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Mumbai, Feb 26: India’s rooftop solar market witnessed record growth in 2025, with installations reaching 7.1 GW, a 123% increase over 3.2 GW installed in 2024, according to the Q4 & Annual 2025 India Rooftop Solar Market Report by Mercom India Research. The surge was primarily driven by the PM–Surya Ghar: Muft Bijli Yojana program, which facilitated widespread adoption among residential consumers.

 Residential rooftops dominated the segment, contributing nearly 76% of the total installations. The industrial, commercial, and government sectors accounted for over 18%, 5%, and 1% respectively. Installations under the CAPEX model represented 85% of the total, with the OPEX/RESCO model making up the remaining 15%.

“Rooftop solar reached an all-time high of 7.1 GW in 2025, more than doubling year-over-year, driven largely by the PM Surya Ghar program, streamlined subsidy disbursals, and digital approvals,” said Raj Prabhu, CEO of Mercom Capital Group. “We expect further growth in 2026, led by residential systems, while ensuring smooth execution amidst rising module prices and regulatory compliance requirements.”

State-Wise Growth:

• Maharashtra, Gujarat, and Uttar Pradesh led rooftop solar capacity additions, contributing 16%, nearly 16%, and 15% respectively.

• By December 2025, cumulative rooftop installations reached 20.8 GW, with Gujarat, Maharashtra, and Uttar Pradesh accounting for 25%, 15%, and 8% respectively.

• The top 10 states now represent over 80% of India’s cumulative rooftop capacity.

Quarterly Performance (Q4 2025):

• 2.2 GW of rooftop solar added, a 68% YoY increase from 1.3 GW in Q4 2024.

• Residential segment continued to dominate with 78% of installations.

• Rooftop solar tenders announced totaled 780 MW, reflecting a 46% QoQ decline from 1.5 GW in Q3 2025.

Market Outlook:
Rooftop solar accounted for over 19% of total solar installations in 2025. Residential adoption, supportive policy frameworks, and government programs like PM Surya Ghar have accelerated rooftop deployment. However, sustained growth will depend on cost competitiveness, regulatory compliance, and timely project execution.

The report also provides detailed analysis of net metering policies across all Indian states and Union Territories, offering insights for stakeholders aiming to expand in this rapidly evolving market.

Key Highlights – 2025 Rooftop Solar in India:

• Total rooftop installations: 7.1 GW, up 123% YoY

• Residential share: 76%

• Rooftop solar tenders issued: 3.8 GW, up 32% YoY

• Leading states: Maharashtra, Gujarat, Uttar Pradesh

• Cumulative rooftop solar installations: 20.8 GW

Mercom India Research’s report underscores India’s accelerating transition toward distributed solar generation and the critical role of government programs and state-level policies in driving adoption.