Solving India’s Renewable Financing Challenge: Which Policies can be Most Effective?


Climate Policy Initiative
Gireesh Shrimali
Shobhit Goel
Sandhya Srinivasan
David Nelson
1 March 2014

This paper provides a framework for comparing the existing federal policies for onshore wind and solar photovoltaic (PV) technologies in India with a proposed class of debt-related federal policies, using project-level cash-flow models. Three debt-related subsidies were considered: extended-tenor debt, reduced cost debt, and interest subsidy. According to the report, reduced cost, extended-tenor debt is more cost-effective than the primary existing policies at current support levels.