India Secures $2.5 Billion Debt Funding For Rooftop Solar Power Projects

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India has received a major funding boost from multilateral and international development banks for its ambitious rooftop solar power program.

The Ministry of New & Renewable Energy has announced that India’s rooftop solar power program is expected to receive low-cost debt funding worth $2.5 billion from several international development banks.

The World Bank has committed $620 million, while the Asian Development Bank and BRICS New Development Bank have pledged to provide $500 million and $250 million, respectively. The German development bank KfW has provided $100 million, and negotiations for $1.14 billion worth of funding are underway.

These funds will be made available to retail and commercial banks in India, including the State Bank of India, Punjab National Bank, and Canara Bank. Project developers will be able to secure loans from these Indian banks at low rates. 

India has set a target to have 100 GW of solar capacity operational by April 2022, including a target of 40 GW for rooftop solar power systems. Rooftop solar capacity represents just 10% of the 5 GW solar capacity currently operational in India. Increasing the capacity to 40 GW in about 6 years will be a gargantuan task.

The government has taken initiatives to boost the development of the sector. The Cabinet of Ministers recently approved a proposal that will increase the subsidy for rooftop solar power systems to $770 million by 2022, which is expected to be in addition to the debt funds raised from international development banks.

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An avid follower of latest developments in the Indian renewable energy sector.

Saurabh has 1037 posts and counting. See all posts by Saurabh

2 thoughts on “India Secures $2.5 Billion Debt Funding For Rooftop Solar Power Projects

  • Brilliant – literally!
    Hopefully solar power will do to India what hydropower did to Norway: drag the entire population out of poverty with ample amounts of cheap renewable electricity to power industrialization and development. The lack of need for importing fuel continues as a constant background “subsidy” to society, and improves the balance of trade with abroad

  • I wonder if they can restrict subsidies to locally made solar panels.

    For the rooftops of government schools and military bases they surely could.

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