The Asian Development Bank(ADB) has approved a policy-based loan totaling $650 million to support the Government of India in accelerating the adoption of rooftop solar systems in India. adoption of rooftop solar systemswith the goal of expanding access to clean and affordable energy to 10 million households in the country by 2027.
The installation of rooftop solar systems
This funding will go to Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Development Program, which supports the government’s flagship initiative, Pradhan Mantri Surya Ghar: Muft Bijli Yojana(PMSGMBY), which aims to make rooftop solar systems affordable across the country, especially for low- and middle-income communities.
The program is accelerating India’s clean energy transition by removing barriers that previously prevented the adoption of rooftop solar, such as financial constraints and regulatory loopholes.
It is making solar energy affordable and accessible to millions of households, while creating green jobs, empowering women and strengthening the financial health of the electricity sector.
Mio Oka, ADB country director for India.
PMSGMBY will offer financial assistance to residential consumers for the installation of rooftop solar systems up to 3 kilowatts, with a 60% subsidy for systems up to 2 kW and a 40% subsidy for additional capacity between 2 kW and 3 kW.
Program reforms include developing uniform operating guidelines, quality standards for residential solar systems, and facilitating their adoption through unsecured, low-interest loans.
ADB’ s intervention is also estimated to help India achieve its national target of installing 30 gigawatts of rooftop solar capacity, resulting in an annual reduction of 28.8 million tons of CO₂ emissions, while supplying affordable solar power to millions of households.
On the other hand, the financing will promote private sector investment, creating opportunities for manufacturers, suppliers and service providers along the entire renewable energy value chain.
ADB’s financing for this program includes $3 million in technical assistance, aimed at implementing reforms, building institutional capacity, and promoting gender-inclusive participation in the rooftop solar sector.
Source: ABD