ADB approves $240.5 mn loan for rooftop solar systems in India

As of Q1 FY25, India’s rooftop solar (RTS) capacity stands at 12.9 GW. India missed its earlier target of 40 GW by 2022 by a wide margin. The revised target is now to achieve this capacity by 2026. The MNRE launched the PM Surya Ghar Yojana to boost RTS uptake, aiming to install RTS in one crore households. The loan approval by ADB is timely, as finance is among the key levers for RTS.

The approved financing will be allocated to SBI and NABARD to provide loans to end consumers and developers.

It has to be seen whether loans will support various  RTS business models to address adoption challenges across regions. Additionally, will VNM and GNM procurement models be financed under the facility in areas with roof constraints?