The State Bank of India (SBI) and the World Bank have announced ₹23.2 billion ($357 million) in credit facilities for seven Indian solar companies that will be used to develop grid-connected solar rooftop projects with an aggregate capacity of 575 MW. The companies receiving credit facilities include Adani Group, Hinduja Renewables, JSW Energy, Tata Renewable, Azure Power, Cleantech Solar, and Hero Solar Energy.
According to PTI, the line of credit is being made available under the SBI-World Bank Grid Connected Rooftop Solar PV program. The World Bank will provide the funds to SBI, which will then lend it on to the solar companies. The approval documents were handed to the companies at a solar rooftop conference organized by SBI.
According to SBI Chairman Rajnish Kumar, “Financing is being provided to those with sound technical capacity, relevant experience, and creditworthiness that meet SBI standards.”
SBI has so far funded 43 grid-connected rooftop solar projects worth ₹27.66 billion (~$0.43 billion) under the SBI-World Bank Grid-Connected Rooftop Solar PV program. The projects have a combined capacity of 695 MW.
The bank’s renewable energy loan portfolio currently stands at ₹120 billion (~$1.85 billion). Earlier, in May 2016, the World Bank and SBI also signed agreements for a $625 million (~Rs.40.2 billion) facility to support India’s grid-connected rooftop solar program.
Government-owned SBI is one of the most active lenders for solar projects in India. In April 2017, the European Investment Bank (EIB) approved a EUR 200 million (~₹13.8 billion), 20-year loan for the SBI to help develop large scale solar projects in India.
In June of this year, SBI announced that it would provide ₹4 billion (~$62.2 million) to private developers to finance 100 MW of grid-connected rooftop solar projects in India. Funding recipients under this program were expected to include Azure Power, Amplus, and Cleanmax, among others. The capacity of the projects and programs to be financed ranged from 25 kW to 16 MW.
In June 2017, SBI issued a loan of ₹68.3 million (~$10.5 million) to Azure Power, an Indian solar power producer, to develop grid-connected rooftop solar projects.
Raj is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.