In Short : The Asian Development Bank’s approval of a $650 million loan is set to significantly boost rooftop solar adoption across India. The funding will support expanded financing for households, MSMEs, and commercial users, making solar installations more accessible and affordable. By accelerating clean energy deployment, the initiative will help reduce carbon emissions, strengthen energy security, and advance India’s renewable energy goals.
In Detail : MANILA, PHILIPPINES — The Asian Development Bank (ADB) has approved a $650 million policy-based loan to help the Government of India accelerate rooftop solar adoption and expand access to clean, affordable energy for 10 million households by 2027.
The financing under Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program will support the government’s flagship initiative—Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY)—which aims to make rooftop solar systems widely accessible nationwide.
“The program is accelerating India’s clean energy transition by removing long-standing barriers to rooftop solar adoption, including financing constraints and regulatory gaps,” said ADB Country Director for India Mio Oka. “It is making rooftop solar affordable and accessible for millions of households while creating green jobs, empowering women, and strengthening the financial health of the power sector.”
PMSGMBY will provide financial assistance to residential consumers for installing rooftop solar systems of up to 3 kilowatts (kW), with a 60% subsidy for systems up to 2 kW and a 40% subsidy for additional capacity between 2 kW and 3 kW.
Key reform areas under the program include developing uniform operational guidelines and quality standards for residential rooftop solar systems and facilitating mass adoption among low- and middle-income households through collateral-free, low-interest loans. Aligned with India’s Nationally Determined Contribution targets, the program will enhance the skills and capacity of at least 5,000 personnel, including 1,500 women. It will also support the development of utility-led aggregation models and model solar villages, and foster a robust vendor ecosystem.
ADB’s intervention is expected to significantly contribute to the nationwide objective of installing 30 gigawatts of rooftop solar capacity, achieving annual reductions of 28.8 million tons of CO2 emissions, and delivering affordable solar energy to millions of households. It will also catalyze private sector investment to create opportunities for manufacturers, vendors, and service providers across the renewable energy value chain.
ADB’s financing for the program includes $3 million in technical assistance to help implement reforms, build institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
