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Orb Energy, a vertically integrated provider of solar energy solutions in India, announced it had received a $20 million follow-on loan for a tenor of up to 10 years from the United States International Development Finance Corporation (DFC).
The company aims to utilize the loan to finance the construction of a 25 MW ground-mounted solar power park and a portfolio of rooftop solar power projects in Karnataka.
The project was reviewed under DFC’s 2020 Environmental and Social Policy and Procedures and was determined to be categorically eligible.
Orb Energy received its first loan from DFC for $10 million to support its in-house finance for small and micro enterprises (SMEs). The company so far has sold more than 160,000 solar systems in India, with cumulative installations of approximately 170MW of rooftop solar systems.
“We are delighted that the DFC has decided to back Orb Energy again with a second loan of $20 million. We will be using these funds to extend further finance to our SME customers to enable them to gain quick and easy access to the rooftop and ground-mounted solar systems from Orb that can dramatically improve their competitiveness,” Damian Miller, CEO and co-founder of Orb Energy said.
U.S. International Development Finance Corporation (DFC) is America’s development finance institution that partners with the private sector to finance solutions to critical challenges facing today’s developing world.
Jake Levine, DFC’s Chief Climate Officer, said, “DFC’s second loan to Orb Energy will further expand renewable energy use by SMEs across India. With DFC’s loan, Orb Energy’s work will create additional jobs and cut energy costs for businesses, boosting economic growth in a sector that is key to India’s development goals.”
In June, World Bank approved $165 million to accelerate the adoption of rooftop solar by residential consumers in India by making it more affordable.
According to Mercom’s India Solar Market Leaderboard 1H 2021 Report, Orb Energy was one of India’s top rooftop solar installers in the first half of the calendar year 2021. The company also won the award for the ‘Best C&I Project (Rooftop)’ at the Mercom India Solar Summit 2021.