ADB Approves $850 Million Loan to Accelerate Affordable Rooftop Solar Adoption for Households in India.
The Asian Development Bank (ADB) has approved an $850 million loan to support reforms that will speed up the rollout of the Government of India’s flagship rooftop solar program, boosting the resilience of Indian households through better access to affordable clean energy, mobilizing private sector investment, and strengthening the skills of grid personnel and rural entrepreneurs.
The financing for subprogram 2 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program supports the government’s flagship Pradhan Mantri Surya Ghar: Muft Bijli Yojana, which aims to install rooftop solar systems for 10 million low- and middle-income households, adding 30 gigawatts of residential solar capacity by fiscal year 2027.
People-Centered Energy Transition
“The program will help India expand rooftop solar at scale while making clean energy more affordable and accessible to millions of households,” said ADB Country Director for India Mio Oka. “It supports a people-centered energy transition by reducing exposure to energy price and supply shocks, strengthening distribution systems, creating green jobs, expanding opportunities for women, and building stronger domestic clean energy value chains.”
Scaling Up Foundations
Subprogram 2 builds on subprogram 1, approved in November 2025, which established the policy, institutional, digital, financing, and market foundations for large-scale rooftop solar deployment. The new financing will help scale rooftop solar adoption by improving incentives, financing, grid readiness, utility engagement, skills, and digital monitoring, while supporting domestic manufacturing, storage, recycling, and household use of clean energy.
Upfront costs will be reduced and adoption accelerated under the program through financial assistance for at least 3.5 million rooftop installations, digital application and monitoring systems, distribution company participation, and private sector engagement.
Capacity Building and Sustainability
The program includes targeted workforce and environmental safeguards:
- Training & Certification: Professional skill-building for at least 6,000 people—with a mandate that at least one-third are women.
- Rural & Local Models: Facilitating new model solar villages and innovative distributed solar projects while expanding opportunities for female entrepreneurs.
- Environmental Lifecycle Management: Strengthening vendor accountability and enforcing safe handling and recycling protocols for solar photovoltaic panels and battery waste.
ADB’s support is expected to contribute directly to India’s target of 30 gigawatts of cumulative rooftop solar capacity, reducing carbon dioxide equivalent emissions by 28.8 million tons while making clean power widely accessible.
