ADB Approves $850 Million for India's Rooftop Solar Expansion

ADB expects the programme to make a significant contribution to India's renewable energy ambitions by helping the country reach its 30-gigawatt rooftop solar capacity target.

The Asian Development Bank (ADB) has approved an $850 million loan to help India accelerate the rollout of rooftop solar systems under the Pradhan Mantri Surya Ghar: Muft Bijli Yojana, strengthening access to affordable clean energy while creating green jobs, attracting private investment and improving the country's energy resilience.

The funding will support the second phase of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, helping millions of households install rooftop solar panels and contributing to India's clean energy transition.

Expanding rooftop solar across India

The government's flagship programme targets the installation of rooftop solar systems in 10 million low- and middle-income households, adding 30 gigawatts of residential solar capacity by the end of the 2026-27 financial year.

ADB Country Director for India Mio Oka said the programme will make clean energy more affordable and accessible while helping households reduce their exposure to rising electricity prices and supply disruptions. She added that the initiative will also strengthen electricity distribution systems, generate employment, expand opportunities for women and reinforce India's domestic clean energy industry.

The latest financing builds on the programme's first phase, approved in November 2025, which established the policy, financial and digital systems needed to support large-scale rooftop solar deployment.

Lower costs and attract private investment

The second phase is designed to make rooftop solar more affordable by reducing upfront installation costs and encouraging wider participation from households and private investors.

The programme will provide financial support for at least 3.5 million rooftop solar installations, while expanding digital platforms that simplify applications, approvals and project monitoring. Electricity distribution companies will play a larger role in implementing the scheme, supported by greater private sector participation.

The financing will also strengthen domestic manufacturing of solar equipment, encourage the adoption of energy storage technologies, improve recycling systems for solar panels and batteries, and promote wider household use of clean electricity.

Building skills and supporting local communities

A significant part of the programme focuses on developing a skilled workforce to support India's growing renewable energy sector.

At least 6,000 people will receive training and certification, with women making up at least one-third of the participants. The initiative will also encourage the development of new model solar villages and innovative distributed solar projects that can demonstrate practical solutions for communities across the country.

Additional measures include improving accountability among solar vendors, increasing women's participation in the distributed renewable energy sector and strengthening the safe handling, recycling and disposal of solar photovoltaic panels and battery waste.

Supporting climate and energy goals

ADB expects the programme to make a significant contribution to India's renewable energy ambitions by helping the country reach its 30-gigawatt rooftop solar capacity target.

The expansion of residential solar systems is projected to reduce 28.8 million tonnes of carbon dioxide equivalent emissions, while giving millions of households access to more reliable and affordable clean energy.

By combining financial support, stronger infrastructure, workforce development and private sector investment, the programme is expected to accelerate India's transition toward a cleaner, more resilient and more inclusive energy system.