Renewable Energy

REC targets 10 million rooftop solar installations, to lend Rs 1.2 trillion under Pradhan Mantri Suryodaya Yojana

Amlan Bibhudatta

Notable because

Despite various policy measures taken both at the centre and state levels, India’s rooftop solar story has underdelivered, missing the earlier 2022 target of 40 GW by a wide margin. A revision now targets the achievement of this capacity by 2026. In this context, REC has now announced its intention to lend INR 1.2 trillion ( ~USD 15 billion) towards rooftop solar. This is a timely move as finance is among the key levers for boosting rooftop solar.

What to look out for in the months ahead

Which category of consumers will avail this new dedicated line of credit?

Will these loans be extended on concessional terms?

Will states supplement this supply-side development with demand-side measures?