In Short : India’s rooftop solar capacity is expected to reach 25–30 GW by FY27, led by the commercial and industrial (C&I) sector, which made up 75% of installations in 2024. Growth is fueled by falling costs, state incentives, and net metering policies. Gujarat and Maharashtra dominate the market, supporting India’s goal of 300 GW solar capacity by 2030.
In Detail : India’s rooftop solar market is witnessing a sharp uptick, with commercial and industrial (C&I) consumers emerging as the dominant force behind its expansion. Projected to grow from 17 gigawatt (GW) in FY25 to between 25 to 30 GW by FY27, the sector is seeing strong traction from businesses looking to cut energy costs and meet sustainability mandates. Currently contributing over 66 per cent to the rooftop solar mix, the C&I segment is leveraging short payback periods, declining module prices, and supportive policies to drive adoption across sectors like manufacturing, retail, and data centers.
“The rooftop solar market in India has gained strong momentum. With increasing C&I demand and an improving policy landscape, we expect capacity to reach nearly 30 GW by FY27,” said Tanvi Shah, director at CareEdge Advisory & Research.
The report found that, India’s rooftop solar sector is on a steep upward trajectory, with capacity projected to jump from 17 GW in FY25 to between 25 to 30 GW by FY27. The surge highlights the growing momentum of decentralised solar energy in India’s clean energy transition, aligning with the national goal of achieving 300 GW of solar capacity by 2030.
Commenting on the development, Divya Prakash Choraria, CEO, Co-founder, Wattpower, said, “This growth is supported by declining technology costs, rising ESG awareness, and favorable policies like net metering and targeted subsidies. Financing models such as renewable energy service company (RESCO) and solar leasing have also reduced the upfront capital burden, encouraging adoption.”
Net Metering Limits Progress
The residential segment is also receiving a significant boost through the central government’s PM Surya Ghar: Muft Bijli Yojana, which aims to install rooftop solar in 1 crore households with subsidies of up to Rs 78,000. As of 10 March 2025, the scheme had already achieved a key milestone with 10 lakh installations. The initiative also aims to generate 17 lakh jobs, enhancing the entire solar value chain.
State-level efforts are further accelerating adoption. As per the report, Gujarat remains a frontrunner with its proactive Surya Gujarat program, while Maharashtra has witnessed strong uptake in the C&I segment, particularly among MSMEs. Rajasthan, Tamil Nadu, and Karnataka also show high potential, with Uttar Pradesh and Bihar poised for growth due to recent net metering reforms and subsidy outreach.
Though Siddharth Bhatia, MD and CEO, ABEnergia, raised some concern and said, “Inconsistent state-level net metering caps remain a challenge. While Rajasthan raised its limit to 1 MW in 2024, many states retain restrictive 500 kW caps, forcing larger installations into less lucrative gross metering frameworks. This regulatory inconsistency hinders the sector’s full potential.”
He also made some suggestion to states trying to replicate Gujarat and Maharastra’s success. He said that states looking to replicate this success, we recommend a three-pronged approach: first, establishing consistent, long-term policies with net metering caps of at least 1 MW to encourage larger installations; second, investing in distribution infrastructure modernisation to accommodate bidirectional energy flows; and third, expanding skilling initiatives to meet the demand for 1.7 million solar jobs targeted under national schemes.
Progress In Clean Energy
Falling technology costs, increasing consumer awareness, and supportive policies like net metering and the Production Linked Incentive (PLI) scheme are expected to continue propelling the sector. Report found that, with a total renewable energy capacity of 220 GW as of FY25, rooftop solar is well on track to become a key enabler of India’s ambitious clean energy future.
