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ADB Approves Support for Rooftop Solar Systems in India
Context:
The Asian Development Bank (ADB) approved $240.5 million in loans to finance Rooftop Solar Systems (RTSS) in India that will help the government expand energy access using renewable energy.
More on News:
- Financing supports tranches 2 and 3 of Multitranche Financing Facility (MFF) Solar Rooftop Investment Program (SRIP).
- ADB will provide $90.5 million to the State Bank of India (SBI) from its Clean Technology Fund (CTF).
- National Bank for Agriculture and Rural Development (NABARD) will receive $150 million
- $80 million from ADB’s ordinary capital resources and $70 million from CTF.
Rooftop Solar Systems (RTSS) in India:
- India’s total renewable capacity reached 133.88 GW by the end of 2023, with solar contributing 55% and wind 33%.
- According to the Council on Energy, Environment and Water (CEEW), over 250 million Indian households have the potential to deploy 637 GW of rooftop solar capacity.
- One-third of this potential could meet the entire electricity demand of the Indian residential sector.
- However, as of 2023, India installed only 11.08 GW of grid-connected RTSS, against a target of 40 GW and 56.92 GW of ground-mounted solar plants.
- NITI Aayog noted that the lack of visibility into rooftop solar demand affects distribution companies’ forecasts.
- It recommended improving this visibility by developing a registration platform for solar pumps and rooftop systems.
- This data to be shared with distribution companies to enhance demand forecasting.
Solar Rooftop Investment Program (SRIP):
- It was approved by ADB in 2016 and restructured in 2023.
- It is a Multitranche Financing Facility (MFF), with Punjab National Bank (PNB) as borrower of Tranche 1 and subsequent tranches processed with SBI.
- NABARD is the additional borrower of the MFF.
- India provided a sovereign guarantee to the ADB for the SRIP.
- It intends to primarily finance residential rooftop systems, along with large solar rooftop systems on industrial and commercial buildings.
Contribution to Goals and Benefits of Rooftop Solar Systems (RTSS):
- The financing supports India’s goal of achieving 50% of electric power installed capacity from non-fossil fuel sources by 2030, in line with its commitments to reduce carbon emissions.
- It will contribute to the Prime Minister’s Surya Ghar program, which encourages people to install RTSS across the country.
- RTSS can benefit the power distribution system by generating electricity close to where it is consumed.
- This will reduce the need for long-distance transmission & associated losses.
- The International Energy Agency’s World Energy Outlook forecasts India will experience the largest growth in energy demand over the next 30 years.
- RTSS provides a degree of energy independence with fewer supply disruptions.
Rooftop Solar Index:
- It evaluates state-based policies and their effectiveness in promoting rooftop solar installations.
- Key aspects assessed include:
- Policy Framework
- Implementation Efficiency
- Public Awareness and Participation
- Financial Incentives
- Technological Integration
Government initiatives to promote Rooftop Solar Systems
- PM Surya Ghar Muft Bijlee Yojana: Aimed at installing rooftop solar systems on 1 crore households across India.
- Sustainable Partnership for RTS Acceleration in Bharat (SUPRABHA) and Sustainable Rooftop Implementation for Solar Transfiguration of India (SRISTI)
- Aim to accelerate RTS adoption through financial incentives, technological advancements, and awareness campaigns.
- Grid Connected Rooftop Solar Programme: Achieve a cumulative installed capacity of 40,000 MW from grid-connected rooftop solar projects.
- PM KUSUM (Kisan Urja Suraksha evam Utthan Mahabhiyan): Aimed at ensuring energy security for farmers and adding 34,800 MW of solar capacity by March 2026