The GCF board last month approved a proposal from India’s National Bank for Agriculture and Rural Development (NABARD) for a line of credit to develop commercial, industrial and residential rooftop solar projects.
The scheme, which will be executed through Tata Cleantech Capital, represents the India’s first private sector proposal approved by the GCF.
It aims to offer loans from a $250m fund for rooftop solar PV systems totalling 250 MW. According to NABARD, it will also focus on providing energy access for vulnerable regions and support for micro, small and medium businesses.
The scheme will help to develop India’s rooftop solar financing market with the aim of meeting the country’s 40 GW target by 2022.
The GCF is a financial arm of the United Nations Framework Convention on Climate Change (UNFCCC) with a portfolio of $3730m invested in helping developing countries reduce emissions and prepare for climate change.