Business News | World Bank Supports India's Rooftop Solar Programme to Boost Clean Energy
Get latest articles and stories on Business at LatestLY. The World Bank's Board of Executive Directors has approved a financing package of USD 890 million to support India's national rooftop solar programme, aimed at expanding clean energy access to millions of households, creating jobs and attracting large-scale private investment.
New Delhi [India], July 10 (ANI): The World Bank's Board of Executive Directors has approved a financing package of USD 890 million to support India's national rooftop solar programme, aimed at expanding clean energy access to millions of households, creating jobs and attracting large-scale private investment.
According to an official statement by the World Bank, 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 IBRD's Livable Planet Fund.
In addition to the financing package, the World Bank will mobilise USD 4.2 billion in private financing in the form of commercial loans to help households install rooftop solar systems.
The World Bank said the programme is expected to create around 1.7 million job opportunities across the renewable energy manufacturing, installation and services value chain.
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The financing will support the Government of India's PM Surya Ghar: Muft Bijli Yojana, which aims to encourage rooftop solar installations in 10 million rural and urban households across the country.
The programme seeks to expand residential solar adoption, reduce household electricity costs and promote local manufacturing of rooftop solar equipment.
According to the World Bank, while India has witnessed rapid growth in large-scale solar projects, the adoption of rooftop solar in the residential segment has remained limited.
The PM Surya Ghar: Muft Bijli Yojana has been designed to unlock this untapped potential by providing incentives for households to install rooftop solar systems.
India has committed to achieving net-zero emissions by 2070 and increasing the share of non-fossil-fuel-based energy resources to 60 per cent of its electricity mix by 2035.
Commenting on the financing, Paul Proccee, World Bank Acting Country Director for India, said the institution has been supporting India's rooftop solar sector for more than a decade.
"The World Bank has been supporting India's solar rooftop sector for over a decade, mobilising more than USD 2 billion to catalyse 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," he said.
Moez Cherif, Task Team Leader of the programme, said the initiative would help transform India's residential solar market by addressing financing challenges and strengthening the capabilities of key stakeholders.
"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," he said. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)