Rooftop Solar Private Sector Financing Facility

The Rooftop Solar Private Sector Financing Facility is a proposed financial instrument designed to accelerate the deployment of rooftop solar PV in India by bundling small projects into structured investments to attract institutional investors and reduce the cost of debt capital.

• Meeting the Indian government's 2022 target of 40 GW of rooftop solar power would require an estimated USD $34 billion. Even with a reduced target of 14 GW, the sector would need approximately $12 billion, with $8.3 billion of that being debt capital.
• The growth of the rooftop solar sector is hindered by the low availability and quality of debt capital, caused by investor lack of confidence in credit quality and a lack of interest in small deal sizes, as well as delays in loan disbursal and lending decisions.
• The Rooftop Solar Private Sector Financing Facility aims to overcome these barriers by bundling small projects into a single structured investment to attract institutional investors. This securitization process is intended to reduce the cost of debt by 0.5-3% and bring an additional USD $500 million of capital to the sector.
• The Facility is designed in two phases: an aggregation phase, which establishes a 24-month warehouse line of credit to provide loans to projects, and a securitization phase, which refinances that credit line by issuing asset-backed security bonds to domestic or international investors.
• The Facility, proposed and implemented by Azure Power and the International Finance Corporation (IFC), targets the addition of 168 MW of capacity during its 2017-2019 pilot phase and 500 MW by 2022, while creating 20,000 additional jobs between 2017 and 2022.

APA

Climate Policy Initiative (n.d.). Rooftop Solar Private Sector Financing Facility. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Rooftop-Solar-Private-Sector-Financing-Facility_Instrument-Overview-1.pdf

Chicago

Climate Policy Initiative. Rooftop Solar Private Sector Financing Facility. n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Rooftop-Solar-Private-Sector-Financing-Facility_Instrument-Overview-1.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Rooftop Solar Private Sector Financing Facility |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Rooftop-Solar-Private-Sector-Financing-Facility_Instrument-Overview-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiativendrooftop, author = {{Climate Policy Initiative}}, title = {{Rooftop Solar Private Sector Financing Facility}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Rooftop-Solar-Private-Sector-Financing-Facility_Instrument-Overview-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }