The loan approved by the Asian Development Bank (ADB) for India is aimed to support the country’s clean energy goals, which include rooftop solar adoption under the government’s flagship Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY).
The USD 650 million fiscal support by the multilateral development bank, which amounts to about ₹5,780 crore, will help almost 10 million households get affordable energy by 2027, said ADB in a statement on Tuesday.
The financing under ‘Subprogramme 1’ of the ‘Accelerating Affordable and Inclusive Rooftop Solar Systems Development Programme’ will support the PMSGMBY to make rooftop solar systems widely accessible nationwide, the statement further said.
The government’s objective in the near future includes installing 30 gigawatts of rooftop solar capacity to achieve annual reductions of 28.8 million tonnes of CO2 emissions, and delivering affordable solar energy to millions of households, which the loan will help in, the bank said.
ADB Country Director for India Mio Oka said the programme is aimed at accelerating India’s clean energy transition by making rooftop solar affordable and accessible for millions of households while creating green jobs, empowering women, and strengthening the financial health of the power sector.
Also Read: ‘India’s GDP loss due to climate change may touch 24.7 pc’
It will also remove long-standing barriers to rooftop solar adoption, including financing constraints and regulatory gaps, she added.
PMSGMBY will provide financial assistance to residential consumers for installing rooftop solar systems of up to 3 kilowatts (kW), with a 60 per cent subsidy for systems up to 2 kW and a 40 per cent subsidy for additional capacity between 2 kW and 3 kW.
“Key reform areas under the programme include developing uniform operational guidelines and quality standards for residential rooftop solar systems and facilitating mass adoption among low- and middle-income households through collateral-free, low-interest loans,” the statement said.
ADB’s financing for the programme includes USD 3 million in technical assistance to help implement reforms, build institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.
Aligned with India’s Nationally Determined Contribution targets, the programme will enhance the skills and capacity of at least 5,000 personnel, including 1,500 women.
“It will also support the development of utility-led aggregation models and model solar villages, and foster a robust vendor ecosystem”, it added.
The loan funds will also help catalyse private sector investment to create opportunities for manufacturers, vendors, and service providers across the renewable energy value chain, it said.
Follow us
