World Bank backs India’s rooftop solar push with $890 million, targets 1.7 million green jobs

THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 10, 2026

In a significant boost to India’s clean energy transition, the World Bank’s Board of Executive Directors has approved a financing package of $890 million to accelerate the country’s rooftop solar program, a move expected to expand access to clean energy for millions of households, create 1.7 million jobs, and unlock billions of dollars in private investment.

The funding will support the Government of India’s flagship PM Surya Ghar: Muft Bijli Yojana, which aims to install rooftop solar systems in 10 million rural and urban households across the country. The initiative is designed to lower household electricity bills, expand renewable energy adoption, and strengthen domestic manufacturing of solar rooftop equipment.

The World Bank’s financing package comprises an $820 million loan from the International Bank for Reconstruction and Development (IBRD), a $60 million concessional loan from the Clean Technology Fund, and a $10 million grant from the IBRD’s Livable Planet Fund. The multilateral lender will also mobilize an estimated $4.2 billion in private financing through commercial loans to help households install rooftop solar systems.

India has committed to achieving net-zero emissions by 2070 and increasing the share of non-fossil-fuel-based energy to 60 percent of its electricity mix by 2035. While utility-scale solar capacity has expanded rapidly in recent years, residential rooftop solar adoption has lagged, prompting the government to introduce targeted incentives under the PM Surya Ghar scheme.

 “The World Bank has been supporting India’s solar rooftop sector for over a decade, mobilizing more than $2 billion to catalyze market growth from 500 MW to over 27 GW of installed capacity,” said Paul Proccee, World Bank Acting Country Director for India. “This new financing will help India scale up residential solar, while creating job opportunities across the supply chain and installation ecosystem.”

The program is expected to generate employment across renewable energy manufacturing, installation, maintenance, and related services, while strengthening the country’s clean energy supply chain.

 “The program will transform the residential solar market by removing financial barriers and building the capacity of distribution companies, banks, and vendors to deliver integrated service solutions,” said Moez Cherif, Task Team Leader of the program. “Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills.”