Page 86 - GIZ CAFRI Report

Green Climate Fund

PAN India- TCCL

Name of the Project: Line of Credit for Solar rooftop segment for
commercial, industrial and residential housing sectors
Project Focus: Renewable Energy (Solar rooftop sector)

Location: : PAN India
Project Finance: USD 250 mn (Rs. 1625 Cr) (GCF Loan – USD
100 mn (Rs 650 Cr), Co-nancing: TCCL Loan- 100 mn (Rs 650
Cr) , Equity Investors– USD 50 mn (Rs 325 Cr)
Duration: 5 years (2019-2024); Ongoing
Name of Executing Entity: Tata Cleantech Capital Ltd.
CO2 emission reduction potential: 8.17 million tonnes of CO2
equivalent over 25 years.

Project Area: India aims to achieve 50% of its energy requirements from renewable energy by 2030. With India setting
the ambitious target of 500 GW by the year 2030 from non-fossil energy capacity this sector is now poised for a quantum
jump. As a part of clean climate commitments, India plans to install 40 GW of PV Rooftop Solar Systems by 2022. e
nancial resources required to set up 40 GW of rooftop solar power are estimated at USD 34 billion. However,
limitations in the availability of long-term debt nancing (i.e. with tenors of at least 12-15 years) may be encountered
relative to the investment needs associated to the proposed 40 GW capacity, as this type of tenor seems to be available
only from a limited number of nancing institutions. Commercial lenders are cautious in lending to
rooftop solar projects because there are high perceived risks and limited information on the
track records of rooftop solar investments. Even when banks lend to rooftop solar
projects, the high-risk perception and high per unit transaction cost has led to
high costs of borrowing, thereby negatively impacting IRR of the project.

e project approach is to provide long
term and concessional nance to
promote solar rooftop sector in the
country in alignment with the national
target to deploy 40 GW solar rooftop
capacity. It is the rst project of India
approved under the Private Sector
Facility of Green Climate Fund. e
project aims to deploy 250 MW solar
rooftop capacity across the country.
Air pollution due to coal
based power plants

Coal red power plant

86
Climate Change Interventions of
NABARD – A Glimpse