The Asian Development Bank (ADB) has sanctioned a loan of $240.5 million to fund rooftop solar systems in India, bolstering the nation's renewable energy expansion efforts, newswire ANI reported.
Announced on Wednesday, this financing will support the second and third tranches of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, initially approved by ADB in 2016. In 2023, the program was restructured to concentrate on deploying residential solar rooftop systems, the ANI report said.
"India aims to achieve about 50 per cent of cumulative electric power installed capacity from non-fossil fuel energy sources by 2030, which is 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," ADB Principal Energy Specialist Kaoru Ogino said.
The approved funds will be distributed to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). The report said that these institutions will provide loans to developers and end-users across India for installing rooftop solar systems.
ADB will allocate $90.5 million from its Clean Technology Fund (CTF) to SBI, while NABARD will receive $150 million, including $80 million from ADB's ordinary capital resources and $70 million from the CTF.
Installing rooftop solar systems brings significant benefits to the power distribution system. Generating electricity close to where it is consumed reduces the technical and operational burden, decreases the need for long-distance power supply, and minimizes system losses. This proximity enhances the efficiency of power distribution and provides a degree of energy independence, reducing power supply disruptions.
Furthermore, the implementation of rooftop solar systems aligns with India's broader energy and environmental goals. Increasing the share of renewable energy in the country's energy mix helps reduce reliance on fossil fuels, cuts greenhouse gas emissions, and advances towards climate commitments.
ADB emphasized that the deployment of these systems supports the Prime Minister's Surya Ghar program, which aims to promote the widespread adoption of rooftop solar installations, contributing to a more sustainable and resilient energy infrastructure nationwide.
(With Inputs from ANI)
