Development banks to withdraw support for India’s PV sector

Facebook
Twitter
LinkedIn
Reddit
Email

The US Government-sponsored banks that have helped fund the takeoff of India’s fledgling solar industry may soon move to withdraw their support, according to an official at the Overseas Private Investment Corporation (OPIC).

Peter Ballinger, OPIC’s director, has said that the agency is rapidly approaching its lending limit for PV projects in India and opined that multilateral lenders like the Asian Development Bank (ADB) and the World Bank (WB) could shortly be forced to reassess their aid packages.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The ADB, WB and OPIC were among the first to invest in developing solar in India. However, such has been the success of the investment programme that projects in the country now account for 8.5% of OPIC’s total loan book, nearing its 10% limit for any one country.

India hopes to complete its first round of large-scale PV installations by January, and is planning to hold an auction for a further 350MW of projects later this month. In October Moser Baer installed India’s largest system to date, a 30MW system in the state of Gujarat, and national capacity now stands at 125MW.

Ballinger believes that, with the industry maturing, the time is right for development banks to start withdrawing support. “We’re supposed to be catalytic for new industries by providing financing at an early stage until more traditional lenders get comfortable with the risks of new technologies and businesses they’re unfamiliar with,” he said. “It may be time for commercial banks to step in to India’s solar sector now that it appears to be ramping up.”

Read Next

May 28, 2025
The expansion is 100% compliant with the Indian government's requirement of Bureau of Indian Standards (BIS).
May 28, 2025
Arevon Energy has finalised US$98 million in tax equity financing for a 265MW portfolio currently under construction in Indiana.
May 28, 2025
The German state of North Rhine-Westphalia has launched a Federal Council initiative to accelerate the development of floating solar (FPV) on artificial lakes.
May 28, 2025
Renewables developer Solaria has reached an agreement in principle with Spanish bank Banco Sabadell to finance a 175MW solar PV plant in Spain.
May 28, 2025
ISC Konstanz is working with US solar cell manufacturer Suniva on its 1GW silicon solar cell production facility in the state of Georgia.
May 28, 2025
In 2024, 20 million people improved their access to energy through the acquisition of solar energy kits (SEKs), according to GOGLA.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 8, 2025
Asia