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    India’s Rooftop Solar Capacity Expected to Reach 25–30 GW by FY27, Says Report

    EnvironmentEnergyIndia’s Rooftop Solar Capacity Expected to Reach 25–30 GW...
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    India’s Rooftop Solar Capacity Expected to Reach 25–30 GW by FY27, Says Report

    Among states, Gujarat remains a national leader through its ambitious Surya Gujarat programme, while Maharashtra is witnessing a surge in C&I adoption – particularly among micro, small, and medium enterprises and urban commercial centres.

    India’s rooftop solar energy capacity is projected to grow significantly, rising from the current 17 GW to between 25 and 30 GW by FY27, according to a report released Tuesday by CareEdge Advisory & Research.

    The report estimates an average annual growth rate of 33 per cent in rooftop solar installations over the next two fiscal years – driven by a combination of rising energy demands, falling technology costs, and supportive policy frameworks. This rapid growth aligns with India’s broader clean energy ambitions, where solar power is emerging as a cornerstone of the country’s decarbonisation strategy.

    As of FY25, India’s total renewable energy capacity stood at 220 GW, with a national goal of reaching 300 GW of solar capacity by 2030. Rooftop solar, particularly within the Commercial and Industrial (C&I) segment, is poised to play a critical role in reaching that target.

    “Rooftop solar installations in India have gained momentum,” said Tanvi Shah, Director at CareEdge Advisory and Research. “With growing demand from the C&I sector and a supportive policy ecosystem, we expect the market to touch nearly 25–30 GW over the next two years.”

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    According to the report, rooftop solar now accounts for approximately 20 per cent of India’s total solar capacity. The C&I segment dominates the rooftop space with a 66 per cent share, propelled by businesses increasingly seeking to cut operational costs and meet sustainability commitments. Sectors such as textiles, pharmaceuticals, retail, and data centres are among the key adopters, benefiting from payback periods of just 3–5 years and access to flexible financing models.

    Economic Viability

    Policy incentives are also fuelling the expansion. Net metering provisions, declining costs of solar modules, and government-backed initiatives like the Production Linked Incentive (PLI) scheme are creating a favourable environment for adoption.

    The residential rooftop segment is gaining traction as well, spurred by the central government’s PM Surya Ghar: Muft Bijli Yojana. The scheme aims to install rooftop solar systems in one crore households, offering subsidies of up to ₹78,000. Designed to ease electricity bills for low- and middle-income families, the programme also aims to generate nearly 17 lakh jobs, giving a significant boost to the domestic solar ecosystem.

    As of March 10, 2025, India’s residential rooftop solar initiative hit a milestone of 10 lakh installations, signalling growing public participation in the energy transition.

    Among states, Gujarat remains a national leader through its ambitious Surya Gujarat programme, while Maharashtra is witnessing a surge in C&I adoption – particularly among micro, small, and medium enterprises (MSMEs) and urban commercial centres.

    While utility-scale solar still constitutes the bulk of India’s solar power mix, the rooftop segment is gaining increasing importance due to its decentralised nature and ability to directly engage consumers.

    CareEdge analysts conclude that the combination of economic viability, regulatory support, and climate consciousness will continue to drive strong rooftop solar growth in the years ahead.

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