US$50mn from ADB for rooftop solar loans through Sri Lankan banks
ECONOMYNEXT – The Asian Development Bank (ADB) has given Sri Lanka 50 million US dollars (eight billion rupees) for lending through banks and financial institutions for customers to buy rooftop solar power panels at eight percent annual interest.
Households and entrepreneurs will be provided maximum credit facilities up to 7. 5 million rupees under the Enterprise Sri Lanka project, the Ministry of Finance said in a statement.
The Department of Development Finance of the Ministry of Finance, the implementing agency of the project, will coordinate with the selected banks and financial institutions to provide credit facilities to the customers to buy rooftop solar panels from suppliers who have registered under the Sustainable Energy Authority.
The Ceylon Electricity Board (CEB) and Lanka Electricity Company Ltd (LECO) will give technical recommendations to financial institutions on technical proposals of the customers
They will review and approve applications for connecting solar rooftop systems to the distribution network.
It is expected to add 50 MW to the national grid under this project.
Customers can also sell extra electricity to the grid under the net metering system
“The main objective of this project is to support government’s “Battle for Solar Power Programme” to achieve the target of 200 MW by 2020 and 1000 MW by 2025 through solar power generation,” the statement said.
“Clean and sustainable power generation will be enhanced through the proposed project by increasing debt facilities and funding for the rooftop solar power generation, developing solar rooftop market infrastructure and bankable subproject pipeline.”
(COLOMBO, 18 September, 2018)