The Asian Development Bank (ADB) has approved a $650 million loan to support the Government of India in scaling up rooftop solar adoption and expanding access to clean, affordable energy for 10 million households by 2027.
The financing, provided under Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, backs the government’s flagship initiative—Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY)—designed to make rooftop solar systems widely accessible across the country.
ADB’s Country Director for India, Mio Oka, stated thatthe initiative is accelerating India’s clean energy transition by removing long-standing barriers to rooftop solar adoption, including financing constraints and regulatory gaps. The programme is set to make rooftop solar both affordable and accessible for millions of households, while also creating green jobs, empowering women, and strengthening power sector finances.
Under PMSGMBY, residential consumers will receive financial assistance for installing rooftop solar systems of up to 3 kilowatts (kW). The scheme provides a 60% subsidy for systems up to 2 kW and a 40% subsidy for the additional capacity between 2 kW and 3 kW.
Key reforms and capacity building
The ADB-backed programme will advance several critical reforms, including
- Establishing uniform operational guidelines and quality standards for residential rooftop solar
- Promoting collateral-free, low-interest loans to encourage adoption among low- and middle-income households
- Training and upskilling at least 5,000 personnel, including 1,500 women, aligned with India’s climate commitments
- Supporting utility-led aggregation models, model solar villages, and strengthening a robust vendor ecosystem
Impact on India’s renewable energy targets
ADB’s intervention is expected to significantly contribute to India’s national goal of installing 30 gigawatts (GW) of rooftop solar capacity. This expansion could translate into 28.8 million tonnes of CO₂ emissions reduced annually, while delivering reliable, affordable energy to millions of families.
The initiative is also poised to catalyse private investment and create new opportunities for manufacturers, vendors, and service providers across the renewable energy value chain.
ADB’s support includes $3 million in technical assistance to help implement reforms, enhance institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.
Founded in 1966, ADB is among the leading multilateral development banks advancing inclusive, resilient, and sustainable growth across Asia and the Pacific.
