USAID, DFC to provide $41 million financings for renewable energy in India

Washington DC, March 19: In a significant move, United States Agency for International Development and US International Development Finance Corporation (DFC) is jointly sponsoring a $41 million loan guarantee program to finance the investment in renewable energy solutions by Indian Small & Medium Enterprises (SMEs).

 

 

 

This load amount will help to finance the investments by Indian SMEs for renewable energy solutions and rooftop solar installations. These loans will enable the SMEs to access reliable power and cut costs.

 

At the signing of the guarantee agreement,  India’s Acting Mission Director Karen Klimowski stated, “USAID/India is pleased to promote power diversification and support local businesses in India. Investments in solar solutions, secured by these credit guarantees, will improve access to clean, steady, and affordable energy as well as further progress towards India’s clean energy transition and climate change mitigation.”

 

According to the statement issued by USAID, investments in solar solutions, which will be secured by the credit guarantees, will help in improving the access to clean, steady, and affordable energy. It will also help in furthering the progress towards clean energy transition and climate change mitigation in India.

 

India’s commercial and industrial sectors pay high fees for their electricity, making rooftop solar a sustainable, cost-saving investment, but SMEs and residential consumers face obstacles in securing the financing needed to install and use rooftop panels. SMEs account for 48 percent of the total energy consumed in India’s industrial sector. Rooftop solar power generation offers a win-win. Lower monthly energy costs drive important social benefits, including job creation and economic growth, while reducing carbon emissions and improving air quality..

.