US-India Clean Energy Finance
CPI manages the US-India Clean Energy Finance (USICEF) initiative: India’s first project preparation and pipeline development facility to support promising distributed solar projects develop into viable investment opportunities and drive long-term debt financing.
USICEF is a keystone of the commitment made between the Indian and US governments to mobilize finance for Indian distributed clean energy projects.
Since 2017, USICEF has identified over 30 early-stage businesses across 20 states in India and has committed a total of $5.1 million in grant-based funding to these projects.
The proposed Credit Guarantee Mechanism addresses the most important barriers to scaling rooftop solar in the MSME sector; and could be crucial if India wants to achieve its rooftop solar target by 2022.
A CAPEX model with a commercial loan for the off-taker is a potential solution for these categories of customers. In this report, we assess the viability of the CAPEX loan model with a focus on the MSME sector, identify barriers to uptake, and recommended policy solutions to these barriers.