MANILA, Dec. 2 (Xinhua) -- The Asian Development Bank (ADB) on Tuesday said it has approved a 650-million-U.S.-dollar policy-based loan to help India accelerate rooftop solar adoption and expand access to clean, affordable energy for 10 million households by 2027.
The financing will support the government's flagship initiative, Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY), which aims to make rooftop solar systems widely accessible nationwide.
PMSGMBY will provide financial assistance to residential consumers for installing rooftop solar systems up to 3 kilowatts (kW), with a 60 percent subsidy for systems up to 2 kW and a 40 percent subsidy for additional capacity between 2 kW and 3 kW.
Key reform areas under the program include developing uniform operational guidelines and quality standards for residential rooftop solar systems and facilitating mass adoption among low- and middle-income households through collateral-free, low-interest loans.
The program will enhance the skills and capacity of at least 5,000 personnel, including 1,500 women. It will also support the development of utility-led aggregation models and model solar villages, and foster a robust vendor ecosystem.
The ADB's intervention is expected to significantly contribute to the nationwide objective of installing 30 gigawatts of rooftop solar capacity, achieving annual reductions of 28.8 million tons of CO2 emissions, and delivering affordable solar energy to millions of households.
It will also catalyze private sector investment to create opportunities for manufacturers, vendors, and service providers across the renewable energy value chain.
The ADB's financing for the program includes 3 million dollars in technical assistance to help implement reforms and build institutional capacity in the rooftop solar sector. ■