The State Bank of India (SBI) announced it will provide Rs.4 billion (~$62.2 million) to private developers finance 100 MW of grid-connected rooftop solar projects in India. The financing is being provided by the SBI under a World Bank program. In May 2016, the World Bank and SBI signed agreements for a $625 million (~Rs.40.2 billion) facility to support India’s grid-connected rooftop solar program. The target is to finance 400 MW of grid-connected rooftop solar projects through this program.
Rooftop projects in India still are dependent on funding from World Bank and other development banks.
Developers that the SBI will be financing under this program include Azure Power, Amplus, and Cleanmax, among others. The capacity of the projects and programs financed range from 25 kW to 16 MW.
In November 2016, the World Bank has also approved a global environment facility (GEF) grant of $22.93 million (~Rs.1.55 billion) to enhance the installed capacity of grid-connected rooftop solar PV and strengthen the capacity of relevant institutions for widespread installation of solar rooftop in India.
Mercom recently reported that, the Asian Development Bank (ADB) has approved a $100 million (~Rs.6.46 billion) loan to the Punjab National Bank (PNB) that will finance large solar rooftop systems on industrial and commercial buildings in several states. In India, the rooftop solar sector is still in its early stages but with a lot of room to grow. Within the past two years, cumulative installations have reached around 850 MW (as of March 2017), according Mercom’s recently released Q1 2017 India Solar Market Update.
Wendy is a co-founder of Mercom Capital Group, the parent company of Mercom India. Wendy is a contributing editor at MercomIndia.com and is responsible for content quality across the company and products. She has over 15 years of business and finance experience in the energy and technology markets. In addition to Mercom, Wendy has written for many other clean energy-focused blogs and publications. More articles from Wendy Prabhu.