India Secures $197.67 Mn Rooftop Solar Expansion support from Word Bank's MIGA

India has secured a $197.67 million guarantee from the guarantee arm of the World Bank Group to advance its rooftop solar expansion plans.

The five-year guarantee supports the refinancing of a $500 million World Bank loan extended to the State Bank of India (SBI) for grid-connected solar systems catering to commercial and industrial consumers.

The guarantee has been issued by the Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantee Platform. According to a media release, MIGA provided the backing to Citibank for its non-shareholder loan to SBI.

Strengthening Grid-Connected Rooftop Solar

The refinanced loan supports a national initiative focused on deploying grid-connected rooftop solar photovoltaic (GRPV) systems for commercial and industrial users across India.

SBI originally launched the rooftop solar programme in 2016 with financial and technical support from the World Bank. The objective was to demonstrate the commercial viability of rooftop solar installations in the commercial and industrial segments, helping unlock broader market participation.

The World Bank-supported initiative enabled SBI to attract international commercial lenders and mobilise private capital. The latest International Bank for Reconstruction and Development (IBRD) Implementation Report confirms that 1,004 MW of GRPV capacity was installed under the programme.

“MIGA’s guarantee will support SBI’s growing portfolio of renewable energy in India and contribute to India’s climate goals,” said Tsutomu Yamamoto, MIGA Managing Director.

Yamamoto emphasised that MIGA-IBRD cooperation on the project is an example of One World Bank Group collaboration to achieve private capital mobilisation.

Stephanie von Friedeburg, Global Head of Citi’s Public Sector Group, said, “As our second collaboration with MIGA and SBI in the last two years, this initiative continues to support India’s ambitious rooftop solar program, demonstrating the power of public-private partnerships to deliver impactful clean energy solutions and contribute to global climate objectives.”

Building on Previous Collaboration

The transaction follows a similar rooftop solar refinancing collaboration in 2024 among Citi, MIGA and SBI. 

MIGA, a member of the World Bank Group, provides political risk insurance and credit enhancement instruments to mobilise private investment into developing economies.

In 2024, the World Bank Group consolidated its guarantee products under MIGA. The move is aimed at scaling up annual guarantee issuance to $20 billion by 2030, reinforcing its strategy to crowd in private capital for climate and development priorities.