en.Wedoany.com Reported - The World Bank's Executive Board has approved an $890 million financing package to accelerate India's national rooftop solar program, supporting the installation of solar systems for millions of households.

This financing will support the Indian government's "PM Surya Ghar: Muft Bijli Yojana" initiative, which aims to expand rooftop solar coverage to 10 million rural and urban households, while reducing electricity costs for consumers and strengthening domestic solar manufacturing capacity. The 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.

In addition to public financing, the World Bank stated that it will mobilize an additional $4.2 billion in private sector financing through commercial loans, enabling financial institutions to support households in installing rooftop solar. This investment is expected to create approximately 1.7 million jobs across the renewable energy manufacturing, installation, and service value chain.

Paul Proccee, Acting Country Director for India at the World Bank, stated that the World Bank has supported India's rooftop solar sector for over a decade, mobilizing more than $2 billion in funding and driving market growth from 500 MW of installed capacity to over 27 GW. This new financing will help India scale up residential solar while creating jobs in the supply chain and installation ecosystem.

India has set a target of achieving net-zero emissions by 2070 and plans to increase the share of non-fossil fuel energy resources in its electricity mix to 60% by 2035. While utility-scale solar deployment has expanded rapidly in recent years, the adoption of residential rooftop solar remains relatively limited. The PMSMGBY program aims to address barriers to residential solar adoption by providing incentives for rooftop installations, supporting local solar equipment manufacturing, and expanding access to distributed clean energy.

Moez Cherif, Task Team Leader for the program, stated that the program will transform the residential solar market by removing financial barriers and building the capacity of distribution companies, banks, and suppliers to provide integrated service solutions. Through collateral-free financing, households can install solar power generation and significantly reduce their monthly electricity bills.

This funding supports India's renewable energy expansion, with rooftop solar being central to scaling up distributed generation and reducing household energy costs. According to government data earlier this year, as of March 2026, India had installed 9.56 GW of rooftop solar capacity under PMSMGBY. Since the program's launch in 2024, over 2.62 million systems have been deployed, benefiting approximately 3.24 million households.