World Bank Backs India's Rooftop Solar Push with $890 Million

He said the latest financing will further expand residential solar while generating employment throughout the renewable energy supply chain.

The World Bank has approved a major financing package to help India expand rooftop solar installations under the PM Surya Ghar: Muft Bijli Yojana, supporting the country's clean energy goals while creating an estimated 1.7 million jobs across manufacturing, installation and renewable energy services. India has pledged to achieve net-zero emissions by 2070 and increase the share of non-fossil-fuel energy to 60 percent of its electricity mix by 2035. Although utility-scale solar power has grown rapidly in recent years, residential rooftop solar adoption has remained relatively low. The government launched the PM Surya Ghar programme to encourage rooftop solar installations in 10 million rural and urban households, helping families lower electricity bills while boosting domestic production of solar equipment.

World Bank Mobilises Public and Private Investment

The new 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's Livable Planet Fund. Alongside this support, the World Bank will mobilise around $4.2 billion in private financing through commercial loans, making it easier for households to install rooftop solar systems without facing major financial obstacles.

World Bank Acting Country Director for India Paul Procee said the institution has supported India's rooftop solar sector for more than a decade, helping installed capacity grow from 500 megawatts (MW) to more than 27 gigawatts (GW) through investments exceeding $2 billion. He said the latest financing will further expand residential solar while generating employment throughout the renewable energy supply chain.

Programme Aims to Lower Bills and Create Jobs

According to the World Bank, the programme will strengthen the residential solar market by improving the capacity of electricity distribution companies, financial institutions and equipment vendors to provide integrated services for homeowners. Task Team Leader Moez Cherif said the initiative will make rooftop solar more accessible by offering collateral-free financing, allowing more households to install solar panels and significantly reduce their monthly electricity expenses.

Beyond lowering energy costs for families, the programme is expected to create employment opportunities across manufacturing, installation, maintenance and related renewable energy services, supporting India's transition to cleaner and more sustainable sources of electricity while strengthening its domestic solar industry.