The World Bank on Wednesday approved USD 4.2 billion in private financing to accelerate India’s national rooftop solar programme, aiming to bring clean energy to millions of households and create an estimated 1.7 million jobs across the renewable energy manufacturing, installation and services value chain.
India has committed to achieving net zero by 2070 and increasing non-fossil-fuel-based energy resources to 60 per cent of its electricity mix by 2035. While large-scale solar has grown rapidly, residential solar adoption has been limited. To unlock this potential, the government of India established the PM Surya Ghar: Muft Bijli Yojana program to incentivise solar rooftop installation for 10 million rural and urban households nationwide, reduce household electricity costs and encourage local manufacturing of solar rooftop equipment.
Paul Proccee, Acting Country Director for India, World Bank, said 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.
The financing package for the programme includes a 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.
“The programme 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,” said Moez Cherif, Task Team Leader of the program. “Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills,” he added.
Also read: Cleaner economy shift can create more jobs: World Bank
Follow us
