World Bank Approves $890 Million for PM Surya Ghar Rooftop Solar Scheme

• World Bank approves $890 million for PM Surya Ghar scheme.
• Programme aims to attract $4.2 billion in private investment.
• Around 1.7 million jobs could be created through the solar ecosystem.

India: The World Bank has approved a financing package of $890 million to support the expansion of India’s PM Surya Ghar: Muft Bijli Yojana, the country’s flagship rooftop solar programme. The announcement is expected to accelerate residential solar adoption across India by improving access to affordable financing and encouraging greater private sector participation.

The funding is significant as it supports India’s clean energy goals while helping millions of households reduce their electricity costs.

The approved 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 Livable Planet Fund.

According to the World Bank, the programme is also expected to unlock nearly $4.2 billion in private investment, mainly through commercial lending for rooftop solar installations. The scheme aims to install rooftop solar systems on 10 million homes, making it one of the world’s largest residential solar initiatives.

Speaking on the announcement, Paul Proccee, Acting Country Director for India at the World Bank, said the institution has supported India’s rooftop solar sector for over a decade, helping installed capacity grow from 500 MW to more than 27 GW. He added that the latest financing will accelerate residential solar adoption while generating employment opportunities across manufacturing, installation, operations, and maintenance.

Moez Cherif, Task Team Leader for the programme, said collateral-free financing will help remove financial barriers, allowing more households to install rooftop solar systems and reduce monthly electricity bills.

The investment is expected to strengthen the country’s rooftop solar ecosystem by supporting banks, electricity distribution companies (DISCOMs), and solar solution providers. The World Bank estimates that the programme could create around 1.7 million jobs across manufacturing, installation, maintenance, and related services.

Increased residential solar adoption is also expected to reduce dependence on conventional power sources and support India’s transition to cleaner energy.

Going forward, the financing will be used to expand affordable loan access, improve institutional capacity, and encourage greater private investment in the residential solar market. The initiative also aligns with the World Bank’s broader development strategy for India, which focuses on clean energy, job creation, and mobilising private capital for sustainable infrastructure projects.

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