World Bank Approves $890 Million for Rooftop Solar Program
The World Bank has approved an $890 million financing package for the 'PM Surya Ghar: Muft Bijli Yojana' (PM Solar Home: Free Electricity Scheme). This scheme focuses on installing rooftop solar panels on 10 million (1 crore) households across the country. The financing includes contributions from the IBRD, the Clean Technology Fund, and the Livable Planet Fund. The project is expected to generate clean energy, attract private investment, and create approximately 1.7 million jobs. This initiative will strengthen India's 2070 net-zero goal and its national commitments to increase non-fossil fuel energy capacity by 2035.
The World Bank’s Board of Executive Directors approved the $890 million financing package for India's 'PM Surya Ghar: Muft Bijli Yojana' on July 9–10, 2026.
The objective is to expand residential rooftop solar energy projects across the country.
PM Surya Ghar: Muft Bijli Yojana
This is the Government of India's flagship residential rooftop solar scheme, aiming to install solar panels on the rooftops of 10 million households.
The scheme aims to promote clean energy, reduce household electricity expenses, and supply surplus electricity to the grid.
Financing Structure
The $890 million package comprises an $820 million loan from the International Bank for Reconstruction and Development (IBRD), a $60 million concessional loan from the Clean Technology Fund, and a $10 million grant from the Livable Planet Fund.
Economic and Energy Significance
The project is expected to attract approximately $4.2 billion in additional private investment.
Additionally, it is estimated to create around 1.7 million jobs in the renewable energy sector, spanning manufacturing, installation, and maintenance. India's Climate Goals
This scheme will play a pivotal role in achieving India's target of net-zero emissions by 2070 and the commitment to increase the share of non-fossil fuel-based energy in electricity generation to 60% by 2035.
Additionally, it will strengthen the institutional capacity of DISCOMs, banks, and vendors.
UPSC Exam Perspective
For the UPSC exam, topics such as the PM Surya Ghar: Muft Bijli Yojana, rooftop solar, World Bank (IBRD), Clean Technology Fund (CTF), net-zero emissions, renewable energy, energy transition, and India's climate commitments are extremely important.
