ADB Approves $650M Loan To India To Accelerate Rooftop Solar And Provide Clean Energy To 10 Million Households By 2027

The Asian Development Bank (ADB) has approved a $650 million policy-based loan to support the Government of India in accelerating 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, will back India’s flagship initiative, Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY), which seeks to make rooftop solar systems widely accessible across the country.

Mio Oka, ADB Country Director for India, stated that the program is helping to accelerate India’s clean energy transition by addressing long-standing barriers to rooftop solar adoption, such as financing constraints and regulatory gaps. The initiative aims to make rooftop solar affordable for millions of households, while creating green jobs, empowering women, and improving the financial health of the power sector.

Under PMSGMBY, residential consumers will receive financial assistance to install rooftop solar systems of up to three 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. The program focuses on key reform areas, including 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, while supporting the development of utility-led aggregation models, model solar villages, and a robust vendor ecosystem.

ADB’s support is expected to contribute significantly to India’s nationwide target 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. The program is also anticipated to catalyze private sector investment, creating opportunities for manufacturers, vendors, and service providers across the renewable energy value chain. The financing package includes $3 million in technical assistance to help implement reforms, build institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.

ADB, founded in 1966 and owned by 69 members—including 50 from Asia and the Pacific—is a leading multilateral development bank that supports inclusive, resilient, and sustainable growth across the region. The bank works with its members and partners to address complex challenges through innovative financial tools and strategic partnerships, aiming to transform lives, build quality infrastructure, and safeguard the planet.