NEW DELHI — In a boost to India’s green energy transition, the World Bank’s Board of Executive Directors has approved an $890 million financing package to accelerate the country’s national residential solar rooftop program.
The initiative is projected to bring clean energy to millions of households while generating an estimated 1.7 million job opportunities across the renewable energy manufacturing, installation, and services value chain.
Accelerating the Net-Zero Journey
India has set ambitious climate targets, committing to achieve net-zero emissions by 2070 and aiming to source 60 percent of its electricity mix from non-fossil-fuel-based resources by 2035.
While large-scale utility solar projects have seen rapid growth across the country, residential solar adoption has lagged. To bridge this gap, the Government of India launched the PM Surya Ghar: Muft Bijli Yojana program. This national initiative aims to:
- Incentivize solar rooftop installations for 10 million rural and urban households.
- Significantly reduce household electricity expenses.
- Stimulate local manufacturing of solar rooftop equipment.
“The World Bank has been supporting India’s solar rooftop sector for over a decade, mobilizing more than $2 billion to catalyze 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.”
Breakdown of the $890 Million Funding Package
The World Bank’s comprehensive financial support is structured to maximize reach and affordability:
| Funding Source | Amount | Type |
| International Bank for Reconstruction and Development (IBRD) | $820 Million | Loan |
| Clean Technology Fund | $60 Million | Concessional Loan |
| IBRD’s Livable Planet Fund | $10 Million | Grant |
In addition to the direct $890 million funding, the World Bank will mobilize an additional $4.2 billion in private financing via commercial loans to help households fund their rooftop installations.
Removing Barriers to Adoption
The capital injection aims to address systemic bottlenecks that have historically slowed down residential solar adoption, such as high upfront costs and complex logistics.
“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,” noted Moez Cherif, the program’s Task Team Leader. “Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills.”
