Mumbai, July 16 -- The World Bank has approved US$890 million (US$890 mn) in financing to support India's PM Surya Ghar: Muft Bijli Yojana, aimed at accelerating rooftop solar installations for ten million households and expanding access to affordable residential clean energy. The package is intended to boost adoption of rooftop systems and to mobilise US$4.2 billion (US$4.2 bn) in private investment for household projects. The approval is linked to efforts to strengthen financing mechanisms and to promote integrated delivery models.
The financing comprises an US$820 million loan from the International Bank for Reconstruction and Development, a US$60 million concessional loan from the Clean Technology Fund and a US$10 million grant from the IBRD Livable Planet Fund. The World Bank said the programme will leverage commercial lending to broaden household access to rooftop installations and to support supply chain and service providers. The structure is designed to reduce upfront costs for households and to catalyse market finance.
The initiative aligns with India's commitment to reach net-zero emissions by 2070 and to raise the share of non-fossil fuel based electricity generation to sixty per cent by 2035. While utility scale solar has grown rapidly, the residential rooftop segment remains largely untapped, making it a focal point for the clean energy transition. The World Bank indicated the programme is expected to create one point seven mn jobs across manufacturing, installation, maintenance and financing services.
The institution has supported rooftop solar in India for more than a decade, helping to expand installed rooftop solar capacity from about 500 megawatt (MW) to over 27 gigawatt (GW) through investments exceeding US$2 billion (US$2 bn). The programme will also build capacity of power distribution companies, banks and solar vendors to deliver integrated services and to provide collateral free financing to households. These measures are meant to lower electricity bills for beneficiaries while supporting long-term energy security and climate objectives.
Published by HT Digital Content Services with permission from Construction World.