The United States is sponsoring a loan portfolio guarantee programme worth $41 million to help finance investments by Indian Small and Medium Enterprises (SMEs) in renewable energy solutions, including rooftop solar installations.

The programme is being implemented by the US Agency for International Development (USAID) and the US International Development Finance Corporation (DFC) through joint sponsorship, per a media release issued by the US Embassy on Thursday.

Support businesses

“USAID/India is pleased to promote power diversification and support local businesses in India. Investments in solar solutions, secured by these credit guarantees, will improve access to clean, steady, and affordable energy as well as further progress towards India’s clean energy transition and climate change mitigation,” Karen Klimowski, Acting Mission Director, USAID/India, said at the signing of the guarantee agreement.

USAID and DFC partnered with New York-based Encourage Capital, an environmentally focused investment firm, and two Indian non-banking financial companies, cKers Financial and woman-owned Electronica Finance Limited (EFL), to address this challenge.

“Encourage Capital has invested $15 million in EFL, which will use the USAID-DFC loan portfolio guarantee to stimulate the rooftop solar market — representing a $9 billion market opportunity—for SMEs,” the release stated. Lower monthly energy costs drive important social benefits, including job creation and economic growth, while reducing carbon emissions and improving air quality, the release added.

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