India has set an ambitious renewable energy target of 175 GW by 2022, including 100GW of solar power. Of that, the government aims for 60 GW to be utility-scale solar, and the rest to be rooftop solar. Though India has made significant progress on the 60 GW utility-scale solar target, getting to the 40 GW rooftop solar target will be a significant undertaking. As of December 2016, installed capacity of rooftop solar was only ~1.25 GW, which means that ~6 GW would need to be installed every year to reach the 40 GW target by 2022. Filling this gap between the current installment and the 40 GW goal will require an estimated USD 39 billion (INR 3 trillion).

This paper—produced in collaboration between Climate Policy Initiative (CPI), Stockholm Environment Institute (SEI), and Indian Council for Research on International Economic Relations (ICRIER), and funded by the Swedish Energy Agency as part of its support for the New Climate Economy project—proposes the use of municipal bonds to support the scale-up of rooftop solar in India, and details how such bonds could be designed and implemented.

The full paper is available for download on the Climate Policy Initiative website.