The Manila-based Asian Development Bank (ADB) will provide $500 million in financing for rooftop solar systems that will help the Indian government expandenergy access using renewable energy.
ADB will provide the financing to the public sector Punjab National Bank – one of India’s largest commercial banks – which will use the funds to give loans to various developers and end users throughout India to install rooftop solar systems. “There is huge potential for India to expand its use of solar rooftop technologies because of the sharp drop in the price of solar panels, meaning the cost of producing solar energy is at or close to that from fossil fuels,” said Anqian Huang, finance specialist in ADB’s South Asia Department. “Sourcing more solar energy will also help India meet the carbon emissions reduction target that it has committed to as part of the recent global climate change agreement.” A press release from ADB said the financing would comprise $330 million from the bank and $170 million from the multi-donor Clean Technology Fund administered by it. This funding should mean that 11 million fewer tons of greenhouse gases are emitted over the typical 25-year lifetime of solar rooftop systems, it said.