ADB Approves $240.5 Million Loan to Boost Rooftop Solar Systems in India

The Asian Development Bank (ADB) has approved a $240.5 million loan to support rooftop solar systems in India, according to news agency ANI.

Announced on Wednesday, this funding will help the second and third phases of the Solar Rooftop Investment Program, which ADB started in 2016. The program was updated in 2023 to focus on residential solar rooftop systems.

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“India aims to achieve about 50% of its total electric power capacity from non-fossil fuel sources by 2030, aligning with global efforts to reduce carbon emissions. ADB’s financing supports these goals and will contribute to the Prime Minister’s Surya Ghar program, which encourages rooftop solar installations nationwide,” said Kaoru Ogino, ADB’s Principal Energy Specialist.

The funds will be given to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). These banks will provide loans to developers and users across India for installing rooftop solar systems.

ADB will allocate $90.5 million from its Clean Technology Fund (CTF) to SBI, and NABARD will receive $150 million, which includes $80 million from ADB’s regular funds and $70 million from the CTF.

Rooftop solar systems offer significant benefits to the power distribution system. Generating electricity close to where it’s used reduces technical and operational challenges, lowers the need for long-distance power supply, and minimizes system losses. This proximity increases the efficiency of power distribution and provides a degree of energy independence, reducing power supply disruptions.

Moreover, installing rooftop solar systems aligns with India’s broader energy and environmental goals. Increasing renewable energy in the country’s energy mix helps reduce reliance on fossil fuels, cuts greenhouse gas emissions, and supports climate commitments.

ADB emphasized that deploying these systems supports the Prime Minister’s Surya Ghar program, promoting widespread rooftop solar installations and contributing to a more sustainable and resilient energy infrastructure nationwide.