New Delhi: The World Bank has approved an $890 million financing package to support India’s PM Surya Ghar: Muft Bijli Yojana, aimed at accelerating rooftop solar installations for 10 million households across the country. The funding is expected to boost clean energy adoption, generate 1.7 million jobs, and mobilise $4.2 billion in private investment for residential solar projects.
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. The World Bank said the programme would also leverage commercial lending to expand household access to rooftop solar systems.
The initiative supports India’s commitment to achieve net-zero emissions by 2070 and increase the share of non-fossil fuel-based electricity generation to 60 per cent by 2035. While utility-scale solar has witnessed rapid growth, the residential rooftop segment remains largely untapped, making it a key focus of the country’s clean energy transition.
According to the World Bank, the programme is expected to create nearly 1.7 million jobs across manufacturing, installation, maintenance, financing, and other renewable energy-related services. It is also expected to strengthen domestic manufacturing and encourage innovation across the clean energy sector.
The World Bank has supported India’s rooftop solar sector for more than a decade, helping expand installed rooftop solar capacity from about 500 MW to over 27 GW through investments exceeding $2 billion. The latest funding is intended to build on these gains by expanding affordable solar energy access nationwide.
The programme will also enhance the capacity of power distribution companies, banks, and solar vendors to deliver integrated services. Collateral-free financing will enable more households to install rooftop solar systems, lowering electricity bills while contributing to India’s long-term energy security and climate objectives. (Agencies)
