India’s rooftop solar market will grow on an average 33% annually between FY 2025 and FY 2027, reaching an installed capacity of 30 GW by FY27 from 17 GW in FY25, according to a new report by CareEdge Advisory & Research.
The analysts say the Commercial & Industrial (C&I) segment will play a pivotal role in rooftop solar growth across India.
“With a total renewable capacity of 220 GW as of FY25 and a national target of 300 GW solar capacity by 2030, rooftop solar, particularly in the Commercial & Industrial (C&I) segment, is expected to play a pivotal role in this growth with increasing awareness among businesses about reducing operating costs and meeting sustainability targets fuelling adoption,” say the analysts. “Government incentives, reducing technology costs, and policy support such as net metering and PLI schemes are expected to further accelerate deployment.”
The analysts say the rooftop solar segment currently holds around 20% share of India’s solar mix. The C&I segment continues to dominate the rooftop solar market with 66% share. Payback periods of 3–5 years, falling module prices, and innovative financing models are catalysing adoption in sectors like textiles, pharmaceuticals, retail, and data centres.
The PM Surya Ghar: Muft Bijli Yojana, which aims at rooftop solar installation in one crore households with subsidies up to INR 78,000, is expected to provide strong support to residential adoption. The scheme not only supports low- and middle-income households by reducing their electricity bills but also aims to create nearly 17 lakh jobs, boosting the solar value chain. Residential rooftop solar initiative hit a milestone of 10 lakh installations as of March 10, 2025.
“Rooftop solar installations in India have gained momentum. With the growing C&I demand backed by an improving policy ecosystem, we expect the market to reach nearly 25-30 GW over the next two years,” said Tanvi Shah, director at CareEdge Advisory & Research.
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