The Asian Development Bank (ADB) approved a $650 million loan to help India install rooftop solar systems in 10 million households by 2027, pushing the country’s clean energy transition forward, an ADB statement said. The funding will back the government’s flagship Pradhan Mantri Surya Ghar: Muft Bijli Yojana program, which aims to make rooftop solar widely accessible by tackling financing hurdles and regulatory gaps that have slowed adoption. The initiative offers subsidies covering 60 percent of costs for systems up to 2 kilowatts and 40 percent for additional capacity between 2 and 3 kilowatts.
The program targets long-standing barriers that have kept rooftop solar out of reach for millions of households. It will roll out uniform guidelines and quality standards for residential solar systems while offering collateral-free, low-interest loans to help low- and middle-income families make the switch. ADB Country Director for India Mio Oka said the program is making rooftop solar affordable and accessible while creating green jobs, empowering women, and strengthening the power sector’s financial health.
Beyond installation targets, the initiative will train at least 5,000 people—including 1,500 women—to build capacity across the solar sector. It will also support utility-led aggregation models, develop model solar villages, and foster a strong vendor ecosystem to sustain growth. Aligned with India’s climate commitments, the program is expected to contribute significantly to the national goal of installing 30 gigawatts of rooftop solar capacity.
ADB estimates the program will cut CO2 emissions by 28.8 million tons annually while delivering affordable solar energy to millions of homes. The financing is also expected to draw in private sector investment, creating opportunities for manufacturers, vendors, and service providers across the renewable energy supply chain. ADB is adding $3 million in technical assistance to help implement reforms, build institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.
The bank, founded in 1966 and owned by 69 members—50 from the Asia-Pacific region—has positioned itself as a key player in financing clean energy transitions across the continent. The loan underscores ADB’s broader push to support inclusive, resilient, and sustainable growth through innovative financial tools and strategic partnerships.
