The World Bank has approved an $890 million financing package to accelerate residential rooftop solar deployment under India’s PM Surya Ghar program
The initiative aims to create around 1.7 million jobs while supporting rooftop solar installations for 10 million households
The bank says this financing is expected to leverage $4.2 billion in private investment
The World Bank has approved an $890 million financing package to accelerate India's residential rooftop solar program under the country’s flagship rooftop solar scheme PM Surya Ghar: Muft Bijli Yojana (PMSGMBY).
Introduced in early 2024, the PMSGMBY scheme targets rooftop solar installations for 10 million rural and urban households. It aims to reduce household electricity bills while supporting the growth of domestic rooftop solar manufacturing. The government expects this to contribute 30 GW of installed capacity (see India Eyeing 30 GW Rooftop Solar Capacity With New Scheme).
According to the Ministry of New and Renewable Energy (MNRE), the program has already reached 4 million beneficiary households and will cross 7.5 million by the end of 2026. Touting it as the world’s largest domestic rooftop solar program, the MNRE says the program has helped add over 12 GW of solar capacity as of May 2026.
The initiative is expected to bring clean energy to millions of homes and create around 1.7 million jobs across renewable energy manufacturing, installation, and related services.
The 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.
The World Bank also expects to mobilize an additional $4.2 billion in private financing through commercial loans for household rooftop solar systems. It will also strengthen the capacity of distribution companies, banks, and vendors by removing financial barriers.
“Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills,” said Moez Cherif, Task Team Leader of the program.
According to the World Bank, it has supported India's rooftop solar sector for more than a decade, mobilizing over $2 billion and helping installed capacity increase from 500 MW to more than 27 GW (see World Bank Loan To India).
“This new financing will help India scale up residential solar, while creating job opportunities across the supply chain and installation ecosystem,” added World Bank Acting Country Director for India, Paul Proccee.
Previously, the Asian Development Bank also approved $204.5 million financing for the PMSGMBY (see India’s Flagship Rooftop Solar Scheme Gets ADB’s Backing).
