ADB to provide US$650 million loan to accelerate Indian rooftop solar deployment

December 3, 2025
Facebook
Twitter
LinkedIn
Reddit
Email
A Freyr Energy rooftop solar project in India.
The Indian government has invested US$1.05 billion into rooftop solar deployments. Image: Freyr Energy.

The Asian Development Bank (ADB) has approved a US$650 million loan to accelerate rooftop solar PV deployment in India under the government’s ‘Pradhan Mantri Surya Ghar: Muft Bijli Yojana’ (PMSGY) initiative.

Delivered under subprogram one of ADB’s Accelerating Affordable and Inclusive Rooftop Solar System Development Program, the ADB loan will include US$3 million in “technical assistance” and help implement the goals of the initiative. While the ADB did not specify how the finance would be used, the PMSGY programme aims to cover some of the costs of rooftop solar installations—providing a 60% subsidy for systems up to 2kW and a 40% subsidy for systems between 2-3kW—so this is a possible use of the money.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The PMSGY programme was introduced in 2024 alongside a government investment of INR92.8 billion crore (US$1.05 billion) to grow the country’s operational rooftop solar capacity to 30GW, and deliver broader benefits for the Indian solar sector, such as the training of at least 5,000 personnel, including 1,500 women.

“The program is accelerating India’s clean energy transition by removing long-standing barriers to rooftop solar adoption, including financing constraints and regulatory gaps,” said ADB country director for India Mio Oka.

The PMSGY initiative has yielded immediate results, with India installing 4.9GW of residential rooftop solar capacity in the first half of this year, according to the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research, and as much as 5.8GW of new rooftop capacity in the first nine months of the year.

However, translating the significant desire for projects into operational PV systems has proven more challenging. Between March 2024 and July 2025, applications for residential rooftop applications grew nearly fourfold, but three states have a conversion ratio—a measure of successful deployments as a percentage of total applications—lower than 15%, and as of July, only 14.1% of allocated government subsidies had been disbursed.

The news follows the ADB’s investment of US$331 million into a hybrid wind-solar-battery energy storage project in India in November.

Read Next

February 20, 2026
NTPC has commissioned 165MW of solar capacity at its 1.25GW Khavda-II solar project in Gujarat.
Premium
February 19, 2026
Making investment decisions based on an entire renewable energy portfolio, rather than the merits of an individual project, is now the norm.
February 18, 2026
Utility-scale solar and wind curtailment in Australia’s NEM reached a record high of over 7TWh in 2025, according to analyst Rystad Energy.
February 18, 2026
Testing and Certification company UL Solutions has launched a new cybersecurity certification programme for distributed energy resources (DER) and inverters.
February 17, 2026
Jupiter International has commissioned its 1GW third solar cell production line online at its Baddi facility in Himachal Pradesh.
February 17, 2026
ACEN Australia has announced the integration of its 400MW Stubbo Solar project in New South Wales into its AU$750 million (US$530 million) non-recourse portfolio debt facility.

Upcoming Events

Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain