World Bank approves financing for PM Surya Ghar rooftop solar programme
The World Bank’s Board of Executive Directors has approved a financing package to support India’s PM Surya Ghar: Muft Bijli Yojana programme, which aims to accelerate rooftop solar adoption among 10 million rural and urban households.
According to the World Bank, the programme is expected to expand access to clean energy, reduce household electricity costs and create about 1.7 million jobs across renewable energy manufacturing, installation and related services.
India has committed to achieving net zero emissions by 2070 and increasing the share of non-fossil-fuel-based energy resources to 60% of its electricity mix by 2035.
Financing package
The financing package comprises 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 IBRD’s Livable Planet Fund.
In addition, the World Bank said it will mobilise USD 4.2 billion in private financing through commercial loans to support rooftop solar installations for households.
The PM Surya Ghar: Muft Bijli Yojana was launched by the Government of India to promote residential rooftop solar installations by providing incentives for households while supporting domestic manufacturing of rooftop solar equipment.
Supporting rooftop solar
According to the World Bank, it has supported India’s rooftop solar sector for more than a decade, mobilising over USD 2 billion and contributing to the growth of installed rooftop solar capacity from 500 MW to more than 27 GW.
Paul Proccee, World Bank Acting Country Director for India, said: “The World Bank has been supporting India’s solar rooftop sector for over a decade, mobilizing more than $2 billion to catalyze 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.”
Moez Cherif, Task Team Leader of the programme, added: “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. Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills.”
The featured photograph is for representation only.
