ADB Backs India's Rooftop Solar Mission with $650 Million Loan

The Asian Development Bank (ADB) has approved a $650 million loan to help India speed up rooftop solar adoption and deliver clean, affordable power to 10 million households by 2027.

The funding supports Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, aligned with the government’s Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY).

According to ADB, the programme is designed to break long-standing hurdles such as limited financing options and regulatory gaps. 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.”

Also Read: Insolation Energy Scores Major Rs 516 Crore Solar Module Contracts

Under the scheme, residential users installing rooftop solar systems up to 3 kW will receive financial support. This includes a 60% subsidy for systems up to 2 kW and a 40% subsidy for the portion between 2 kW and 3 kW. The programme also focuses on uniform guidelines, quality standards and expanding access through collateral-free, low-interest loans, helping more low- and middle-income households join the shift to rooftop solar.

The plan will train at least 5,000 people — including 1,500 women — and support utility-led aggregation models, model solar villages, and a stronger vendor network. From an industry standpoint, this push for rooftop solar is expected to open wider opportunities for manufacturers, installers and service providers.

ADB’s support will contribute to India’s target of installing 30 GW of rooftop solar capacity and cutting 28.8 million tonnes of CO2 annually. The loan also includes $3 million in technical assistance to strengthen reforms and expand gender-inclusive participation in the sector.