This paper builds on CPI’s analysis of a third-party financing model to encourage rapid deployment of roof-top solar in India. That study concluded that the inadequate availability of debt financing for project developers was a fundamental barrier that could well prevent India from reaching its 40GW goal by 2022.
This paper considers a radical new approach that could be rolled out at the municipal level and details how such bonds could be designed and implemented. The study considers the characteristics of municipalities that could allow them to act as financial aggregators and assesses promising applications of municipal bonds in Surat and New Delhi. The paper concludes by providing a detailed roadmap for municipalities to deploy the proposed model.