The Asian Development Bank (ADB) has approved a $650 million policy-based loan to support the Government of India in accelerating the adoption of residential rooftop solar.

The financing falls under Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program and backs the government’s flagship PM Surya Ghar: Muft Bijli Yojana.

The PM Surya Ghar program targets the installation of rooftop solar systems in 10 million households by 2027.

ADB’s subprogram is designed to address structural barriers, including fragmented state-level regulations, inadequate grid infrastructure for integrating decentralized solar, and limited access to financing for low- and middle-income consumers.

The financing package includes $3 million in technical assistance to help implement reforms, build institutional capacity, and support gender-inclusive participation. The measures are expected to enable private-sector participation, especially by micro, small, and medium-sized enterprises involved in manufacturing, installation, and services across the distributed solar value chain.

ADB said its intervention is expected to significantly contribute to India’s objective of installing 30 GW of rooftop solar capacity and delivering affordable solar energy to households. It will also catalyze private-sector investment, creating opportunities for manufacturers, vendors, and service providers across the renewable energy value chain.

The Surya Ghar program aims to create uniform operational guidelines and quality standards for rooftop solar installations, strengthen distribution company capacities, and support utility-led aggregation and renewable energy service company business models.

ADB’s ongoing initiatives focus on institutional capacity and market development in India and will continue to inform and guide engagement.

In October this year, ADB approved a results-based loan of $460 million to modernize rural power infrastructure, promote distributed renewable energy generation, and improve agricultural productivity by providing farmers with reliable daytime solar electricity for irrigation in Maharashtra.

In July this year, the Green Climate Fund approved $200 million (~₹17.07 billion) for a new program led by the Asian Development Bank to enhance large-scale public and private investments in India’s high-impact and emerging clean energy sectors.