ADB Approves US$850 Million to Accelerate India’s Rooftop Solar Expansion

The Asian Development Bank (ADB) has approved an US$850 million loan to support the Government of India’s PM Surya Ghar: Muft Bijli Yojana, a flagship initiative aimed at expanding rooftop solar adoption across the country. The funding will help accelerate the installation of rooftop solar systems in millions of households, making clean and affordable electricity more accessible while advancing India’s renewable energy ambitions.

The programme seeks to install rooftop solar systems in at least 3.5 million additional homes, enabling families to lower electricity costs, generate their own clean power, and reduce reliance on conventional energy sources. The initiative also supports India's broader goal of increasing renewable energy capacity and reducing greenhouse gas emissions.

Beyond financing rooftop installations, the ADB loan will strengthen the overall implementation of the scheme by improving digital infrastructure, enhancing monitoring systems, and building the capacity of electricity distribution companies (DISCOMs). These measures are expected to streamline project execution, improve service delivery, and encourage greater participation from private sector stakeholders.

The investment is also expected to generate significant socio-economic benefits, including the creation of green jobs in manufacturing, installation, maintenance, and related services. By expanding access to distributed renewable energy, the programme will strengthen energy security, support sustainable economic growth, and contribute to India's long-term net-zero and clean energy transition objectives.

The partnership between ADB and the Government of India reinforces international support for the country's clean energy agenda and highlights the growing role of multilateral financing in scaling renewable energy infrastructure. The initiative marks another important step towards building a more resilient, low-carbon, and sustainable energy future for India.

$850 million from ADB directly targets the financing gap that's slowed distributed solar deployment, and it changes the credit-availability landscape for residential and C&I solar. Our energy-transition and responsible-investment teams help clients evaluate rooftop-solar opportunities and financing structures.