Sunlight streaming onto rooftops across India is about to become a powerful income generator for millions of families — and a major boost for clean energy. The World Bank announced a massive $890 million financing package to accelerate India's national rooftop solar program, with the goal of bringing solar power to 10 million households across the country.
The program, called PM Surya Ghar: Muft Bijli Yojana, offers incentives for families in both rural and urban areas to install solar panels on their roofs. The financing includes an $820 million loan from the International Bank for Reconstruction and Development, a $60 million concessional loan from the Clean Technology Fund, and a $10 million grant. But that's not all — the World Bank will also mobilize an additional $4.2 billion in private financing through commercial loans to help households install their solar systems.
The impact stretches far beyond lower electricity bills. The World Bank estimates the program could create 1.7 million job opportunities across the renewable energy manufacturing, installation, and service sectors. "Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills," said Moez Cherif, the program's task team leader.
India has already made remarkable progress in solar energy. The World Bank has supported India's solar rooftop sector for over a decade, helping grow installed capacity from just 500 megawatts to more than 27 gigawatts — a more than fifty-fold increase. The country now aims to get 60 percent of its electricity from clean, non-fossil sources by 2035.
Meanwhile, across the border in Pakistan, the World Bank approved $375.9 million to strengthen the country's power transmission network through a project called the Grid Stability Enhancement Project. This is the first phase of a 10-year program designed to modernize Pakistan's electrical grid, reduce frequent power outages, and bring more renewable energy to homes and businesses.
The Pakistan project will install advanced equipment including Static Synchronous Compensators, or STATCOMs — specialized devices that help stabilize the flow of electricity — at three major high-voltage substations. These upgrades will allow Pakistan to harness 640 megawatts of wind energy that currently goes to waste, enabling full use of 1,840 megawatts of wind capacity in southern Pakistan. The improvements will also support an additional 491 megawatts of planned renewable energy projects from private companies.
Together, these investments represent a significant shift toward clean energy in South Asia — bringing reliable electricity to millions while creating jobs and reducing dependence on fossil fuels.