0
By clicking the button, I accept the Terms of Use of the service and its Privacy Policy, as well as consent to the processing of personal data.
Don’t have an account? Signup
Powered by :
The World Bank has approved an $890 million financing package to support the expansion of rooftop solar installations across India. The funding will support the implementation of the PM Surya Ghar: Muft Bijli Yojana, the Government of India’s flagship residential rooftop solar programme. The initiative is expected to increase household access to clean electricity, stimulate domestic solar manufacturing and services, and improve the availability of affordable financing for residential consumers.
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.
Alongside the multilateral financing, the programme is expected to mobilise nearly $4.2 billion in private capital, primarily through commercial lending for rooftop solar systems. The World Bank said improving access to affordable finance, including collateral-free loans, will be critical to increasing residential solar adoption across the country.
India’s PM Surya Ghar: Muft Bijli Yojana targets rooftop solar installations on 10 million households, making it one of the world’s largest residential solar programmes.
While the country has rapidly expanded utility-scale renewable energy capacity over the past decade, rooftop solar deployment in the residential segment has grown at a comparatively slower pace. The new financing is intended to address this gap by reducing financing constraints and strengthening market participation.
Apart from supporting household financing, the initiative is expected to help strengthen the broader rooftop solar ecosystem by building the capacity of financial institutions, electricity distribution companies (DISCOMs) and solar solution providers.
The World Bank estimates that the programme could support approximately 1.7 million jobs across manufacturing, installation, operations and maintenance, and other services linked to the rooftop solar industry.
“The World Bank has been supporting India’s solar rooftop sector for over a decade, mobilising more than $2 billion to catalyse market growth from 500 MW to over 27 GW of installed capacity,” said Paul Proccee, World Bank Acting Country Director for India. “This new financing will help India scale up residential solar, while creating job opportunities across the supply chain and installation ecosystem.”
“The program will transform the residential solar market by removing financial barriers and building the capacity of distribution companies, banks, and vendors to deliver integrated service solutions,” said Moez Cherif, Task Team Leader of the program. “Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills.”
The latest financing aligns with the World Bank Group’s broader Country Partnership Framework for India, which places private capital mobilisation, job creation and clean energy infrastructure at the centre of its development strategy. 
We are India’s leading B2B media house, reporting full-time on solar energy, wind, battery storage, solar inverters, and electric vehicle (EV)
Quick Links
© 2025 Saur Energy. All Rights Reserved.

source