India Solar Rooftop Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

India Rooftop Solar Market Analysis

The India Rooftop Solar Market size in terms of installed base is expected to grow from 17.60 gigawatt in 2025 to 41.52 gigawatt by 2030, at a CAGR of 18.73% during the forecast period (2025-2030).

India's renewable energy landscape has witnessed a remarkable transformation, driven by technological advancements and declining costs in the solar installation sector. According to the International Renewable Energy Agency (IRENA), the total average installed costs in the residential rooftop solar PV sector decreased by over 80% between 2010 and 2022, making solar installations increasingly accessible to various consumer segments. The integration of advanced technologies like smart inverters and monitoring systems has enhanced the efficiency and reliability of rooftop solar installations. The country's commitment to renewable energy is evident in its achievement of reaching 81.81 GW of total solar power system capacity as of March 2024, with grid-connected rooftop solar capacity accounting for 11.87 GW.

The market is experiencing a significant shift towards distributed generation, particularly in urban and semi-urban areas. Mumbai's climate action plan exemplifies this trend, identifying the potential for generating approximately 1.72 GW through rooftop solar power plants across commercial, industrial, and residential segments. The adoption of net metering policies across various states has created a more favorable environment for consumers, with states like Rajasthan raising the limit for net metering from 500 kW to 1 MW for rooftop solar installations in March 2024. These policy reforms have made rooftop solar installations more financially attractive for consumers while contributing to grid stability.

The integration of battery energy storage systems (BESS) with rooftop solar installations has emerged as a crucial trend, particularly in regions with unreliable grid power. The decreasing cost of batteries, which fell to USD 151 per kilowatt-hour in 2022, has made hybrid solar-plus-storage systems more economically viable. This integration enables consumers to maximize self-consumption of solar energy system power and maintain a reliable power supply during grid outages, addressing one of the key challenges in India's power sector.

The market is witnessing innovative financing models and implementation approaches, particularly in rural and semi-urban areas. Healthcare facilities have emerged as significant adopters of rooftop solar solutions, with successful implementations in government hospitals providing both environmental and economic benefits. The introduction of virtual net metering and peer-to-peer energy trading concepts has opened new possibilities for community solar projects and shared solar installations. For instance, in January 2024, Karnataka's draft plan to enable peer-to-peer trading of solar energy through blockchain technology represents a significant step towards modernizing the rooftop solar ecosystem and creating more flexible energy-sharing models.

India Rooftop Solar Market Trends

Government Emphasis Toward Rooftop Solar Integration

The Indian government has demonstrated a strong commitment to rooftop solar integration through comprehensive policy frameworks and financial incentives. In February 2024, the government announced plans to increase the subsidy for rooftop solar installations to approximately 60% under the new Pradhan Mantri Suryoday Yojana. Additionally, the Ministry of New and Renewable Energy unveiled draft guidelines for the PM Surya Ghar: Muft Bijli Yojana initiative, aimed at facilitating rooftop solar installations in 10 million households with central government subsidy assistance. The program specifically targets households consuming up to 300 units of electricity per month, with implementation planned through March 31, 2027.

State governments have also introduced significant initiatives to promote residential solar adoption. For instance, in February 2024, the Uttar Pradesh government launched an ambitious program to install solar rooftop systems on 25,000 households in Varanasi within a two-month period. Similarly, in November 2023, the Haryana New and Renewable Energy Department introduced the 'Haryana Solar Power Policy, 2023,' which emphasizes various solar initiatives and targets the installation of 1,600 MW through rooftop solar installations by 2030. The government has also streamlined the installation process through the National Portal launched in September 2023, enabling residential consumers nationwide to apply for solar installation and receive subsidies directly in their bank accounts.

Increasing Demand in the Commercial & Industrial Sector

The commercial and industrial sector has emerged as a significant driver of India's rooftop solar market, with solar panels offering a levelized cost of power as low as INR 2-3 per kWh over their 25-year lifespan, compared to much higher grid tariffs of INR 7-9 for industrial power. This substantial cost difference has resulted in average payback periods of just over three years, making solar installation financially attractive for businesses. The sector's growth is further supported by recent technological advancements and innovative financing solutions, particularly for the MSME segment, where several rooftop solar financers have recently formulated MSME-focused lending plans allowing collateral-free loans.

Recent developments demonstrate the sector's growing adoption of commercial solar solutions. In March 2024, Gensol Engineering completed the installation of a 10.6-megawatt rooftop solar project at Trident Ltd's Budhni textile unit in Madhya Pradesh, featuring nearly 20,000 solar modules and offsetting approximately 11,000 tons of carbon dioxide emissions annually. The project ranks among the top five largest rooftop solar projects globally, covering a rooftop area exceeding 70,000 square meters. Additionally, emerging trends such as battery energy storage, virtual net-metering, and peer-to-peer energy trading are expected to boost electricity generation from solar rooftop power plants in the commercial & industrial sectors, with battery costs having decreased significantly from USD 1,220 per kilowatt hour in 2010 to USD 151 per kilowatt hour in 2022.

Segment Analysis: By End User

Industrial Segment in India Rooftop Solar Market

The industrial segment continues to dominate the India rooftop solar market, holding approximately 54% of the total market share in 2024, with an installed capacity of around 8,010 MW. This significant market position is primarily driven by the sector's high electricity consumption patterns and the increasing focus on reducing operational costs through renewable energy adoption. The segment's growth is further supported by various government initiatives and policies promoting solar installation in industrial sectors, particularly focusing on MSMEs (Micro, Small, & Medium Enterprises). Industrial consumers are increasingly adopting rooftop solar solutions due to the attractive cost economics, with solar panels offering a levelized cost of power as low as INR 2-3 per kWh over their 25-year lifespan, compared to the much higher grid tariffs of INR 7-9 for industrial power. The sector's dominance is also reinforced by the availability of larger roof spaces in industrial facilities, making them ideal for high-capacity solar array installations.

Residential Segment in India Rooftop Solar Market

The residential solar segment is emerging as the fastest-growing sector in the India rooftop solar market, projected to expand at a CAGR of approximately 23% during 2024-2029. This remarkable growth trajectory is primarily driven by increasing government support through initiatives like the Pradhan Mantri Suryoday Yojana, which offers substantial subsidies for residential solar installations. The segment's growth is further accelerated by rising electricity tariffs in residential sectors across various states, prompting homeowners to seek cost-effective alternatives. The implementation of simplified procedures for residential solar installations through the national portal, coupled with the availability of Central Financial Assistance (CFA) of around 40% for systems up to 3 kW and 20% for systems between 3-10 kW, has made solar adoption more accessible to residential consumers. Additionally, the increasing awareness about renewable energy benefits and the growing focus on energy independence among households are contributing to the segment's rapid expansion.

Commercial Segment in India Rooftop Solar Market

The commercial solar segment, including public sector installations, represents a significant portion of the India rooftop solar market, offering unique opportunities and growth potential. This segment benefits from the availability of large rooftop areas in commercial buildings such as malls, hospitals, educational institutions, and office complexes, making them suitable for medium to large-scale solar energy system installations. The segment's growth is supported by various state-specific incentives and net metering policies, particularly in states like Gujarat, Maharashtra, and Karnataka. Commercial establishments are increasingly adopting rooftop solar solutions to offset high commercial electricity tariffs and demonstrate their commitment to sustainability. The segment also benefits from innovative financing options and power purchase agreements (PPAs) that make solar adoption more feasible for commercial entities.

Segment Analysis: Grid Type

On-Grid Segment in India Rooftop Solar Market

The on-grid segment dominates the India rooftop solar market, holding approximately 80% market share in 2024, with an installed capacity of 11,869.63 MW. This significant market position is primarily driven by the government's Grid Connected Solar Rooftop Scheme and various supportive policies aimed at achieving 40,000 MW from grid-connected rooftop solar projects by March 2026. The segment's growth is further bolstered by the implementation of net metering policies across various states, with Maharashtra and Rajasthan recently increasing their net metering limits to enhance adoption. The Central Financial Assistance (CFA) scheme, offering substantial subsidies for residential installations, has also played a crucial role in driving the segment's expansion. Additionally, the launch of the National Portal in 2023 has streamlined the online process for consumers to install rooftop solar panels and receive subsidies directly in their bank accounts, making grid-connected systems more accessible and attractive to potential adopters. The segment is projected to grow at around 20% annually from 2024 to 2029, reflecting the strong market fundamentals and continued policy support.

Off-Grid Segment in India Rooftop Solar Market

The off-grid segment represents approximately 20% of the India rooftop solar market in 2024, serving as a crucial solution for areas with limited or no grid connectivity. This segment has gained significant traction through various government initiatives, including the Off-grid Solar Applications Programme run by the MNRE and private sector participation from companies like TATA Power. The segment's growth is particularly notable in rural electrification projects, healthcare facilities, and remote industrial applications. Recent programs like the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) have allocated substantial funding for solar power implementation in tribal areas, demonstrating the government's commitment to off-grid solutions. The segment's development is also supported by technological advancements in battery storage systems and decreasing component costs, making off-grid solutions more economically viable for end-users. Furthermore, the implementation of schemes like PM KUSUM has created additional opportunities for off-grid installations in agricultural applications, contributing to the segment's steady expansion in the market.