Aggregation models and cheap financing could unlock rooftop solar for India’s SMEs

Facebook
Twitter
LinkedIn
Reddit
Email
opal Krishan Gupta, Joint Secretary (Ministry of New and Renewable Energy, Government of India) released report on Scaling up Rooftop Solar in the SME Sector in India. Credit: Deloitte and CIF

Adding rooftop solar to India's small-scale business sector will be critical in the rush to its countrywide 40GW rooftop PV by 2022 target, but a new report has highlighted key barriers and solutions.

The 'Scaling up rooftop solar in the SME sector in India' report from Deloitte and Climate Investment Funds (CIF) was based on a survey of 150 India's Micro, Small, and Medium Enterprises (MSMEs) in six Indian industries including rubber and plastic, pharmaceuticals, auto, paper, food and beverage, and textiles. The survey showed an overall willingness to adopt solar, but such intentions are limited by various issues.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Abhishek Bhaskar, energy specialist, CIF, said: “Limited access to finance, need to strengthen awareness, and escalating energy expenses are impacting the long-term profitability, competitiveness, and sustainability of the sector. However, it presents [a] great opportunity, and a multi-pronged approach involving supportive regulations, risk-bearing financing, and awareness building is needed to demonstrate viability and help scale up rooftop solar in the sector.”

The report offered a number of solutions, which included initially targeting the low hanging fruit industry clusters where the likelihood of success is higher.

It also suggested that a dedicated aggregation model could support the implementation of rooftop solar projects across the target MSME clusters, in response to difficulties with implementing large-scale rooftop projects under the OPEX model without special financial support.

To complement an aggregation drive, changing regulations to allow for group and virtual net metering would also be beneficial so that customers with unique profiles or those with not enough access to financing for large-scale systems can still be accommodated.

Deloitte and CIF also suggested supporting dedicated MSME-based portfolios within existing or new lines of concessional credit, as well as offering financial interventions such as interest subvention and the Partial Risk Guarantee Fund mechanism, through allocations from government budgets.

The unlikelihood of India reaching its rooftop solar target has been reported widely for some time, yet it is still seen as a new success story given that a very slow start in comparison to the large-scale ground-mount solar sector in India, has been followed by a steady welling of support and the sector is expected to grow rapidly each year in the near future. Industry members have also highlighted problems with subsidy dispersal in the household PV segment.

According to Bridge to India's 'India Solar Compass Q4 2018', India had 3,855MW of rooftop solar at the end of last year.

A World Bank and Clean Technology Fund (CTF) programme has already delivered financing to close to 300MW of capacity, working in close partnership with State Bank of India (SBI). The MSME sector is now being targeted as a potential area for future growth.

The World Bank has announced multi-million dollar financing support for India's rooftop PV sector several times in recent years.

Read Next

July 31, 2026
German solar research centre the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) has signed an agreement with Himachal Pradesh University to pursue research into floating solar PV.
July 31, 2026
Avaada has secured approximately US$1.3 billion in debt to fund a 2.15GW portfolio of hybrid and solar projects in Gujarat and Maharashtra.
July 29, 2026
ADB has approved an US$850 million loan to support the second phase of reforms for India's flagship residential rooftop solar programme.
Premium
July 28, 2026
INOX’s Devansh Jain talks the company’s shift from acquisition-led growth towards integrating its expanded clean energy platform.
July 27, 2026
Trinasolar, a Chinese module manufacturer, has started mass production of a 515W solar module developed exclusively for the Australian residential and commercial rooftop market, with first deliveries expected this month.
July 23, 2026
US perovskite solar technology company Caelux has signed two agreements with Indian solar manufacturers to produce perovskite-silicon “Hybrid Tandem” modules.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye