India’s rooftop solar capacity grew to 7.1 GW in the calendar year (CY) 2025, an over 123% year-over-year (YoY) jump from 3.2 GW in 2024, according to Mercom India Research’s newly released Q4 & Annual 2025 India Rooftop Solar Market Report.

Rooftop solar accounted for more than 19% of the total solar installations in the year. Residential consumers accounted for almost 76% of the total rooftop solar installations in 2025. The industrial, commercial, and government segments accounted for 18%, 5%, and 1% of the capacity added during the year, respectively.

Installations under the capital expenditure (CAPEX) model accounted for 85% of the year’s rooftop solar installations, while capacity additions under the operational expenditure or renewable energy service company (OPEX/RESCO) model accounted for the remaining 15%.

“Rooftop solar reached an all-time high of 7.1 GW in 2025, more than doubling year over year, driven largely by the PM Surya Ghar program, which accounted for a majority of installations. Strong residential adoption, streamlined subsidy disbursals, and digital approvals accelerated deployment across states. We expect installations to grow further in 2026, led by residential systems, with steady demand from the C&I segment. However, ALMM List-II enforcement and rising DCR module prices could lead to higher system costs. Sustaining growth will depend on maintaining cost competitiveness and ensuring smooth execution as compliance requirements increase,” said Raj Prabhu, CEO at Mercom Capital Group.

In 2025, rooftop solar capacity additions were led by Maharashtra, Gujarat, and Uttar Pradesh, accounting for 16%, nearly 16%, and 15%, respectively.

Rooftop solar tenders totalling 3.8 GW were issued in 2025, a 32% rise from the previous year.

India added 2.2 GW of rooftop solar capacity in the fourth quarter (Q4) of 2025, up almost 5% compared to 2.1 GW installed in Q3 2025, and an increase of over 68% YoY compared to 1.3 GW.

Priya Sanjay, Managing Director at Mercom India, said installations were also accelerated by several new states setting their own PM Surya Ghar targets and additional subsidies, added Sanjay.

In Q4, Maharashtra, Uttar Pradesh, and Gujarat led rooftop solar installations, accounting for more than 17%, 15%, and 14%, respectively.

During the quarter, the residential segment drove installations, accounting for nearly 78% of capacity additions. The industrial, commercial, and government segments accounted for over 16%, 4%, and nearly 2% of installations, respectively, during the quarter.

In all, 780 MW of rooftop solar tenders were announced, an over 46% decrease quarter-over-quarter (QoQ) from 1.5 GW.

Rooftop solar system costs slightly declined across module types during the quarter.

Sanjay said that the system cost decrease was not significant enough to drive installations, but the reduced-price volatility benefited consumers, especially those in the residential sector.

Cumulatively, India’s rooftop solar installations reached 20.8 GW at the end of December 2025.

Gujarat remained the leading state for rooftop installations, accounting for almost 25% of cumulative installations, followed by Maharashtra and Uttar Pradesh, comprising more than 15% and nearly 8%, respectively.

The top 10 states accounted for over 80% of cumulative rooftop solar installations as of December 2025.

Looking ahead to 2026, Sanjay said the PM Surya Ghar program will continue to drive installations. “There is growing anticipation around the sector’s trajectory once the program reaches the sunset date of 2027.  The demand from commercial and industrial entities remains consistent as electricity cost savings through rooftop solar is time-tested.”

She added that only policy-related disruptions and supply chain challenges due to the upcoming Approved List of Models and Manufacturers mandate for cells are expected along the way.

The report also includes a comprehensive analysis of net metering policies in all Indian states and Union Territories.

The Q4 & Annual 2025 India Rooftop Solar Market Report is 125 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-q4-2025