The Asian Development Bank (ADB) has approved a $650 million policy-based loan to support the Government of India in rapidly expanding rooftop solar adoption and providing clean, affordable electricity to 10 million households by 2027. The financing, part of Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, will advance the national initiative Pradhan Mantri Surya Ghar: Muft Bijli Yojana, designed to make rooftop solar systems accessible across the country.
Mio Oka, ADB Country Director for India, said the program is accelerating the nation’s clean-energy transition by addressing long-standing challenges such as financing barriers and regulatory limitations. She highlighted that it is enabling millions of families to adopt rooftop solar while supporting green job creation, promoting women’s participation, and improving the financial health of the power sector.
Under the initiative, residential consumers will receive financial assistance to install systems of up to 3 kilowatts, including a 60 percent subsidy for systems up to 2 kW and a 40 percent subsidy for additional capacity between 2 and 3 kW. The program includes major reforms such as standardizing operational guidelines and quality benchmarks for rooftop solar systems, enabling mass adoption among low- and middle-income households through collateral-free low-interest loans, and strengthening workforce capabilities by training at least 5,000 individuals, including 1,500 women.
Aligned with India’s Nationally Determined Contribution goals, the program also supports utility-led aggregation models, development of model solar villages, and growth of a strong vendor network. ADB’s support is projected to play a pivotal role in achieving the national target of 30 gigawatts of rooftop solar capacity, reducing 28.8 million tons of CO₂ emissions annually, and spurring private-sector investment throughout the renewable energy supply chain.
The loan package includes $3 million in technical assistance for implementing reforms, enhancing institutional capacity, and expanding gender-inclusive participation in the solar sector.
