ADB Sanctions USD 650 Million Loan to Accelerate Rooftop Solar Adoption in India
The Asian Development Bank has approved a USD 650 million loan to help India speed up rooftop solar adoption under PM Surya Ghar Yojana and bring clean, low-cost electricity to 10 million homes by 2027.
December 03, 2025. By Mrinmoy Dey
The financing under Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program will support the government’s flagship initiative – Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY) – which aims to make rooftop solar systems widely accessible nationwide.
ADB Country Director for India Mio Oka, said, “The program is accelerating India’s clean energy transition by removing long-standing barriers to rooftop solar adoption, including financing constraints and regulatory gaps. It 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.”
PMSGMBY will provide financial assistance to residential consumers for installing rooftop solar systems of up to 3 kW, with a 60 percent subsidy for systems up to 2 kW and a 40 percent subsidy for additional capacity between 2 kW and 3 kW.
Key reform areas under the program include developing uniform operational guidelines and quality standards for residential rooftop solar systems and facilitating mass adoption among low- and middle-income households through collateral-free, low-interest loans. Aligned with India’s Nationally Determined Contribution targets, the program will enhance the skills and capacity of at least 5,000 personnel, including 1,500 women. It will also support the development of utility-led aggregation models and model solar villages, and foster a robust vendor ecosystem.
ADB’s intervention is expected to significantly contribute to the nationwide objective of installing 30 GW of rooftop solar capacity, achieving annual reductions of 28.8 million tons of CO2 emissions, and delivering affordable solar energy to millions of households. It will also catalyse private sector investment to create opportunities for manufacturers, vendors, and service providers across the renewable energy value chain.
ADB’s financing for the program includes USD 3 million in technical assistance to help implement reforms, build institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.
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