World Bank Invests $ 890 Million in India's Rooftop Solar Drive
The World Bank Group has pledged $890 million in funding to expedite India's national initiative for solar rooftops, aiming to provide clean energy to millions of households and generate 1.7 million jobs within the renewable energy manufacturing, installation, and services sectors.
The project has been approved by the Board of Executive Directors of the World Bank, as stated by the multilateral funding agency on Friday.
The financing arrangement for the program consists of an $820 million loan from the International Bank for Reconstruction and Development (IBRD), a $60 million concessional loan from the Clean Technology Fund, and a $10 million grant from IBRD's Livable Planet Fund, it noted.
Furthermore, the World Bank plans to secure $4.2 billion in private funding through commercial loans to assist in the installation of solar rooftops for homes, it stated.
India has pledged to reach net zero by 2070 and to elevate non-fossil-fuel energy sources to 60 percent of its electricity mix by 2035.
Although large-scale solar has expanded quickly, the uptake of residential solar has been restricted. To tap into this potential, the Government of India launched the PM Surya Ghar: Muft Bijli Yojana initiative to promote solar rooftop installations for 10 million urban and rural homes across the country, lower electricity expenses for households, and boost local production of solar rooftop technology.
Also Read: GIFT City Partners With Vietnam's Da Nang Financial Center
"The World Bank has been aiding India's solar rooftop industry for more than ten years, mobilizing upwards of $2 billion to spur market expansion from 500 MW to above 27 GW of installed capacity," stated Paul Proccee, World Bank Acting Country Director for India.
Also Read: SWPE Strengthens RIL Partnership with Contract Extension
This fresh funding will assist India in expanding residential solar, while generating job prospects throughout the supply chain and installation network, he mentioned.
Also Read: Starbucks Taps AI for In-House Software Development
"The initiative will reshape the residential solar sector by eliminating financial obstacles and enhancing the capabilities of distribution firms, banks, and suppliers to provide comprehensive service solutions," stated Moez Cherif, Task Team Leader of the initiative.