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01/06/2017 06:29am

ADB-PNB sign $100 mn loan to finance solar rooftop systems on industrial and commercial buildings

image ADB-PNB sign $100 mn loan to finance solar rooftop systems on industrial and commercial buildings

New Delhi, June 1 (KNN) The Asian Development Bank (ADB) and the Punjab National Bank (PNB) have signed a USD 100 million loan to finance large solar rooftop systems on industrial and commercial buildings throughout India.

The loan will be guaranteed by the Government of India. PNB will use the ADB funds to make further loans to various developers and end users to install rooftop solar systems.

This is the first tranche loan of the USD 500 million multi tranche finance facility Solar Rooftop Investment Program (SRIP) approved by ADB in 2016.

The financing includes USD 330 million from ADB’s ordinary capital resources and USD170 million from the multi donor Clean Technology Fund (CTF) administered by ADB.  The first tranche loan of USD100 million would be financed entirely from the CTF. 

“With a sharp drop in the price of solar panels, India has a huge potential to expand its use of solar rooftop technologies,” said Kenichi Yokoyama, ADB Country Director in India who signed the loan on behalf of ADB.

“The program will contribute to the government’s plans to increase solar power generation capacity, and also help India meet the carbon emission reduction target in line with its commitment at the recent global climate change agreement,” he added.

India’s solar rooftop market is expanding fast with an estimated total capacity potential of 124GW. 

The entire Solar Rooftop Investment Program will cost USD1 billion, inclusive of ADB USD 500 million funding, and the projects financed under the program will install solar rooftop system of around 1 GW capacity. This will contribute to the climate change goal of reducing greenhouse gas emissions by about 11 million tons of carbon dioxide equivalent over the typical 25-year lifetime of rooftop solar systems.


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