The Asian Development Bank (ADB) has approved an $850 million loan to support reforms which will fast-track the rollout of the Indian government’s flagship rooftop solar program, the PM Surya Ghar: Muft Bijli Yojana.

The loan is part of ADB’s subprogram 2 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development program. It builds on Subprogram 1, approved last year, which established the policy, institutional, digital, financing, and market foundations for large-scale rooftop solar deployment.

The new financing will help scale rooftop solar adoption by improving incentives, financing, grid readiness, utility engagement, skills, and digital monitoring, while supporting domestic manufacturing, storage, recycling, and household use of clean energy.

Upfront costs will be reduced and adoption accelerated under the program through financial assistance for at least 3.5 million rooftop installations, digital application and monitoring systems, distribution company participation, and private sector engagement.

The program includes training and certification for at least 6,000 people, at least one-third of whom are women, and supports the development of model solar villages. It will also improve the safe handling and recycling of solar photovoltaic panels and battery waste.

Launched in 2024, PM Surya Ghar aims to install rooftop solar systems for 10 million low- and middle-income households, adding 30 GW of residential solar capacity by fiscal year 2027.

“The program supports a people-centered energy transition by reducing exposure to energy price and supply shocks, strengthening distribution systems, creating green jobs, expanding opportunities for women, and building stronger domestic clean energy value chains,” said Mio Oka, Country Director for India, ADB.

In July, renewable energy solutions provider Serentica Renewables secured a $345.1 million loan agreement from a consortium of lenders led by the ADB. The debt financing was raised to develop and refinance a 395.4 MW hybrid power project in Koppal, Karnataka. The deal was executed through Serentica’s special-purpose vehicle, Serentica Renewables India 1.

For the deal, ADB had mobilized around $207.1 million from the Export-Import Bank of India, New Development Bank, and Sumitomo Mitsui Banking Corporation.