India’s energy transition is entering a decisive decade. The country aims to achieve 500 GW of non-fossil fuel-based power capacity by 2030, with rooftop solar (RTS) expected to play a key role. While policies have gained strong momentum, adoption remains uneven, especially across residential and small commercial segments.
Policy progress and recent developments
India’s rooftop solar journey has accelerated with clear government support. The Grid-Connected Rooftop Solar Programme and the PM Surya Ghar: Muft Bijli Yojana, launched in 2024, have provided financial assistance and simplified processes for homeowners. The latter offers subsidies based on system capacity and aims to deliver up to 300 units of free power per month to eligible households.
According to the Ministry of New and Renewable Energy (MNRE), as of September 2025, India’s grid-connected rooftop capacity stands at 21.52 GW, a sharp rise from 8 GW in 2020. In FY2025 alone, 5.1 GW of new rooftop capacity was added, reflecting a 72 per cent year-on-year increase. Gujarat, Maharashtra, Uttar Pradesh, Kerala, and Rajasthan account for nearly three-fourths of installations, with Gujarat leading at over 1.6 GW under the Surya Ghar scheme.
Key on-ground learnings
State-level execution has emerged as a critical success factor. Gujarat’s streamlined digital approval process, strong vendor base, and consumer awareness initiatives have drastically improved adoption timelines. In contrast, states with complex approval procedures or limited vendor capacity have lagged behind.
Data from various rooftop implementers highlight that product innovation and trust significantly influence uptake. In areas with unreliable grid supply, hybrid systems combining solar with battery storage have proven effective. Small enterprises adopting such systems have reported 30–60 per cent reductions in monthly power costs, particularly in states like Uttar Pradesh and Bihar.
Despite clear progress, barriers persist. Many households remain unaware of the financial benefits, and the lack of uniform regulatory norms adds complexity. Approval delays, net-metering inconsistencies, and service reliability issues also continue to affect consumer confidence. For middle-income households, upfront investment remains a deterrent despite subsidies, underscoring the need for easy financing options.
Quantifiable impacts and policy outcomes
The latest capacity data demonstrates that subsidies, financing, and digital processes can significantly accelerate adoption when well-aligned.
The FY2025 growth spike, coupled with the high participation in Surya Ghar, indicates that households respond positively to simplified and transparent schemes. However, distribution companies (DISCOMs) remain cautious, often perceiving rooftop solar as a revenue threat rather than an operational asset. Aligning incentives for DISCOMs could address this hesitation and unlock faster implementation.
Quality assurance also remains central. Instances of substandard equipment and inadequate after-sales support in earlier phases have created trust deficits. Enforcing vendor accreditation, establishing technical standards, and linking subsidies to verified system performance can safeguard consumer interests and strengthen confidence in the market.
Actionable recommendations
1. Harmonise state policies on net metering, subsidy disbursal, and technical standards through a unified digital portal to reduce approval timelines and improve transparency.
2. Expand access to low-interest loans and innovative financing mechanisms such as leasing or pay-as-you-save models, making solar affordable for middle-income households.
3. Introduce performance-linked incentives for DISCOMs to promote rooftop solar adoption rather than discourage it.
4. Mandate vendor accreditation and promote monitoring technologies that ensure long-term performance and service accountability.
5. Enhance awareness through data-driven campaigns and community programs that highlight financial and environmental benefits, particularly in under-penetrated states.
The road ahead
India’s rooftop solar capacity of 21.52 GW is a significant milestone, but scaling it to the required 80 GW by 2030 will demand more than policy intent. The coming years must focus on consistency, quality, and collaboration across policymakers, utilities, and consumers. A transparent, consumer-centric framework supported by robust financing and clear regulations will be key to bridging the remaining gap.
If implemented effectively, rooftop solar can become the cornerstone of India’s clean energy future, reducing electricity costs for millions, enhancing grid resilience, and advancing the country’s broader sustainability goals.
(The director is co-founder & director of Freyr Energy)
