ADB approves $850 million loan to support India’s rooftop solar rollout
The Asian Development Bank (ADB) has approved an $850 million loan to support reforms aimed at accelerating residential rooftop solar deployment in India under the Pradhan Mantri Surya Ghar: Muft Bijli Yojana.
The financing covers subprogram 2 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program and will support measures to improve financial incentives, access to financing, grid readiness, distribution company participation, workforce skills and digital monitoring.
The government scheme aims to install rooftop solar systems for 10 million low- and middle-income households and add 30 GW of residential solar capacity by fiscal year 2027.
Solar rollout
The financing builds on subprogram 1, which ADB approved in November 2025 to establish the policy, institutional, digital, financing and market foundations required for large-scale rooftop solar deployment.
Under subprogram 2, financial assistance will support at least 3.5 million rooftop solar installations, reducing upfront costs and accelerating household adoption. The program will also strengthen digital application and monitoring systems, increase distribution company participation and encourage private sector involvement.
The financing will support domestic manufacturing, energy storage and recycling, alongside measures to increase household use of clean energy.
ADB expects the program to contribute to India’s target of 30 GW of cumulative rooftop solar capacity and reduce carbon dioxide equivalent emissions by 28.8 million tons.
Skills
The program will support training and certification for at least 6,000 people, with women accounting for at least one-third of those trained.
It will also facilitate new model solar villages and innovative distributed solar projects, strengthen vendor accountability and promote greater participation by women in distributed renewable energy.
Measures are also planned to improve the safe handling and recycling of solar photovoltaic panels and battery waste.
ADB Country Director for India Mio Oka said: “The program will help India expand rooftop solar at scale while making clean energy more affordable and accessible to millions of households. It supports a people-centered energy transition by reducing exposure to energy price and supply shocks, strengthening distribution systems, creating green jobs, expanding opportunities for women, and building stronger domestic clean energy value chains.”
The featured photograph is for representation only.
