New Delhi: The World Bank’s Board of Executive Directors has approved a USD 890 million financing package to support India’s national rooftop solar programme.
The programme aims to expand clean energy access to millions of households and create around 1.7 million jobs across the renewable energy manufacturing, installation and services value chain.
The funding will support the Indian government’s PM Surya Ghar: Muft Bijli Yojana, which aims to install rooftop solar systems in 10 million rural and urban households. The programme is expected to reduce household electricity bills, promote clean energy adoption and encourage domestic manufacturing of rooftop solar equipment, the bank said in a press release.
India has committed to achieving net-zero emissions by 2070 and increasing the share of non-fossil fuel-based energy to 60% of its electricity mix by 2035. While utility-scale solar capacity has expanded rapidly, the adoption of residential rooftop solar has remained relatively limited.
Paul Procee, Acting Country Director for India at the World Bank, said the institution had been supporting India’s rooftop solar sector for more than a decade. He said the World Bank had mobilised over USD 2 billion, helping expand installed solar capacity from 500 MW to more than 27 GW. Procee added that the new financing would help India scale up residential rooftop solar while creating employment opportunities across the supply chain and installation ecosystem.
The financing package includes a USD 820 million loan from the International Bank for Reconstruction and Development (IBRD), a USD 60 million concessional loan from the Clean Technology Fund, and a USD 10 million grant from the IBRD’s Livable Planet Fund.
In addition, the World Bank will mobilise USD 4.2 billion in private financing through commercial loans to help households install rooftop solar systems.
Moez Cherif, Task Team Leader of the programme, said the initiative would transform the residential rooftop solar market by removing financial barriers and strengthening the capacity of distribution companies, banks and vendors to deliver integrated service solutions. He added that collateral-free financing would enable households to install rooftop solar systems and significantly reduce their monthly electricity bills.
