The World Bank’s Board has approved $625 million loan to support India’s grid connected rooftop solar programme to generate clean energy. The Board also approved a co-financing loan of $120 million on concessional terms and a $5 million grant from Climate Investment Fund’s (CIF) Clean Technology Fund. 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 GHG 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, which will on-lend funds to solar PV developers/ aggregators and end—users, who wish to invest in mainly commercial and industrial rooftop PV systems. Financing will be provided to those with sound technical capacity, relevant experience, and creditworthiness as per SBI standards.

India is endowed with huge solar energy potential, and the World Bank is strongly supportive of the government’s plans to harness this potential and increase India’s solar PV capacity to 100 GW. The loan, from the International Bank for Reconstruction and Development (IBRD), has a 19.5 year grace period, and a maturity of 20 years. Loan from CIF’s Clean Technology Fund, has a 10 year grace period, and a maturity of 40 years.