The World Bank has approved an $890 million financing package yesterday to accelerate India’s rooftop solar programme, aiming to bring clean energy to millions of homes while creating 1.7 million jobs across the renewable energy sector.
The Board of Executive Directors sanctioned the funding to support the Government of India’s PM Surya Ghar: Muft Bijli Yojana scheme, which targets solar rooftop installations for 10 million rural and urban households nationwide.
The comprehensive financing arrangement comprises an $820 million loan from the International Bank for Reconstruction and Development, a $60 million concessional loan from the Clean Technology Fund, and a $10 million grant from IBRD’s Livable Planet Fund.
Beyond direct financing, the World Bank will mobilise $4.2 billion in private commercial loans to enable households to install solar rooftops, significantly expanding the programme’s reach.
The initiative addresses a critical gap in India’s renewable energy landscape, where large-scale solar has expanded rapidly but residential adoption has remained limited.
The programme specifically aims to reduce household electricity costs whilst encouraging local manufacturing of solar rooftop equipment.
Through collateral-free financing, the scheme will remove financial barriers that have traditionally prevented residential consumers from adopting solar technology.
Distribution companies, banks and vendors will receive capacity-building support to deliver integrated service solutions, transforming the residential solar market.
The programme represents a significant step towards India’s ambitious climate targets, with households able to install solar power systems and substantially reduce their monthly electricity bills whilst contributing to the country’s clean energy transition
