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

July 2, 2025
A new state-owned green bank, the Energy Security Corporation (ESC), has launched in New South Wales, Australia, with an initial funding allocation of AU$1 billion (US$640 million).
July 2, 2025
Asset management firm Capital Dynamics has secured €110 million (US$129.4 million) in financing for three solar PV projects in Spain.
July 2, 2025
The US Senate has narrowly passed – with a 51-50 vote and with vice-president JD Vance breaking the tie – the reconciliation bill yesterday (1 July) without the solar and wind excise tax.
Premium
July 2, 2025
ANALYSIS: China's leading PV manufacturers are locked in a new round of competition, aiming to outpace each other through record-breaking feats.
July 2, 2025
Investment manager Quinbrook Infrastructure Partners has begun commercial operations at a 373MW solar PV plant in the UK.
July 2, 2025
Indigenous-led renewable energy company Yindjibarndi Energy Corporation (YEC) has submitted plans for a hybrid wind and solar PV renewable energy project to the Australian government’s Environment Protection and Biodiversity Conservation (EPBC) Act.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK