ADB Pumps $240M into India's Rooftop Solar Boom

The Asian Development Bank (ADB) has approved a $240.5 million loan to expand rooftop solar systems across India, aiming to increase energy access through renewable sources. This funding supports the second and third tranches of the Solar Rooftop Investment Programme, initially approved in 2016 and restructured in 2023 to focus on residential solar installations.

India's goal is to achieve 50% of its electric power capacity from non-fossil fuel sources by 2030, aligning with its global carbon reduction commitments. ADB's financing aids these efforts and contributes to the Prime Minister Surya Ghar program, which promotes the installation of rooftop solar systems nationwide.

The loans will be distributed to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). Specifically, ADB will provide $90.5 million from its Clean Technology Fund to SBI and $150 million to NABARD, with $80 million from ADB's ordinary capital resources and $70 million from the Clean Technology Fund.

Rooftop solar systems benefit the power distribution network by reducing technical and operational burdens. They generate electricity near consumption points, cutting the need for long-distance supply and associated losses, thereby enhancing energy independence and resilience.

Established in 1966, ADB includes 68 member countries focusing on Asia and the Pacific. The bank is committed to fostering inclusive, resilient, and sustainable development while combating extreme poverty.

News by Rahul Yelligetti