World Bank Backs India’s Rooftop Solar Plan With USD 890 Mn Funding

World Bank Backs India’s Rooftop Solar Plan With USD 890 Mn Funding New Delhi, Jul 11 (KNN) The World Bank’s Board of Executive Directors on Friday approved a USD 890 million financing package to support India’s national rooftop solar programme, aimed at expanding clean energy access, creating jobs and mobilising private investment. The funding will support the government’s PM Surya Ghar: Muft Bijli Yojana, which seeks to promote solar rooftop installations across 10 million households in both rural and urban areas. Financing Structure and Investment Push The package includes 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 the Livable Planet Fund, the World Bank said in a statement. In addition, the World Bank plans to mobilise around USD 4.2 billion in private financing through commercial loans to support household-level solar installations. Focus on Jobs and Energy Access The programme is expected to create nearly 1.7 million jobs across the renewable energy value chain, including manufacturing, installation and related services. It also aims to reduce electricity costs for households while encouraging domestic production of solar equipment. India has set a target of achieving net-zero emissions by 2070 and increasing the share of non-fossil fuel sources in its electricity mix to 60 per cent by 2035. Paul Proccee, World Bank Acting Country Director, India, said, “This new financing will help India scale up residential solar, while creating job opportunities across the supply chain and installation ecosystem.” Addressing Gaps in Rooftop Solar Adoption While large-scale solar capacity has expanded significantly in recent years, residential rooftop adoption has remained relatively limited. The scheme is designed to address this gap by offering incentives and improving access to financing for households. Strengthening Ecosystem and Capacity “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,” Moez Cherif, Task Team Leader of the program noted. “Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills,” Cherif added. (KNN Bureau)