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The Asian Development Bank (ADB) has approved a US$ 240.5 million loan to fund rooftop solar systems in India to help boost the nation’s renewable energy efforts. This financing supports the second and third phases of the Solar Rooftop Investment Program, which were initially approved by the bank in 2016 and restructured in 2023 to focus on residential solar systems. The Bank’s funding aligns with the country’s goal to achieve 50 percent of its cumulative electric power capacity from non-fossil fuel sources by 2030.
Kaoru Ogino, Principal Energy Specialist, The Asian Development Bank (ADB), detailed that the financing would support the PM Surya Ghar: Muft Bijli Yojana, a program that aims to install rooftop solar systems nationwide. The funds will be distributed through the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD), providing loans to developers and end-users.
ADB will assign US$ 90.5 million from its Clean Technology Fund (CTF) to SBI, while NABARD will receive US$ 150 million, of which US$ 80 million from the ADB’s ordinary capital resources and US$ 70 million from CTF.
Rooftop solar systems are important for society as they offer benefits, such as reducing the technical and operational burden on power distribution, decreasing long-distance power supply needs, and minimizing system losses. This ultimately enhances energy efficiency and independence.