The Solar Investment Trusts (SEITs) are innovative investment vehicles designed to help small-scale rooftop solar developers in India raise equity capital at lower financing costs. Structured as Infrastructure Investment Trusts (InvITs), they pool multiple solar projects to reduce risk through diversification and increase market participation by opening investment to various investor classes with different risk appetites. SEITs address key market barriers by enhancing liquidity through mandatory listing, ensuring transparency via SEBI regulations, and enabling capital recycling for developers. This instrument could potentially mobilize over $1 billion for India’s rooftop solar sector within five years while reducing equity costs by 350-400 basis points, helping India advance toward its ambitious 40 GW rooftop solar capacity target. By lowering the overall cost of capital, SEITs help reduce the levelized cost of electricity, making rooftop solar more competitive and accelerating adoption across India.

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