The Asian Development Bank (ADB) has approved an $850 million loan to support reforms and accelerate the rollout of India’s rooftop solar program. The program aims to enhance household resilience by improving access to affordable clean energy, mobilizing private sector investment, and strengthening the skills of grid personnel and rural entrepreneurs.
ADB’s latest funding builds on its previous financing program, approved in December 2025, which included a $650 million policy-based loan to accelerate rooftop solar adoption and expand energy access for 10 million households by 2027. The previous round of financing for the program also includes $3 million in technical assistance to help implement reforms, build institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.
The financing is for Subprogram 2 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program. It also supports the government’s Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY), which aims to install rooftop solar systems for 10 million low- and middle-income households, adding 30 GW of residential solar capacity by FY2027.
Additionally, the PM Surya Ghar scheme has also secured international financing from the World Bank, an $890 million financing package to support the expansion of rooftop solar installations across India. The financing package comprises 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. The rooftop program has seen a noticeable acceleration over the past 18 months, with states like UP coming to the forefront with record additions.
ADB’s Subprogram 1 Supported PMSGMBY Rollout
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, energy storage, recycling, and household adoption of clean energy.
ADB’s support is expected to contribute to India’s target of 30 GW of cumulative rooftop solar capacity, reduce carbon dioxide equivalent emissions by 28.8 million tonnes, and expand access to affordable solar energy. The funding was extended under Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, which supports PMSGMBY and aims to make rooftop solar systems widely accessible across India.
ADB’s Funding Aims to Reduce Upfront Costs, Boost Adoption
Under the program, upfront costs will be reduced and adoption accelerated through financial assistance for at least 3.5 million rooftop installations, digital application and monitoring systems, distribution company participation, and greater private sector engagement.
“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.”
