Rooftop Solar Sector in India: A Rapid Growth Story Unfolds
India’s rooftop solar sector is on the cusp of a remarkable surge, with capacity expected to expand by a staggering 75% in just two years. By fiscal year 2027, the sector is anticipated to reach an installed capacity of 30 GW, up from 17 GW in fiscal year 2025. This rapid growth is a testament to the country’s accelerating transition to renewable energy sources, with rooftop solar playing an increasingly vital role in India’s clean energy strategy.
Drivers of Growth: Commercial and Industrial Segments
Businesses are driving expansion by adopting solar solutions to reduce operational costs and meet sustainability objectives. Government initiatives are propelling the sector forward, accelerating deployment. Gujarat is maintaining its leadership position, accounting for about 20% of India’s total solar capacity, as regional trends show.
Rooftop Solar: A Critical Component of India’s Renewable Energy Strategy
Robust policy support, declining technology costs, and growing consumer awareness drive rapid expansion in India’s Rooftop Solar Sector. Consequently, industry experts forecast this segment will play a vital role in achieving India’s 300 GW solar capacity target by 2030. Additionally, it will support India’s transition to sustainable energy sources. Meanwhile, the solar rooftop market is expected to add 8-13 GW of new capacity over the next two transformative years.
Government Initiatives: A Key Catalyst
The Indian government actively promotes rooftop solar adoption through various initiatives. Moreover, the Ministry of New and Renewable Energy sets a target of 40 GW of solar rooftop capacity by 2022. Furthermore, the government introduces policies like net metering, enabling consumers to generate and export excess electricity.
State-wise Breakdown: Gujarat Leads the Way
Gujarat has emerged as a leader in the rooftop solar sector, accounting for about 20% of India’s total solar capacity. Other states such as Maharashtra, Tamil Nadu, and Karnataka are also witnessing significant growth in the sector. As of 2024, India’s cumulative installed rooftop solar capacity stood at 46.15 GW, with 217.62 GW of non-fossil fuel-based energy capacity.
Industry Projections
Industry experts forecast rapid growth in the rooftop solar sector in the coming years. Specifically, a SBICAPS report predicts a 33% CAGR between FY 2025 and FY 2027. Moreover, growing adoption in commercial and industrial segments, as well as declining technology costs, will drive this growth.
Government initiatives, declining technology costs, and growing consumer awareness are driving India’s solar rooftop market towards a remarkable growth spurt. By playing a critical role, it will support India’s transition to sustainable energy sources. Meanwhile, rapid expansion makes this space exciting to watch in the coming years.
Source: TVBRICS