By Vikas Sir, Founder & Senior Faculty – Cosmo Classes | 10 July 2026

The World Bank Board of Executive Directors approved an $890 million financing package for India's national rooftop solar programme on 9 and 10 July 2026. The package supports PM Surya Ghar: Muft Bijli Yojana, India's flagship residential rooftop solar scheme aimed at both rural and urban households, and it marks a major boost to the country's clean-energy transition and household-level power generation.

PM Surya Ghar: Muft Bijli Yojana is a residential rooftop solar programme under which the government provides subsidies to households to install grid-connected solar panels on their rooftops. The scheme targets rooftop solar installations for 10 million (1 crore) households across the country, enabling families to generate their own electricity, reduce power bills and even sell surplus power back to the grid. By decentralising power generation to the point of consumption, rooftop solar reduces transmission losses and eases the burden on the conventional grid.

The $890 million package has a blended structure. It comprises an $820 million loan from the International Bank for Reconstruction and Development (IBRD), a $60 million concessional loan from the Clean Technology Fund (CTF), and a $10 million grant from the Livable Planet Fund. The IBRD is one of the five institutions of the World Bank Group, while the Clean Technology Fund is a multilateral climate-finance mechanism under the Climate Investment Funds framework. This mix of loans, concessional finance and grants is typical of how the World Bank Group funds development projects in member countries.

Beyond the direct financing, the programme is expected to mobilise an additional $4.2 billion in private financing through commercial lending for residential solar installations, and it is projected to create about 1.7 million jobs across manufacturing, installation and services in the renewable-energy value chain. The financing also seeks to reduce financial barriers for households and to build capacity among distribution companies (discoms), banks and vendors, which are critical links in India's electricity supply chain. The initiative aligns with India's broader clean-energy commitments, including its net-zero emissions target for 2070 and its goal of raising the share of non-fossil-fuel energy to 60 per cent of the electricity mix by 2035.

Exam Facts

▶ The World Bank approved $890 million for India's rooftop solar programme.

▶ The scheme supported is PM Surya Ghar: Muft Bijli Yojana, targeting 1 crore households.

▶ Package: $820M IBRD loan + $60M Clean Technology Fund + $10M Livable Planet Fund grant.

▶ IBRD is one of the five institutions of the World Bank Group.

▶ Expected to mobilise $4.2 billion in private financing and create about 1.7 million jobs.

▶ India's net-zero target: 2070; non-fossil energy target: 60% by 2035.

▶ Discoms = electricity distribution companies.

Practice Set (10 Questions)

Q1. The World Bank approved how much financing for India's rooftop solar programme?
A. $500 million
B. $890 million
C. $1.6 billion
D. $4.2 billion

Show Answer

Answer: B – $890 million.

Q2. The financing supports which scheme?
A. PM-KUSUM
B. PM Surya Ghar: Muft Bijli Yojana
C. Saubhagya
D. UJALA

Show Answer

Answer: B – PM Surya Ghar: Muft Bijli Yojana.

Q3. PM Surya Ghar: Muft Bijli Yojana targets rooftop solar for how many households?
A. 1 lakh
B. 10 lakh
C. 1 crore
D. 10 crore

Show Answer

Answer: C – 1 crore (10 million) households.

Q4. The largest component of the $890 million package is a loan from:
A. Clean Technology Fund
B. IBRD
C. Livable Planet Fund
D. Asian Development Bank

Show Answer

Answer: B – IBRD ($820 million).

Q5. IBRD is an institution of which group?
A. IMF
B. World Bank Group
C. WTO
D. OECD

Show Answer

Answer: B – World Bank Group.

Q6. The Clean Technology Fund operates under which framework?
A. Green Climate Fund
B. Climate Investment Funds
C. Global Environment Facility
D. Adaptation Fund

Show Answer

Answer: B – Climate Investment Funds.

Q7. The programme is expected to create about how many jobs?
A. 0.5 million
B. 1.7 million
C. 5 million
D. 10 million

Show Answer

Answer: B – About 1.7 million jobs.

Q8. India's net-zero emissions target year is:
A. 2050
B. 2060
C. 2070
D. 2047

Show Answer

Answer: C – 2070.

Q9. India aims to raise non-fossil energy to what share of its electricity mix by 2035?
A. 40%
B. 50%
C. 60%
D. 75%

Show Answer

Answer: C – 60%.

Q10. Discoms in India's power sector refer to:
A. Generation companies
B. Distribution companies
C. Transmission companies
D. Regulatory bodies

Show Answer

Answer: B – Distribution companies.

UPSC / RPSC Relevance

  • UPSC Prelims: Economy, Environment & Current Affairs (World Bank, climate finance, solar schemes).
  • UPSC Mains – GS Paper III: Infrastructure & Energy and Environment — renewable energy, climate finance and India's clean-energy commitments.
  • RPSC (RAS) Prelims & Mains: Economy & Environment — renewable energy schemes and international financial institutions.

UPSC Mains Descriptive Question

Q. Examine the role of multilateral climate finance, such as World Bank support for rooftop solar, in helping India meet its renewable-energy and net-zero commitments. (250 words, 15 marks)

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