The World Bank’s Board has approved 625 million dollars loan to support India’s grid connected rooftop solar programme to generate clean energy.
The loan will be provided by the International Bank for Reconstruction and Development (IBRD), lending arm of World Bank and has a maturity of 20 years and a 19.5 year grace period.
The project will finance the installation of at least 400 MW of grid connected rooftop solar photovoltaic (GRPV) across India.
These solar PV installations will provide clean, renewable energy and reduce Green House Gases (CHGs) emissions by displacing thermal generation.
The project will also strengthen the capacity of key institutions and support the development of the overall solar PV market.
It will be implemented by the State Bank of India (SBI) which will on-lend funds to solar PV aggregators/developers and end-users, who wish to invest in mainly industrial and commercial rooftop PV systems.
Financing to these aggregators/developers will be provided to those with sound technical capacity, creditworthiness and relevant experience as per SBI standards.
The Board also approved a co-financing loan of 120 million dollars on concessional terms and a 5 million dollars grant from Climate Investment Fund’s (CIF) Clean Technology Fund. The co-financing loan has maturity of 40 years and a 10 year grace period.