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Indian Government and Its Companies Create a Giant Equity Fund to Keep The Solar Momentum Going

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$2 billion Equity Fund for RE in India

We at Greenworldinvestor had recently highlighted the problems being faced by the Indian solar industry in getting equity to fund solar projects. With the Indian capacity at 8 GW and the target at 100 GW, massive amounts of solar capacity needs to be added. Solar being a capital intensive industry, it is estimated that about $20 billion would be required in equity funding alone to keep the solar energy capacity growth going. Many of the small solar companies were finding it hard to get equity funding. Debt funding has been much more easier with a large number of banks, bilateral and multilateral institutions coming up with billions of dollars in credit lines to keep the renewable energy growth going in India.


Also read How should I Finance my Rooftop Solar PV System/ Project in India.

To solve this problem, Indian government and three of its state-run companies are setting up a US $2 billion equity fund to help renewable energy companies meet the country’s ambitious target. The National Investment and Infrastructure Fund, part of the finance ministry, will give US$600 million for the first provision of the equity fund. The fund will get $1 billion next year and the other billion the next year.  Both private and public companies can tap this equity fund to get financing for their renewable energy projects. The Indian government hopes that the Clean Energy Equity Fund (CEEF) will attract pension and insurance funds from Canada and Europe.

“As we expand our clean energy capacity, there may be a shortage of equity next year. Private equity is seen as risky in India, but if the government itself creates a fund, that gives a lot of confidence.”


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

One Response so far | Have Your Say!

  1. Hiranya Kamdar

    I am associated with one NGO. They have open plot of land in Mumbai Suburb. The Society wishes to establish a Solar Energy plant for their captive use of school as well residences of villagers.

    If you can help put it up, please contact me on my mail or on my cell: 98200 31899.

    Thanks & Regards
    Hiranya Kamdar