SBI to Finance Rs 400 crore for 100 MW of Rooftop Solar Power Projects

With the World Bank-funded capacity development program, the SBI aims to expand and incentivize the market for rooftop solar power projects by way of low cost financing.

The State Bank of India has announced its decision to finance 100 MW Solar Power Project worth Rs 400 crore. To this regard, the SBI has secured a loan worth USD 625 million from the World Bank for on-lending to viable Grid-Connected Rooftop Solar PV (GRPV) projects undertaken by PV developers/aggregators and end-users, for installation of rooftop solar systems on the rooftops of commercial, institutional and industrial buildings.

Implementation of the program by the SBI will support the installation of more than 600 MW of rooftop solar capacity.

With the World Bank-funded capacity development program, the SBI aims to expand and incentivise the market for rooftop solar power by way of low cost financing.

Karnam Sekar, Deputy Managing Director, SBI said told the ANI that in order to accelerate demand for rooftop solar systems in the market, SBI has developed financing models that will provide loans at a very competitive pricing with long tenor. Several capacity building measures and awareness programs are being undertaken to sensitize operating functionaries. So far, SBI has sanctioned GRPV projects with aggregate capacity of 100 MW, and proposals are in the pipeline with aggregate capacity of around 125 MW.

Aided by government policy and declining costs, rooftop solar has the potential to transform the energy sector.

Riccardo Puliti, Senior Director, World Bank told the publication that Solar PV will not only improve access to electricity, but it will do so in a manner that avoids the environmental impacts of other traditional electricity sources. Through this project and others like it, tens of millions of electricity customers will eventually be able to generate part of their own electricity needs, from one of the cleanest sources of energy available.

The World Bank-Clean Technology Fund (CTF) loan will support a number of solar PV business models, to expand the reach of rooftop PV systems to a variety of customer groups. A range of options available to investors under the SBI Rooftop PV Program will include third-party ownership, leasing, rooftop rental, as well as direct end-user ownership.

The World Bank is also providing a Global Environment Facility (GEF) grant to support the overall capacity development of the sector. This grant will support an innovative risk mitigation mechanism to enable lending to small and medium enterprises (SME), commercial and industrial customers for GRPV, and to support strengthening of the investment climate and capacity building of the main stakeholders involved in the expansion of GRPV.