New Delhi: The Asian Development Bank (ADB) has sanctioned an $850 million loan to support the Government of India’s flagship PM Surya Ghar: Muft Bijli Yojana, boosting the country’s rooftop solar ambitions. The financing forms part of the Manila-based lender’s broader $1.85 billion commitment towards India’s clean energy transition and urban infrastructure development.
This funding is expected to boost the installation of rooftop solar systems across millions of households, helping India reduce dependence on conventional energy sources while improving energy access and lowering electricity bills.
Accelerating rooftop solar adoption
The PM Surya Ghar Yojana enabled domestic households to generate their own electricity and receive up to 300 units of free electricity every month through solar generation, with an aim to reach one crore households.
The ADB’s loan will be used to strengthen institutional capacity, support policy reforms and facilitate investments required to expand rooftop solar infrastructure. The funds will also help mobilize private sector participation, creating a sustainable financing ecosystem for residential solar adoption.
Part of India’s clean energy roadmap
The latest loan aligns with India’s broader objective of increasing the share of renewable energy in its electricity mix, which is about 30% of the total electricity generated at present. Rooftop solar has emerged as a critical component of this strategy, as it allows decentralised power generation while reducing pressure on the national grid.
“The program is accelerating India’s clean energy transition by removing long-standing barriers to rooftop solar adoption, including financing constraints and regulatory gaps,” ADB Country Director for India Mio Oka said in a press release.
“It is making rooftop solar affordable and accessible for millions of households while creating green jobs, empowering women, and strengthening the financial health of the power sector.” she added.
