The Asian Development Bank (ADB) is set to offer US$500 million in financing for PV rooftop systems that will help the Indian government spur energy access across the country.
ADB will provide the funding to Punjab National Bank — one of India’s largest commercial banks — which will utilise the financing to create loans for various developers and end users throughout India to install PV rooftop projects.
Anqian Huang, finance specialist in ADB's South Asia Department, said: “There is huge potential for India to expand its use of solar rooftop technologies because of the sharp drop in the price of solar panels, meaning the cost of producing solar energy is at or close to that from fossil fuels. Sourcing more solar energy will also help India meet the carbon emissions reduction target that it has committed to as part of the recent global climate change agreement.”
The financing is comprised of US$330 million from ADB and US$170 million from the multi-donor Clean Technology Fund administered by ADB.
When combined with an additional US$300 million in subproject equity investment and US$200 million in loans from commercial banks and other financial entities, the total cost of the Solar Rooftop Investment Program is tabbed at US$1 billion.
India’s government plans to increase the amount of energy generated from PV rooftop systems to 40GW by 2022. This is part of the larger goal set by the Jawaharlal Nehru National Solar Mission to boost the country’s overall PV generation to 100GW by 2022.