India to use tax-free bonds for funding renewable energy projects

Facebook
Twitter
LinkedIn
Reddit
Email

State-owned companies including the Indian Renewable Energy Development Agency (IREDA), Power Finance Corp (PFC) and Rural Electrification Corp (REC) plan to raise around INR50 billion (US$779 million) through the sale of tax-free bonds for renewable energy projects in India.

IREDA director of finance SK Bhargava told PV Tech that IREDA alone has made a request for around INR20 billion, but has not yet received final confirmation of the amount.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • 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

He added: “The purpose of raising this money is to put online renewable energy projects. Renewable energy projects have to be promoted in India. These are the key funds which have to be provided for this sector. That is why the government of India has decided to put in some money to tax-free bonds.”

The green bonds will help India’s plan to raise renewable energy capacity to 175GW by 2022, of which 100GW will be solar.

Local reports said the companies will lend the money to solar energy developers at a low interest rate of 10.5%.

Last week, India was forecast to enter the top five countries for solar capacity this year, moving up from tenth place last year, according to consultancy firm Bridge to India’s annual report.

Meanwhile a PV Tech analysis also looked behind the numbers of India’s 100GW solar target.

Read Next

August 29, 2025
Chinese module maker JA Solar has launched DesertBlue, a PV module designed for desert and semi-arid regions. 
August 29, 2025
Independent power producer (IPP) Verano Energy has closed a US$204 financing for a 83MW/660MWh solar-plus-storage project in Chile.
August 29, 2025
The first half of 2025 has been the strongest year for UK solar energy generation on record, according to a new report think tank Ember.
August 29, 2025
US-based climate insurance provider kWh Analytics has launched a new renewable energy insurance cover for extreme weather events.
August 29, 2025
US grid interconnection agreements grew by 33% in 2024, reaching 75GW, with three-quarters signed for solar PV and battery energy storage system (BESS) projects, according to a new report from energy market analyst Wood Mackenzie.
August 29, 2025
Meridian Energy and Nova Energy have established a JV to build and operate a 400MW solar plant in Rangitaiki near Taupo in New Zealand.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines