Asian Development Bank Approves $650 Million Loan to Accelerate India’s Rooftop Solar Rollout

India’s push for affordable clean energy has gained major momentum as the Asian Development Bank approved a $650 million (about ₹5,780 crore) loan to scale residential rooftop solar nationwide. 

ADB Backs India’s Large-scale Rooftop Solar Expansion 

Under the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, the funding will support the government’s Pradhan Mantri Surya Ghar: Muft Bijli Yojana, which aims to bring rooftop solar to 10 million households by 2027.  

As per news reports, ADB Country Director for India Mio Oka said the initiative “is making rooftop solar affordable and accessible for millions of households while creating green jobs, empowering women, and strengthening the financial health of the power sector.” 

The programme addresses key barriers such as financing gaps and uneven regulations by introducing uniform quality standards and enabling collateral-free, low-interest loans for low- and middle-income consumers.  

Residential users installing systems up to 3 kW will receive a 60% subsidy for the first 2 kW and 40% for the next 1 kW, making solar adoption significantly more accessible. 

Growth Impact, Skill Development and National Clean Energy Goals 

Aligned with India’s climate commitments, the programme will help develop at least 5,000 skilled professionals, including 1,500 women, while promoting utility-led aggregation models and model solar villages.  

A robust vendor ecosystem is also expected to emerge as private sector investment increases across the renewable energy value chain. 

ADB projects that these efforts will contribute meaningfully toward India’s goal of installing 30 GW of rooftop solar capacity, reducing 28.8 million tonnes of CO₂ annually and delivering reliable, low-cost energy to households. 

The loan package also includes $3 million in technical assistance to support reforms and strengthen institutional capacities. 

Read More: Insolation Energy Share Price in Focus; Secures ₹516.05 Crore Order for Solar PV Modules! 

Conclusion 

With ADB’s latest support, India’s rooftop solar landscape is set for rapid expansion, unlocking cleaner energy, stronger grid resilience and wider economic opportunities for millions of households. 

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