New Delhi, 10 July: The World Bank has approved an $890 million financing package to support the expansion of rooftop solar installations under PM Surya Ghar: Muft Bijli Yojana, India’s flagship residential solar programme. The funding aims to accelerate clean energy adoption, strengthen domestic solar manufacturing, and make rooftop solar systems more affordable for millions of households.
The financing package includes an $820 million loan from the International Bank for Reconstruction and Development (IBRD), a $60 million concessional loan from the Clean Technology Fund, and a $10 million grant from the IBRD Livable Planet Fund.
In addition to multilateral financing, the programme is expected to attract nearly $4.2 billion in private investment, primarily through commercial lending for residential rooftop solar systems. Improved access to affordable and collateral-free financing is expected to significantly boost rooftop solar adoption across the country.
Launched by the Government of India, the PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar systems on 10 million households, making it one of the world’s largest residential solar initiatives. While India has made remarkable progress in utility-scale renewable energy, residential rooftop solar has witnessed comparatively slower growth. The latest funding seeks to bridge this gap by addressing financing challenges and expanding market participation.
The programme will also strengthen the rooftop solar ecosystem by enhancing the capacity of electricity distribution companies (DISCOMs), financial institutions, and solar solution providers, enabling smoother implementation and improved consumer services.
According to the World Bank, the initiative could generate nearly 1.7 million jobs across solar manufacturing, installation, operations, maintenance, and related services, providing a major boost to India’s green economy.
Highlighting the long-standing partnership with India, Paul Proccee, Acting Country Director for India at the World Bank, said the institution has supported the country’s rooftop solar sector for more than a decade, helping expand installed capacity from 500 MW to over 27 GW through financing exceeding $2 billion. He noted that the new funding would further accelerate residential solar deployment while creating employment opportunities across the value chain.
Moez Cherif, Task Team Leader for the programme, said the initiative will transform India’s residential solar market by removing financial barriers and strengthening the capabilities of banks, DISCOMs, and vendors. He added that collateral-free financing will enable households to install rooftop solar systems and substantially reduce their monthly electricity expenses.
The latest financing aligns with the World Bank’s broader development strategy for India, focusing on private investment mobilisation, clean energy infrastructure, job creation, and sustainable economic growth, while supporting India’s ambitious renewable energy and climate goals.
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