India’s Rooftop Solar Capacity Expected to Surge by FY27
India’s rooftop solar energy capacity is projected to grow from 17 GW in FY25 to between 25 and 30 GW by FY27, according to a recent report by CareEdge Ratings, India’s second-largest rating agency. This rise supports the country’s broader goal of a clean energy transition with rooftop solar playing a major role in India’s renewable growth.
As of FY25, the country’s total renewable energy capacity reached 220 GW, with a target of 300 GW of solar energy by 2030. Rooftop installations are expanding quickly, especially in commercial and industrial (C&I) sectors, driven by businesses aiming to reduce costs and meet sustainability goals.
Tanvi Shah, Director, CareEdge Advisory and Research, observed that the market is gaining momentum. Shah noted that the rooftop solar market is expected to grow to nearly 25 to 30 GW in the next two years as the growing C&I demand is supported by an improving policy ecosystem.
Policies like net metering and the Production Linked Incentive (PLI) scheme are making rooftop solar more accessible and easier to adopt. The PM Surya Ghar Muft Bijli Yojana aims to install rooftop systems in more than one crore households, offering subsidies up to INR 78,000 and generating around 17 lakh jobs.
Gujarat currently leads in adoption with its ‘Surya Gujarat’ program, while Maharashtra is seeing an increased uptake among MSMEs and commercial centers. As of now, rooftop solar makes up around 20 percent of the country’s solar capacity.