India’s residential rooftop solar sector has seen a significant boost under the government’s Pradhan Mantri Surya Ghar Yojana (PMSGY), adding approximately 4.9 GW of capacity in just over a year since its launch, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
As of July 2025, the scheme has received over 57.9 lakh applications for residential rooftop solar installations. However, despite a near fourfold increase in applications between March 2024 and July 2025, only 13.1% of the 1 crore (10 million) installation target has been achieved, with just 14.1% of the allocated INR 65,700 crore (USD 7.5 billion) in subsidies released. Analysts note that achieving the FY2027 target of 30 GW capacity remains a considerable challenge.
Among states, Gujarat leads with the highest installed residential rooftop solar capacity of 1,491 MW, followed by Maharashtra, Uttar Pradesh, Kerala, and Rajasthan. These five states together account for 77.2% of the total installed capacity under the scheme.
Jyoti Gulia, Founder of JMK Research, highlighted that PMSGY has expanded its policy framework to accelerate rooftop solar adoption, including a nationwide capacity-building programme training over 3 lakh people since 2024. The scheme also supports innovation through grants covering up to 60% of project costs, encourages the use of verified domestic materials, and promotes solar cities and model solar villages.
Despite these efforts, barriers remain. Low consumer awareness, limited access to finance, and outdated perceptions of high costs continue to restrict adoption, particularly in rural areas, according to Prabhakar Sharma, senior consultant at JMK Research. The report also notes fragmented supply chains for key components such as panels, inverters, and mounting structures, which cause project delays.
Vibhuti Garg, Director at IEEFA – South Asia, emphasized the importance of clear, time-bound rooftop solar capacity targets at the state level to ensure effective policy execution. Meanwhile, Aman Gupta of JMK Research suggested establishing a district-level grievance redressal system to address subsidy disbursement delays and portal issues efficiently.
To increase conversion of applications into installations, the report recommends state- and district-level facilitation cells, consumer outreach campaigns, and the promotion of standardised, plug-and-play rooftop solar kits to simplify installation and minimise delays.
The authors conclude that the long-term success of PMSGY depends not only on subsidies but also on streamlined digital processes, standardised product solutions, and consumer-centric support systems to strengthen India’s residential rooftop solar market.
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