India’s rooftop solar market is witnessing unprecedented growth in 2026, driven by the government’s PM Surya Ghar: Muft Bijli Yojana, rising electricity tariffs, faster subsidy disbursement, and increasing consumer awareness about energy independence. Residential rooftop solar has emerged as one of the fastest-growing segments within India’s renewable energy industry, helping the country move closer to its target of 500 GW of non-fossil fuel capacity by 2030.
The Ministry of New and Renewable Energy (MNRE) reported that India’s cumulative grid-connected rooftop solar capacity reached 30.11 GW by the end of May 2026, compared with 27.88 GW earlier in the year. Total installed solar power capacity has climbed to 162.15 GW, including 121.25 GW of ground-mounted solar projects, 4.36 GW of hybrid solar capacity, and 6.43 GW of off-grid solar installations.
PM Surya Ghar Accelerates Residential Rooftop Solar
The PM Surya Ghar: Muft Bijli Yojana continues to transform India’s residential rooftop solar market. The scheme aims to install rooftop solar systems in 1 crore households with a government outlay of ₹75,021 crore by FY2026-27.
The programme has crossed 40 lakh beneficiary households and is projected to reach 75 lakh households by December 2026, reflecting rapid acceleration in installations across the country.
Industry estimates indicate that India installed 2.7 GW of rooftop solar capacity during the first quarter of 2026 alone. Residential systems accounted for 82 percent of new installations, underlining the success of government incentives and simplified approval processes. Maharashtra contributed 17 percent of Q1 installations, followed by Uttar Pradesh with 16 percent and Gujarat with 15 percent.
Smaller Cities Lead India’s Rooftop Solar Boom
A significant trend in 2026 is the rapid adoption of rooftop solar in Tier-II and Tier-III cities rather than metropolitan areas. Districts including Lucknow, Nagpur, Surat, Varanasi and Ernakulam have emerged as major rooftop solar markets, while several large metros are no longer among the country’s top-performing districts. Consumers are increasingly installing rooftop solar systems to reduce electricity bills, with surplus daytime generation exported to the grid through net-metering arrangements.
Policy Support Strengthens Market Growth
The government has continued refining policy support during 2026. Recent MNRE clarifications allow consumers who voluntarily forgo subsidies under PM Surya Ghar to use non-DCR solar modules, while selected residential consumers have also received exemptions relating to ALMM List-II requirements under specified conditions. These policy changes are expected to improve equipment availability and accelerate project execution.
Market Opportunities and Challenges
The rooftop solar market presents significant opportunities for module manufacturers, inverter suppliers, EPC companies, financing institutions and digital energy service providers. Improved subsidy processing, digital applications, and simplified approvals are making rooftop solar more attractive for households.
However, the sector continues to face challenges including delays in bank financing, varying DISCOM approval timelines, net-metering bottlenecks in certain states, and uneven implementation across the country. Industry observers believe addressing these issues will be critical for achieving the government’s ambitious target of 1 crore solar-powered homes.
India’s rooftop solar market is being led by a mix of integrated renewable energy companies and domestic solar equipment manufacturers that are rapidly expanding production capacity to meet rising demand under the PM Surya Ghar: Muft Bijli Yojana. Tata Power Solar has emerged as one of the country’s largest rooftop solar installers, having completed more than 1.8 lakh rooftop solar installations and executed over 3 GW of EPC solar projects. The company continues to expand its residential rooftop business through integrated installation, financing, and after-sales services.
Waaree Energies has strengthened its leadership with a solar module manufacturing capacity of 15 GW and solar cell capacity of 5.4 GW, while increasing production of high-efficiency TOPCon modules for residential and commercial rooftop projects. Adani Solar is also expanding its integrated manufacturing operations, with around 4 GW of manufacturing capacity, and recently announced shipments of 500 MW of domestically manufactured solar panels in February 2026, highlighting strong demand for locally produced modules.
Vikram Solar has increased its annual module manufacturing capacity to 9.5 GW and reported 50 percent year-on-year revenue growth during the first nine months of FY2026, supported by investments in advanced photovoltaic technologies and export expansion. Premier Energies has expanded its manufacturing footprint to more than 8 GW of solar modules and around 7 GW of solar cells, enabling it to supply ALMM-approved products for both rooftop and utility-scale projects.
RenewSys continues to strengthen India’s domestic solar supply chain with approximately 6.5 GW of module manufacturing capacity while producing photovoltaic cells, encapsulants, and backsheets locally. Emmvee has expanded its manufacturing capabilities to 6.6 GW of solar modules and 2.5 GW of solar cells, while Goldi Solar has increased its module manufacturing capacity to approximately 14 GW as it targets both domestic and export markets.
Outlook
India’s rooftop solar industry is expected to remain one of the country’s fastest-growing renewable energy segments throughout 2026 and beyond. Strong government incentives, rising electricity costs, increasing awareness of clean energy, and growing participation from smaller cities are reshaping the residential solar landscape. As rooftop installations continue to accelerate, India is strengthening its position as one of the world’s largest distributed solar markets while advancing its long-term clean energy and decarbonization goals.
SHAFANA FAZAL