ADB lends $ 50m to Enterprise Sri Lanka rooftop solar project

The Enterprise Sri Lanka project which was launched by the Ministry of Finance and Mass media to inspire, assist and create a minimum of 100,000 new entrepreneurs has received Rs 8 billion ($ 50 Million) from the Asian Development Bank (ADB) for its rooftop solar power generation project.

The loan agreement in this regard was signed by Dr. R H S Samaratunga, Secretary, Ministry of Finance and Mass Media and Sri Widowati, Country Director of ADB Sri Lanka Resident Mission today at the Ministry of Finance and Mass Media.

The main objective of this project is to support government’s ‘Battle for Solar Power Programme’ to achieve the target of 200 MW by 2020 and 1000 MW by 2025 through solar power generation. Clean and sustainable power generation will be enhanced through the proposed project by increasing debt facilities and funding for the rooftop solar power generation, developing solar rooftop market infrastructure and bankable subproject pipeline.  It is expected to add 50 MW to the national grid under this project.

The Enterprise Sri Lanka subsidized loan scheme has introduced a Donor funded refinance loan scheme to make provisions for rooftop Solar Power generation project with the aegis of the ADB. The households and the entrepreneurs will be provided maximum credit facilities up to Rs 7.5 million on the lending rate of 8% per annum.

The Department of Development Finance of the Ministry of Finance and Mass Media which is the Implementing Agency of the project, will coordinate with the selected banks and financial institutions to provide credit facilities to the customers to purchase Rooftop solar panels from reliable suppliers who have registered under the Sustainable Energy Authority.

The Ceylon Electricity Board (CEB) and Lanka Electricity Company Ltd (LECO) will support the project implementation by providing technical recommendations to the Financial Institutions regarding technical proposals of the applicants (customers) and reviewing and approving applications for connection of solar rooftop systems to the distribution network. In addition, customers will be benefited financially through one of the system among net metering, net accounting or net plus as a result of connecting solar electricity generated by this project to the national grid.

The total investment cost of this project is $ 59.8 million of which $ 50 million will be provided by ADB. Equity contribution by customers for the subprojects will be $ 9.8 million.