India’s rooftop solar push has received a major financing boost after the World Bank Group’s guarantee arm issued a $197.67 million guarantee to support refinancing of a $500 million clean energy loan to the State Bank of India (SBI).
The five-year guarantee from the Multilateral Investment Guarantee Agency (MIGA) backs a non-shareholder loan from Citibank N.A. to SBI. The financing is aimed at scaling grid-connected rooftop solar photovoltaic systems for commercial and industrial customers across India.
Refinancing supports large-scale rooftop solar deployment
The refinancing helps transition an earlier loan from the World Bank into commercial lender balance sheets, enabling fresh capital to flow into India’s clean energy programs. The initiative supports a nationwide rollout of grid-connected rooftop solar photovoltaic (GRPV) systems that reduce reliance on carbon-intensive thermal power.
According to MIGA Managing Director Tsutomu Yamamoto, the guarantee strengthens SBI’s renewable energy portfolio and contributes to India’s climate targets. He added that collaboration between MIGA and the World Bank demonstrates how public and private capital can work together to accelerate clean energy adoption.
India’s energy transition needs massive investment
India has set ambitious climate goals and estimates it will require between $160 billion and $300 billion annually to reach net-zero emissions by 2070. As part of its green financing mandate, SBI must ensure at least 7.5 percent of its domestic lending qualifies as green funding.
SBI launched its rooftop solar financing program in 2016 with World Bank support and technical assistance. Since then, the program has helped demonstrate the commercial viability of rooftop solar for commercial and industrial users while attracting private and international lenders.
The latest implementation report confirms that the initiative has delivered 1,004 MW of rooftop solar installations so far.
Citi and SBI expand public-private climate financing partnership
Citibank acted as sole lender, mandated lead arranger, facility agent and MIGA coordinator for the refinancing. The deal builds on a similar collaboration between Citi, MIGA and SBI in 2024.
Stephanie von Friedeburg, Global Head of Citi’s Public Sector Group, said the transaction demonstrates the role of public-private partnerships in accelerating clean energy and supporting India’s transition to a greener economy.
SBI Managing Director Rana Ashutosh Kumar Singh described the refinancing as a pioneering transaction that will help reduce borrowing costs and diversify funding sources while supporting India’s net-zero ambitions.
Guarantee platform aims to mobilize private capital
The guarantee also frees up lending capacity for the Indian government by transferring the loan exposure to commercial lenders. MIGA provides political risk insurance and credit enhancement to attract private investment into developing economies. In 2024, the World Bank Group consolidated its guarantee products under MIGA, targeting annual guarantee issuance of $20 billion by 2030. The latest rooftop solar refinancing marks another step toward mobilizing private capital for large-scale renewable energy deployment in India.
