India added 1.2 GW of rooftop solar capacity in the first quarter (Q1) of 2025, up 232% year-over-year (YoY) from 366.5 MW.

Installations in Q1 saw a decline of 6.2% from 1.3 GW in Q4 2024, according to Mercom India Research’s newly released Q1 2025 India Rooftop Solar Market Report.

Rooftop solar accounted for over 18% of the country’s total solar installations during the quarter.

The quarter’s installations were driven by the residential segment under the PM Surya Ghar program, which made up nearly 77% of the capacity additions.

In Q1 2025, the industrial, commercial, and government segments comprised over 16%, nearly 6%, and approximately 0.4% of installations, respectively. The residential sector accounted for 78% of the total installations.

India’s cumulative rooftop solar installations reached 14.9 GW at the end of the quarter.

Installations under the capital expenditure model comprised over 91% of the quarterly additions. Capacity additions under the operational expenditure or renewable energy service company models accounted for about 9% of the installations.

“We saw a very slight decrease in installations compared to the last quarter due to some discrepancies in the PM Surya Ghar portal and a shortage of domestic content requirement modules, which impacted residential rooftop solar installations. However, the C&I figures remained robust since Q1 marks the end of the financial year and many consumers commission their projects around this time to take advantage of tax benefits,” said Priya Sanjay, Managing Director, Mercom India.

State-wise installations

The top ten states accounted for over 86% of the total rooftop solar installations in Q1 2025.

Gujarat, Maharashtra, and Uttar Pradesh led rooftop solar capacity additions, contributing 16%, 14%, and 13%, respectively.

The leading states for the country’s cumulative installed rooftop solar capacity were Gujarat, with 28%; Maharashtra, with 15%; and Rajasthan, with 7%.

Between Q1 2024 and Q1 2025, Uttar Pradesh recorded the highest compounded quarterly growth rate of over 15% in residential rooftop solar, followed by Madhya Pradesh and Kerala, at over 11% and 9%, respectively.

“Uttar Pradesh has been witnessing an increase in rooftop installations mainly due to the state’s policy support. The state aims to install 2.5 million residential rooftop solar systems by 2027. As of March 2025, the installation number was about 100,000,” said Sanjay.

A total of 494.2 MW of rooftop solar tenders were announced in Q1 2025, a nearly 41% YoY decrease. Approximately 82.3% of the tendered capacity in this quarter was dedicated to installing rooftop solar systems on government buildings throughout India.

Average rooftop solar system costs increased by approximately 1% QoQ and were up by nearly 22% YoY.

The Q1 2025 India Rooftop Solar Market Report is 75 pages and covers all facets of India’s rooftop solar market. For the complete report, visit:

https://www.mercomindia.com/product/rooftop-solar-market-report-q1-2025