Rooftop Solar Private Sector Financing Facility

The Rooftop Solar Private Sector Financing Facility aims to address the lack of high-quality debt capital in India's rooftop solar sector. By aggregating small projects into a structured investment, the facility intends to attract institutional investors and demonstrate the commercial viability of asset-backed securities. The proposed mechanism involves an aggregation phase using a warehouse line of credit, followed by a securitization phase to issue bonds to domestic and international investors. The facility targets the addition of 500 MW of capacity and 20,000 jobs by 2022, with an initial capital requirement of $100 million for its pilot stage.

• Meeting the Indian government's 2022 target of 40 GW of rooftop solar power would require an estimated USD $34 billion in financial resources; even a lower target of 14 GW would require approximately $12 billion, with $8.3 billion 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 decisions and disbursal.
• The proposed Financing Facility aims to bring an additional USD $500 million of capital to the sector, reduce debt costs by 0.5-3%, and create 20,000 additional jobs between 2017 and 2022.
• The facility's pilot phase (2017-2019) targets 168 MW of capacity, increasing to around 500 MW by 2022, based on securing 5% of the target market share in the commercial and industrial rooftop solar sector.
• The pilot stage requires approximately $100 million in capital from banks, development finance institutions (DFIs), and multilateral development banks (MDBs), including roughly $30 million in concessional loans and potentially an external credit guarantee from donors.

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} }