New Delhi: The World Bank has approved $890 million in financing to support India’s ambitious rooftop 
solar programme, a move expected to expand access to clean energy for millions of households and create approximately 1.7 million jobs across the renewable energy sector.
The funding will support the PM Surya Ghar: Muft Bijli Yojana, the Government of India’s flagship initiative aimed at promoting rooftop solar installations in 10 million urban and rural households across the country. The programme seeks to reduce electricity costs for families while boosting domestic manufacturing and adoption of solar energy technologies.
India has committed to achieving net-zero carbon emissions by 2070 and increasing the share of non-fossil fuel-based energy sources to 60 per cent of its electricity mix by 2035. While utility-scale solar power has witnessed rapid growth, residential rooftop solar adoption has remained relatively limited.
According to the World Bank, the new financing will help bridge this gap by making rooftop solar systems more accessible and affordable for households.
“The World Bank has been supporting India’s rooftop solar sector for over a decade, helping expand installed capacity from 500 MW to more than 27 GW through investments exceeding $2 billion,” said Paul Procee, Acting Country Director for India at the World Bank.
“This new financing will help India scale up residential solar adoption while creating employment opportunities across manufacturing, installation and service sectors,” he added.
Financing Package
The approved package comprises:
- $820 million loan from the International Bank for Reconstruction and Development (IBRD)
- $60 million concessional loan from the Clean Technology Fund
- $10 million grant from the IBRD’s Livable Planet Fund
In addition, the World Bank will facilitate approximately $4.2 billion in private sector financing, enabling commercial lending institutions to provide loans for rooftop solar installations.
Reducing Costs, Expanding Access
Officials said the programme aims to remove financial barriers that often prevent households from investing in solar energy systems.
“The initiative will transform the residential solar market by strengthening the capacities of distribution companies, banks and vendors while providing integrated service solutions,” said Moez Cherif, Task Team Leader for the programme.
He noted that collateral-free financing options will allow more households to install rooftop solar systems and significantly reduce their monthly electricity bills.
The programme is expected to play a key role in advancing India’s clean energy transition, enhancing energy security, reducing carbon emissions and creating large-scale employment opportunities across the renewable energy value chain.
