USAID & DFC to Finance Renewable Energy in India

United States Agency for International Development (USAID) and US International Development Finance Corporation (DFC) have announced for a $41 million-loan guarantee program in order to finance the investment in the renewable energy solutions by Indian Small & Medium Enterprises (SMEs).


The USAID and DFC are jointly sponsoring the $41 million loan portfolio guarantee. This load amount will help to finance the investments by Indian SMEs for the renewable energy solutions and rooftop solar installations. These loans will enable the SMEs to access the reliable power and cut costs.

Significance of the move

Investments in the solar solutions, which will be secured by the credit guarantees, will help in improving the access to clean, steady and affordable energy. It will also help in furthering the progress towards clean energy transition and climate change mitigation in India.

What was the need of Funding?

In India, the commercial and industrial sectors pay a high fee for their electricity. This makes the rooftop solar a sustainable and cost-saving investment. On the other hand. The SMEs and residential consumers face the challenge of securing the finances which are required to install and use the rooftop panels. Thus, this finance from the USAID & DFC will help the SMEs to finance the investment for solutions by SMEs which accounts for 48 per cent of the total energy consumed in the industrial sector of India.

Rooftop solar power generation

The rooftop solar power generation helps in lower the monthly energy costs. It also drives the important social benefits such as job creation and economic growth. It also helps in reducing the carbon emissions and improves the air quality.’


USAID and DFC have partnered with New York-based Encourage Capital to tackle the problem. It is an environmentally focused investment firm. They have also collaborated with the two Indian non-banking financial companies called cKers Financial and woman-owned Electronica Finance Ltd (EFL).




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