The World Bank has 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 (GRPV) and strengthen the capacity of relevant institutions for widespread installation of GRPV in India.
“The grid-connected rooftop solar program is critical to harnessing India’s solar potential,” said Junaid Ahmad, World Bank Country Director in India. “This additional financing will strengthen the capacity of key institutions and help in bringing international best practices to support the program fulfill its aim of developing at least 400 MW of GRPV across India.”
The additional GEF grant will support the overall $625 million (~Rs.42.38 billion) GRPV program, approved by the World Bank Board earlier this year, and a total program investment of $915 million (~Rs.62 billion) in solar rooftop development. It will provide incentives to State Bank of India to lend to riskier categories of GRPV customers such as the non-banking financial institutions, and small and medium enterprises to finance and install GRPV. It will also strengthen the investment climate for GRPV by building capacity of the main stakeholders involved in the expansion of GRPV.
India is targeting 40 GW of rooftop solar installations by 2022. However, rooftop installations have been slow to takeoff so far with approximately 600 MW installed to date according to Mercom India Project Tracker. This global environment facility by the World Bank will help rooftop installation activity by increasing access to funding.
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.