India’s Rooftop Solar Boom: Soar 125% to Record 2.7 GW in Q1 2026

• Record 2.7 GW rooftop solar added in Jan–Mar 2026, up 125% YoY.

• Total rooftop capacity reaches 23.5 GW nationwide.

• Residential segment drives 82% of quarterly installations.

• Maharashtra, Uttar Pradesh, Gujarat lead growth.

• PM Surya Ghar subsidies accelerate household adoption.

India’s rooftop solar sector has delivered its strongest quarterly performance on record, adding 2.7 gigawatts (GW) of capacity during the January–March 2026 period. The figure represents a 125 percent year-on-year increase, according to Mercom India Research’s Q1 2026 India Rooftop Solar Market Report.

With this surge, India’s cumulative rooftop solar capacity reached 23.5 GW by the end of March 2026, marking a significant milestone in the country’s decentralised renewable energy expansion.

Residential Demand Fuels Growth

The rapid expansion has been largely powered by residential adoption, particularly under the government’s PM Surya Ghar: Muft Bijli Yojana scheme. The initiative has significantly lowered entry barriers for households through financial incentives and simplified procedures.

In the March quarter alone, the residential segment accounted for approximately 82 percent of total rooftop installations. Industrial installations contributed around 11 percent, commercial installations about 7 percent, and government projects made up a marginal 0.4 percent of additions.

The data underscores the growing role of individual households in India’s clean energy transition, shifting rooftop solar from a niche industrial solution to a mainstream residential investment.

State-Level Leaders

Geographically, Maharashtra, Uttar Pradesh and Gujarat led new installations during the quarter, contributing more than 17 percent, 16 percent and 15 percent of additions, respectively.

The top 10 states—including Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, Kerala, Andhra Pradesh, Assam, Madhya Pradesh, Chhattisgarh and Haryana—together accounted for 80 percent of cumulative rooftop capacity as of March 2026.

In terms of total installed capacity, Gujarat remained the largest contributor with roughly 24 percent of the national total, followed by Maharashtra at 16 percent and Uttar Pradesh at 9 percent.

Assam stood out for its rapid acceleration, recording a compounded quarterly growth rate of nearly 40 percent between Q1 2025 and Q1 2026. Uttar Pradesh and Andhra Pradesh followed with growth rates exceeding 22 percent and 18 percent, respectively.

Mercom India Managing Director Priya Sanjay attributed Assam’s growth largely to rooftop installations under the PM Surya Ghar programme and several government-backed projects. She noted that large-scale open-access solar projects are not widely feasible in the state, making rooftop systems a primary pathway for solar generation.

PM Surya Ghar Scheme as a Catalyst

Launched in February 2024, the PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar systems in 10 million homes across India. The scheme offers subsidies of up to ₹78,000—approximately $821—for systems up to 3 kW capacity.

By reducing upfront costs and simplifying approval processes, the scheme has accelerated installations, particularly among middle-income households seeking relief from rising electricity bills.

The programme is also aligned with India’s broader renewable energy goals, helping expand decentralised power generation while easing pressure on conventional grids.

Operational Efficiency Becomes Key

As rooftop solar penetration deepens, industry leaders emphasise that execution quality will determine future growth momentum.

Raj Prabhu, Chief Executive Officer of Mercom Capital Group, pointed out that quicker approvals, easier financing access, coordination with distribution companies (DISCOMs), and grid preparedness will increasingly influence expansion rates.

He added that as adoption rises, maintaining installation standards and improving customer experience will be essential to sustaining long-term growth in the residential segment.

Regulatory Adjustments Ahead

The sector may encounter short-term adjustments due to the upcoming implementation of the Approved List of Models and Manufacturers (ALMM) mandate for solar cells.

According to Sanjay, commercial and industrial rooftop segments may experience temporary disruptions as the industry adapts to domestic sourcing requirements. For subsidy-linked projects, modules compliant with domestic content rules and ALMM standards are already mandatory.

However, consumers undertaking private, non-subsidy projects may continue to use imported modules for behind-the-meter installations, potentially cushioning the immediate impact.

The Next Phase of Rooftop Solar

The record-breaking quarter signals that rooftop solar has moved firmly into the mainstream of India’s renewable energy expansion. What was once dominated by industrial rooftops is now increasingly household-driven.

With supportive policy frameworks, rising electricity tariffs and growing climate awareness, rooftop solar is becoming both an economic and environmental decision for Indian consumers.

While regulatory adjustments and supply chain shifts may create temporary headwinds, the structural drivers—policy incentives, state-level support and consumer demand—suggest that India’s rooftop solar momentum is likely to remain strong in the coming years.