New Delhi, July 10: The World Bank’s Board of Executive Directors has approved a major financing package to support India’s national solar rooftop programme, aimed at expanding clean energy access to millions of households and generating employment across the renewable energy sector.
The funding will support the Government of India’s flagship PM Surya Ghar: Muft Bijli Yojana, which seeks to install rooftop solar systems in 10 million rural and urban households. The initiative is designed to reduce electricity costs for families while promoting domestic manufacturing of solar equipment.
India has pledged to achieve net-zero emissions by 2070 and increase the share of non-fossil-fuel-based energy sources to 60 percent of its electricity mix by 2035. While utility-scale solar projects have expanded significantly, residential rooftop solar adoption has remained relatively low.
The World Bank financing package includes:
- USD 820 million loan from the International Bank for Reconstruction and Development (IBRD)
- USD 60 million concessional loan from the Clean Technology Fund
- USD 10 million grant from the World Bank’s Livable Planet Fund
Additionally, the World Bank will help mobilise USD 4.2 billion in private financing through commercial loans to support households in installing rooftop solar systems.
According to the World Bank, the programme is expected to create around 1.7 million jobs across renewable energy manufacturing, installation, maintenance and related services.
Paul Proccee, Acting Country Director of the World Bank in India, said the institution has supported India’s solar rooftop sector for more than a decade, helping expand installed capacity from 500 MW to over 27 GW through investments exceeding USD 2 billion.
He stated that the new financing would help scale up residential solar adoption while creating employment opportunities throughout the supply chain.
Moez Cherif, Task Team Leader for the programme, said the initiative would transform the residential solar market by removing financial barriers and strengthening the capacities of power distribution companies, banks and vendors.
He added that collateral-free financing would enable households to install rooftop solar systems and significantly reduce their monthly electricity bills.
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