The Asian Development Bank (ADB) has approved an $850 million loan to support the Government of India’s efforts to expand affordable rooftop solar systems for households under the Pradhan Mantri Surya Ghar: Muft Bijli Yojana. The financing is aimed at accelerating the adoption of residential solar energy, improving energy access, and strengthening the country’s clean energy transition through policy reforms, private sector participation, and workforce development.
The funding has been approved for subprogram 2 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program. It will support the government’s flagship initiative, which targets the installation of rooftop solar systems on 10 million low- and middle-income households across India. The program is expected to add 30 GW of residential rooftop solar capacity by the end of fiscal year 2027.
According to ADB, the new financing will help make rooftop solar more affordable and accessible while increasing the resilience of households against rising electricity costs and supply disruptions. It will also encourage private sector investment, strengthen distribution companies, improve grid readiness, and enhance digital monitoring systems to support large-scale deployment.
ADB Country Director for India Mio Oka said the program would help India expand rooftop solar at scale while making clean energy affordable for millions of households. She added that the initiative supports a people-centered energy transition by reducing exposure to energy price and supply shocks, strengthening electricity distribution systems, creating green jobs, expanding opportunities for women, and developing stronger domestic clean energy supply chains.
Subprogram 2 builds on the achievements of subprogram 1, which was approved in November 2025. The earlier phase established the policy, institutional, financing, digital, and market frameworks needed for large-scale rooftop solar deployment. The latest funding will focus on expanding adoption by improving financial incentives, increasing utility participation, strengthening financing mechanisms, and supporting domestic manufacturing, energy storage, and recycling.
The program is expected to reduce the upfront cost of rooftop solar installations through financial assistance for at least 3.5 million household systems. It will also strengthen digital application and monitoring platforms while encouraging greater involvement of private companies and electricity distribution utilities.
In addition, the initiative includes a strong focus on skill development. At least 6,000 people will receive training and certification under the program, with a minimum of one-third of the trainees being women. The funding will also support the development of model solar villages, promote innovative distributed solar projects, improve vendor accountability, encourage greater participation of women in the distributed renewable energy sector, and strengthen the safe handling and recycling of solar photovoltaic panels and battery waste.
ADB expects the program to contribute significantly toward India’s target of achieving 30 GW of cumulative rooftop solar capacity while reducing carbon dioxide equivalent emissions by 28.8 million tons and expanding access to affordable clean energy for millions of households.
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