Additionally, World Bank has approved $120m co-financing loan on concessional terms through the International Bank for Reconstruction and Development (IBRD) and a $5m grant from Climate Investment Fund’s (CIF) Clean Technology Fund.
The funding will be used by the Indian government to develop at least 400MW of grid connected rooftop solar photovoltaic (GRPV) to generate clean energy while reducing greenhouse gas emissions.
World Bank India country director Onno Ruhl said: "India is endowed with huge solar energy potential, and the World Bank is strongly supportive of the government’s plans to harness this potential and increase India’s solar PV capacity to 100 GW.
"This project will support this target, by providing financing to some of the 40 GW of solar PV which will be placed on rooftops.
"Through this project and others like it, tens of millions of electricity customers will eventually be able to generate part of their own electricity needs, from one of the cleanest sources of energy."
India aims to increase its installed solar PV capacity to 100GW by 2022.
State Bank of India (SBI) will implement the financing project by on-lending funds to solar PV developers/aggregators and end-users.
The IBRD-CIF loan is expected to develop the market for rooftop solar PV systems, for which the overall potential demand is estimated at about 124,000MW.
World Bank project task team leader and senior energy specialist Mohua Mukherjee said: "Most importantly, the scope of the project will go beyond simply making finance available, it will also improve the investment climate for solar PV, and increase the `Ease of Doing Rooftop Business."
Image: India plans to have installed solar PV capacity of 100GW by 2022. Photo: courtesy of dan/ FreeDigitalPhotos.net.
