India rooftop solar market 2025

Why the India Rooftop Solar Market 2025 is Booming

The India rooftop solar market 2025 is witnessing unprecedented growth.

Driven by government subsidies, rapidly falling solar prices, and supportive DISCOM policies, India added ~2.8 GW of rooftop solar capacity in the first half of 2025 alone up 158% year-over-year.

Reports from Mercom India reveal 1.2 GW rooftop additions in Q1 2025 (↑232% YoY) and 1.6 GW in Q2 2025, making this the fastest growth period in India’s rooftop history.

This surge is largely fueled by the Ministry of New and Renewable Energy (MNRE)-backed PM Surya Ghar: Muft Bijli Yojana, which aims to add rooftop systems in 1 crore households using upfront capital subsidies and a streamlined national portal.

In short, the India rooftop solar market 2025 has transformed from a niche segment into a mainstream power revolution.

India Rooftop Solar Market 2025: State-Wise Leaders

Gujarat, Maharashtra, and Uttar Pradesh Lead the India Rooftop Solar Market 2025

According to ET EnergyWorld and Mercom, the top rooftop solar states in the India rooftop solar market 2025 are:

• Gujarat: Market leader with strong policy support, DISCOM execution, and early residential adoption.

• Maharashtra: Surged past 1 GW rooftop milestone with aggressive urban programs.

• Uttar Pradesh: Rapid adoption under PM Surya Ghar scheme has boosted its ranking.

• Kerala and Rajasthan: Consistent growth from residential and institutional buyers.

These five states contributed ~64% of India’s rooftop solar installations in Q2 2025.

📌 If you are an EPC or solar installer, build your 2025 GTM plan around these states first.

Subsidies Driving the India Rooftop Solar Market 2025

The PM Surya Ghar: Muft Bijli Yojana is the primary catalyst for the India rooftop solar market 2025 boom.

Key facts:

• Total outlay: ₹75,021 crore (implementation until FY 2026–27).

• Subsidy: ₹30,000/kW up to 2 kW + ₹18,000/kW for the next 1 kW (max ₹78,000 for >3 kW systems).

• Implementation: Centralized national portal + empanelled vendor list.

• Progress: Thousands of crores disbursed, millions of households registered.

Impact: Residential systems now achieve payback in 4–6 years in many states, creating a strong economic pull for adoption.

Segment Mix in the India Rooftop Solar Market 2025

Residential is driving the growth in the India rooftop solar market 2025.

• Residential share: ~74% of new installations in Q2 2025

• Industrial: 19%

• Commercial: 6%

• Government: <1%

• CAPEX model: 88% share

• OPEX/RESCO model: 12% share

📌 For EPCs: Focus on fast-moving residential systems (3–5 kW) while building industrial lead funnels for higher ticket sizes.

CAPEX vs OPEX in the India Rooftop Solar Market 2025

CAPEX (own the system):

• Most popular choice for homes, SMEs

• Faster ROI (especially with subsidies)

• Long-term energy cost savings

OPEX/RESCO (pay per kWh):

• Used mainly by large commercial & industrial players

• Low upfront cost, third-party ownership

• Best for companies with balance sheet constraints

In 2025, CAPEX dominates the India rooftop solar market because subsidies make ownership extremely attractive.

Supply Chain & Technology in the India Rooftop Solar Market 2025

The India rooftop solar market 2025 has benefitted from:

• Cheaper modules: Domestic manufacturing scale-up + global price decline.

• Standardization: Rooftop kits (3–5 kW) now pre-bundled by vendors

• National portal: Faster approvals, transparent subsidy tracking.

• Improved inverters & BOS: Longer warranties, remote monitoring features.

This has made rooftop projects faster to deploy and lower risk for EPCs and homeowners alike.

Key Opportunities in the India Rooftop Solar Market 2025

For Homeowners Entering the India Rooftop Solar Market 2025

• Apply on the PM Surya Ghar portal using empanelled vendors.

• Ideal system size: 3-5 kW

• Typical payback: 4-6 years

• Get net-metering approval early

For SMEs in the India Rooftop Solar Market 2025

• Compare CAPEX vs OPEX LCOE over 10 years

• Secure strong service SLAs from EPCs

• Use rooftop solar to hedge against tariff hikes

For EPC Companies Targeting the India Rooftop Solar Market 2025

• Prioritize Gujarat, Maharashtra, and Uttar Pradesh first.

• Offer fixed-price packages with portal handling as a value-add

• Track Mercom & MNRE reports quarterly for demand forecasting.

Outlook: The Future of the India Rooftop Solar Market 2025

India’s overall renewable energy additions hit 21.9 GW in H1 2025 (solar + wind), with rooftop showing the steepest growth curve among all segments.

Based on current momentum and subsidy disbursal, the India rooftop solar market 2025 is on track to hit 5.5–6.5 GW annualized capacity additions by year-end more than double its pre-2024 pace.

Key drivers going forward:

• PM Surya Ghar subsidy continuity

• Rapid state DISCOM onboarding

• Falling hardware prices

• Strong residential demand in Tier-2/3 cities

• Increasing industrial rooftop interest

FAQs About the India Rooftop Solar Market 2025

Q1. How much rooftop solar was added in 2025 so far?
~2.8 GW in H1 2025 (1.2 GW Q1 + 1.6 GW Q2).

Q2. Which states lead the India rooftop solar market 2025?
Gujarat, Maharashtra, Uttar Pradesh, Kerala, Rajasthan.

Q3. What is the PM Surya Ghar subsidy amount?
₹30k/kW for 2 kW + ₹18k/kW next 1 kW (₹78k max).

Q4. Which model is better- CAPEX or OPEX?
CAPEX dominates in 2025 due to faster ROI; OPEX suits large industries.

Q5. What is the market outlook for 2025?
Likely 5.5–6.5 GW rooftop additions by year-end, the fastest in India’s history.

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Conclusion: The Rise of the India Rooftop Solar Market 2025

The India rooftop solar market 2025 is not just growing, it’s transforming.
With massive policy support, falling costs, and record demand, rooftop solar has become India’s fastest-growing renewable segment.

For EPCs, installers, and homeowners, this is the best time in history to adopt rooftop solar.
Act now because the rooftops of 2025 are building the energy future of India.

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• Building-Integrated Photovoltaics (BIPV): The Future of Solar Energy in Architecture

• How AI and IoT are Transforming Solar Plant Operations

• Best Solar Companies in India and Why?

• Affordable Solar Solutions in India

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⚠️ Disclaimer

This blog is for educational purposes only. Policy details, subsidies, and market data change frequently. Verify with official sources and DISCOMs before investment. All trademarks belong to their respective owners.