Solar Investment Trusts (SEITs)

The briefing argues that India's rooftop solar sector faces significant investment barriers, including a lack of scale for debt financing and limited investor entry/exit options. It proposes Solar Investment Trusts (SEITs) as a vehicle to pool projects, diversify risk, and ensure transparency through SEBI regulation. The author estimates that SEITs could mobilize over USD 1 billion for rooftop solar within five years and reduce the cost of equity by 350-400 basis points, ultimately lowering the levelized cost of energy and increasing solar adoption.

• India requires approximately $40-50 billion in capital investment to reach its 2022 rooftop solar capacity target of 40 GW, a significant increase from the existing capacity of 1.3 GW.
• The rooftop solar sector is hindered by barriers such as the inability of small projects to raise debt, limited entry and exit options for investors, and a lack of public information which increases required returns.
• Solar Investment Trusts (SEITs) are proposed as investment vehicles structured as Infrastructure Investment Trusts (InvITs) under SEBI guidelines to provide diversification, mandatory listing for liquidity, and corporate governance.
• SEITs are estimated to potentially mobilize more than USD 1 billion for the rooftop solar sector over the next five years, with the broader clean energy sector potentially mobilizing USD 3-4 billion via InvITs.
• The implementation of SEITs could reduce the cost of equity by 350-400 basis points and increase the proportion of debt in the capital pool, thereby lowering the levelized cost of energy (LCOE).

APA

Climate Policy Initiative (2020). Solar Investment Trusts (SEITs). https://www.climatepolicyinitiative.org/publication/solar-investment-trusts-seits/

Chicago

Climate Policy Initiative. Solar Investment Trusts (SEITs). 2020. https://www.climatepolicyinitiative.org/publication/solar-investment-trusts-seits/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Solar Investment Trusts (SEITs) |date=28 August 2020 |url=https://www.climatepolicyinitiative.org/publication/solar-investment-trusts-seits/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2020solar, author = {{Climate Policy Initiative}}, title = {{Solar Investment Trusts (SEITs)}}, institution = {Climate Policy Initiative}, year = {2020}, month = aug, url = {https://www.climatepolicyinitiative.org/publication/solar-investment-trusts-seits/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }