World Bank supports India's rooftop solar programme to boost clean energy
New Delhi, July 10
The World Bank's Board of Executive Directors has approved a financing package of USD 890 million to support India's national rooftop solar programme, aimed at expanding clean energy access to millions of households, creating jobs and attracting large-scale private investment.
According to an official statement by the World Bank, the financing package comprises an USD 820 million loan from the International Bank for Reconstruction and Development (IBRD), a USD 60 million concessional loan from the Clean Technology Fund and a USD 10 million grant from IBRD's Livable Planet Fund.
In addition to the financing package, the World Bank will mobilise USD 4.2 billion in private financing in the form of commercial loans to help households install rooftop solar systems.
The World Bank said the programme is expected to create around 1.7 million job opportunities across the renewable energy manufacturing, installation and services value chain.
The financing will support the Government of India's PM Surya Ghar: Muft Bijli Yojana, which aims to encourage rooftop solar installations in 10 million rural and urban households across the country.
The programme seeks to expand residential solar adoption, reduce household electricity costs and promote local manufacturing of rooftop solar equipment.
According to the World Bank, while India has witnessed rapid growth in large-scale solar projects, the adoption of rooftop solar in the residential segment has remained limited.
The PM Surya Ghar: Muft Bijli Yojana has been designed to unlock this untapped potential by providing incentives for households to install rooftop solar systems.
India has committed to achieving net-zero emissions by 2070 and increasing the share of non-fossil-fuel-based energy resources to 60 per cent of its electricity mix by 2035.
Commenting on the financing, Paul Proccee, World Bank Acting Country Director for India, said the institution has been supporting India's rooftop solar sector for more than a decade.
"The World Bank has been supporting India's solar rooftop sector for over a decade, mobilising more than USD 2 billion to catalyse market growth from 500 MW to over 27 GW of installed capacity. This new financing will help India scale up residential solar, while creating job opportunities across the supply chain and installation ecosystem," he said.
Moez Cherif, Task Team Leader of the programme, said the initiative would help transform India's residential solar market by addressing financing challenges and strengthening the capabilities of key stakeholders.
"The program will transform the residential solar market by removing financial barriers and building the capacity of distribution companies, banks, and vendors to deliver integrated service solutions. Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills," he said.
— ANI
Reader Comments
Finally some concrete steps towards our 2070 net-zero target! But I'm curious about the "collateral-free financing" - will banks actually lend easily or will there be hidden charges? Also, what about maintenance of these rooftop panels in monsoon seasons? 🤔
As someone working in renewable energy sector in the US, this is impressive. India's rooftop solar growth from 500 MW to 27 GW is remarkable. But the residential segment needs more innovative financing models - hope this World Bank support creates a sustainable ecosystem rather than just a subsidy-driven boom.
Good initiative but 1.7 crore households by 2030? That's ambitious! Even small apartments in cities have issues with RWA permissions for solar panels. And what about the poor families who can't afford even collateral-free loans? The free electricity scheme should prioritize them first. 🙏
This is fantastic news! My father runs a small solar installation business in Gujarat and he says demand has already increased after the PM scheme. The 1.7 million job creation estimate seems realistic - we need more trained technicians for installation and maintenance. Hope the government also focuses on local manufacturing to reduce import dependence.
World Bank supporting India's clean energy is good. But why do we always need foreign loans for our development? We are the 5th largest economy - shouldn't we fund our own green transition? 820 million USD loan will have interest too. Still, if it helps common man get cheaper electricity, I'm not complaining. 💡
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