India’s solar energy sector continues its steady expansion, with total installed solar photovoltaic (PV) capacity surpassing 140 GW, marking a significant milestone in the country’s clean energy transition. Industry observers say the growth reflects not only rising capacity additions but also a broader shift toward long-term performance and reliability.
According to Shweta Solar Pvt. Ltd., the sector’s progress has been driven by sustained policy support, improved project execution and strengthening investor confidence. These factors have helped position India among the world’s leading solar markets.
Strong Additions in 2025
Growth accelerated in 2025, with the renewable energy sector adding nearly 44.5 GW of new capacity, the majority of which came from solar installations. Utility-scale ground-mounted projects continued to dominate additions, while rooftop solar installations also contributed significantly, adding close to 7 GW during the year.
Industry data shows rooftop solar installations reached approximately 4.9 GW in the first nine months of 2025 alone—an increase of about 161% compared to the same period the previous year. By early 2026, cumulative rooftop capacity stood at around 18.6 GW. Installers report growing demand not only from metropolitan regions but also from smaller cities and semi-urban areas.
Residential Adoption on the Rise
Residential uptake has strengthened, supported in part by government initiatives such as the PM Surya Ghar Muft Bijli Yojana, which aims to make rooftop systems more accessible to households. Stabilizing equipment prices and rising grid electricity tariffs in several states have further encouraged consumers to view solar installations as a financially viable long-term investment.
Sanjay Garg, Director of Shweta Solar Pvt. Ltd., noted that customer conversations are evolving beyond upfront pricing considerations to focus on durability, degradation rates and long-term system performance under diverse Indian climatic conditions.
Solar Generation and Budget Support
Electricity generation from solar sources increased by approximately 22% in 2025 compared to the previous year, largely driven by recently commissioned projects operating at full capacity.
Policy backing continues to support the sector’s expansion. In the Union Budget 2026–27, over ₹30,500 crore has been allocated to solar programmes—an increase from the previous year—covering both large-scale projects and decentralized installations.
Focus Shifts to Long-Term Performance
Industry stakeholders indicate that as installations expand across residential, industrial and utility-scale segments, greater emphasis will be placed on consistent manufacturing standards and real-world performance data.
With India targeting 500 GW of non-fossil fuel energy capacity by 2030, experts suggest the next phase of solar growth will prioritize reliability, operational efficiency and sustained output over time, shaping the future trajectory of the country’s clean energy ambitions.
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