The World Bank has approved an $890 million (~₹84.95 billion) financing package to support the PM Surya Ghar: Muft Bijli Yojana.

The financing package comprises an $820 million (~₹78.27 billion) loan from the International Bank for Reconstruction and Development (IBRD), a $60 million (~₹5.73 billion) concessional loan from the Clean Technology Fund, and a $10 million (~₹954.48 million) grant from the IBRD’s Livable Planet Fund.

The World Bank-supported program will also mobilize approximately $4.2 billion (~₹400.88 billion) in private financing through commercial loans to help households install rooftop solar systems.

PM Surya Ghar aims to incentivize rooftop solar installations for 10 million rural and urban households nationwide. The program is intended to reduce household electricity costs and encourage local manufacturing of rooftop solar equipment.

India has set a target of achieving net-zero emissions by 2070 and to increasing the share of non-fossil-fuel-based energy sources in its electricity mix to 60% by 2035.

According to Paul Procee, the World Bank’s acting Country Director for India, the World Bank has supported India’s rooftop solar sector for more than a decade, mobilizing over $2 billion that helped expand installed rooftop solar capacity from 500 MW to more than 27 GW.

He added the new financing is intended to help scale residential rooftop solar while creating employment opportunities across manufacturing, installation, and related services.

The World Bank said that its supported program includes collateral-free financing to enable households to install rooftop solar systems and reduce their monthly electricity bills.

The financing program is expected to create approximately 1.7 million job opportunities across renewable energy manufacturing, installation, and service value chains.

In February 2026, the World Bank Group’s Multilateral Investment Guarantee Agency issued a $197.67 million five-year guarantee to Citibank N.A. for its non-shareholder loan to the State Bank of India.

According to Mercom India Research’s Q1 2026 India Rooftop Solar Market Report, the country added 2.7 GW of rooftop solar capacity in the first quarter of 2026, a year-over-year growth of 125.4% from 1.2 GW and a 25.4% quarter-over-quarter jump from 2.2 GW.