How India's rooftop solar market is on a robust growth trajectory

India’s rooftop solar market is on a robust growth trajectory, driven by increasing energy costs, supportive government policies and growing corporate commitments toward sustainability. The market is expected to grow at a CAGR of 33 per cent from FY 25 to FY 27, with the total installed rooftop capacity projected to grow from 17 GW in FY25 to 30 GW by FY27. Gujarat and Maharashtra together account for nearly 41 per cent and 23 per cent share, respectively, in the total installed capacity for rooftop solar. As per a report by CareEdge Advisory and Research the Commercial and Industrial (C&I) segment is expected to play a pivotal role in the growing rooftop solar installations across India.

The report points out that this growth showcases a strong momentum in the sector. The expansion is driven by India’s broader energy transition goals, with solar power emerging as a central pillar in the country’s clean energy roadmap. With a total renewable capacity of 220 GW as of FY25 and a national target of 300 GW solar capacity by 2030. It is expected that rooftop solar, particularly in the Commercial and Industrial (C&I) segment, is expected to play a pivotal role in this growth. As of FY25, India’s rooftop solar capacity stood at 17.02 GW, and increasing awareness among businesses about reducing operating costs and meeting sustainability targets is fuelling adoption. Government incentives, reducing technology costs, and policy support such as net metering and PLI schemes are expected to further accelerate deployment.

Interestingly as per the report the PM Surya Ghar Yojana: Energising Residential Rooftop Adoption The PM Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar in 1 crore households with subsidies up to Rs 78,000, is expected to provide strong support to residential adoption. The scheme supports low and middleincome households by reducing their electricity bills. It also aims to create nearly 17 lakh jobs, boosting the solar value chain. Recently, rooftop solar initiative achieved a historic milestone with 10 lakh installations as of March 10, 2025.

As per the CareEdge Advisory and Research report the state of Gujarat is one of the top states in the country in the rooftop solar, particularly in the Commercial and Industrial (C&I) segment. It has a “Surya Gujarat” programme. At the same time Maharashtra has seen strong C&I demand, especially from MSMEs and urban commercial hubs. Other high-potential states include in the country include Rajasthan that has strong sunlight and growing industrial needs, offering plenty of room for solar power growth. Tamil Nadu and Karnataka also have a strong C&I base, and policy support could push capacities growth. Uttar Pradesh and Bihar have had recent state-level rooftop solar policies, including simplified net metering and increased subsidy awareness which is expected to drive higher residential adoption in these states.

The report observes that the rooftop solar segment which currently holds around 20 per cent share of India’s solar mix is gaining importance due to its distributed nature and direct consumer engagement. In the residential segment, subsidies by the central government, state-level net metering policies, and growing electricity bills have collectively resulted in increasing traction for the residential solar segment. States like Gujarat Maharashtra, Uttar Pradesh, Kerala, Rajasthan etc have been at the accounting for more than 45 per cent of total rooftop capacity due to proactive DISCOM engagement and strong state incentives.

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