New Delhi: The Asian Development Bank has approved a USD 650 million (about Rs 5,780 crore) policy-based loan to help India scale up rooftop solar adoption and extend clean, affordable electricity to 10 million households by 2027.
The loan, provided under Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, will support the Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY), the government’s flagship initiative to make residential rooftop solar widespread across the country.
According to ADB Country Director for India Mio Oka, the programme is helping India push through long-standing barriers to rooftop adoption, including access to finance and uneven regulatory frameworks. “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,” she said.
PMSGMBY offers financial support for residential rooftop solar systems of up to 3 kilowatts. Consumers will receive a 60 per cent subsidy for systems up to 2 kW and a 40 per cent subsidy for the additional capacity between 2 kW and 3 kW.
The programme’s reform agenda covers uniform operational guidelines, quality standards for residential rooftops and measures to increase uptake among low- and middle-income households through collateral-free, low-interest loans. It also aims to build capacity across the sector by training at least 5,000 personnel, including 1,500 women.
Planned interventions include utility-led aggregation models, model solar villages and support for a stronger vendor ecosystem. ADB estimates that the programme will accelerate India’s goal of installing 30 gigawatts of rooftop solar capacity and help cut 28.8 million tonnes of CO2 emissions annually.
The bank said the initiative will also encourage private investment across the renewable energy value chain, creating opportunities for manufacturers, vendors and service providers.
Along with the loan, ADB has approved USD 3 million in technical assistance to support reforms, strengthen institutions and promote gender-inclusive participation in the rooftop solar sector.
BI Bureau
