India aims for a renewable energy target of 175 GW by 2022, including 40 GW from rooftop solar, requiring an estimated USD 39 billion to achieve, with only 1.25 GW currently installed. This paper, developed by Climate Policy Initiative (CPI), Stockholm Environment Institute (SEI), and ICRIER, proposes using municipal bonds to finance rooftop solar projects. The “solar municipal bond model” could enhance debt availability and reduce costs by aggregating projects through municipalities, which have better access to capital markets. Key barriers include high upfront costs, performance risks, and limited access to debt capital, all of which must be addressed to meet India’s rooftop solar goals.