India has recently secured a US$197.67 mn guarantee from the Multilateral Investment Guarantee Agency (MIGA), the guarantee arm of the World Bank Group, to support refinancing of a US$500 mn State Bank of India (SBI) loan for grid-connected rooftop solar. The five-year guarantee was provided to back Citibank's non-shareholder loan to the State Bank of India. The instrument is intended to de-risk commercial financing and strengthen investor confidence in rooftop deployments.

The refinanced loan supports a national initiative to deploy grid-connected rooftop solar photovoltaic systems for commercial and industrial consumers across India. The State Bank of India launched the rooftop programme in 2016 with financial and technical support from the World Bank to demonstrate commercial viability and broaden market participation. The scheme aimed to mobilise private capital and attract international commercial lenders.

An International Bank for Reconstruction and Development (IBRD) implementation report confirmed that 1,004 megawatt (MW) of capacity was installed under the programme, illustrating early success. MIGA cooperation with the IBRD and Citi is intended to expand SBI's renewable energy portfolio and contribute to India’s climate goals. Senior stakeholders characterised the transaction as an example of One World Bank Group collaboration to mobilise private capital.

The transaction follows a similar rooftop refinancing collaboration in 2024 among Citi, MIGA and the State Bank of India, reinforcing a pattern of public-private partnerships. In 2024 the World Bank Group consolidated its guarantee products under MIGA with a target to scale annual issuance to US$20 bn by 2030 to crowd in private capital for climate and development priorities. The guarantee is expected to support continued deployment of rooftop systems and further private sector participation.