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Seneca ESG
- July 7, 2022
The World Bank has approved USD165m in additional financing to support India’s residential sector to deploy rooftop solar systems and make solar energy more affordable, as reported by PV Tech on July 4. The funding is expected to reduce 13.9m tons of greenhouse gas emissions by raising the rooftop solar capacity of India’s residential sector to 450 megawatts (MW). Previously, the World Bank had offered USD648m of financing for India’s Grid-Connected Rooftop Solar Program which mainly focuses on commercial and industrial rooftop photovoltaic (PV) systems. According to the world bank, the new scheme will provide preferential financing to solar power developers and residential consumers and encourage private capital to enter the rooftop solar industry. Notably, the USD165m financing is included in the World Bank’s USD1.915bn loan recently provided to India, which will be invested in the country’s healthcare, private investment, and residential sectors.
The financing for the rooftop solar projects could help India realize its target of generating 50% of its energy needs from renewable sources by 2030. According to the country’s renewable roadmap, it will raise the installed capacity of renewable power from 101 gigawatts (GW) in 2021 to 450 GW in 2030, which will comprise 280 GW of solar energy and 140 GW of wind power. Of the 280 GW solar power capacity, 40 GW will come from rooftop solar systems, compared to only 4 GW in 2021. For the development of the solar power industry, India’s Ministry of Finance in February allocated an additional INR195bn (USD2.62bn) to boost investment in solar equipment manufacturing.
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