May 28, 2025 – India added 1.2 GW of rooftop solar capacity in the first quarter (Q1) of 2025, a drop of over 6% from 1.3 GW in Q4 2024. Installations were up 232% year-over-year (YoY) compared to the 366.5 MW installed in Q1 2024, according to Mercom India Research’s newly released Q1 2025 India Rooftop Solar Market Report.
The capacity added during the quarter was the second-highest ever recorded for rooftop solar installations. The PM Surya Ghar: Muft Bijli Yojana (PM Surya Ghar program) remained the primary growth driver, accounting for over 77% of total installations. However, the quarter fell short of setting a new record due to implementation bottlenecks within the program, rising system costs, and a shortage of Domestic Content Requirement (DCR) compliant solar modules.
The residential segment accounted for nearly 78% of installations in Q1 2025. The industrial, commercial, and government segments accounted for approximately 16%, 6%, and 0.4% of total capacity added during the quarter.
Installations under the capital expenditure (CAPEX) model accounted for over 91% of the quarterly additions, and capacity additions under the operational expenditure or renewable energy service company (OPEX/RESCO) model accounted for about 9% of the installations in Q1 2025.
“Momentum in the residential solar segment has slowed due to implementation hurdles in the Surya Ghar program, persistent component shortages, and high system costs. Consumer expectations are not being met, whether it is cost, quality, or installation timelines. Addressing these issues is critical to unlocking the true potential of the residential solar market,” said Raj Prabhu, CEO of Mercom Capital Group.
Gujarat, Maharashtra, and Uttar Pradesh led rooftop solar capacity additions during the quarter, accounting for more than 16%, 14%, and 13%, respectively.
Rooftop solar tenders totaling 494.2 MW were issued in Q1 2025, down by over 53% quarter-over-quarter and 41% YoY.
Tenders to add rooftop solar systems on government buildings across India accounted for about 82% of tendered capacity in Q1 2025. Almost 39% of the tenders issued for government buildings fell under the PM Surya Ghar program.
In Q1 2025, rooftop solar accounted for over 18% of the total solar installations in the country.
Gujarat, Maharashtra, and Rajasthan topped the country’s cumulative installed rooftop solar capacity, accounting for over 28%, 15%, and 7%, respectively.
In Q1 2025, the average cost of a rooftop solar system increased by approximately 1% QoQ and was up by nearly 22% YoY.
India’s cumulative rooftop solar installations reached 14.9 GW at the end of Q1 2025.
Between Q1 2024 and Q1 2025, Uttar Pradesh recorded the highest compounded quarterly growth rate, exceeding 15%, followed by Madhya Pradesh and Kerala, with growth rates of over 11% and 9%, respectively. Uttar Pradesh offers an additional subsidy for rooftop solar installations and aims to achieve a 25% share in the PM Surya Ghar program, with a target of installing 2.5 million rooftop solar systems by 2027.
The top 10 states accounted for over 86% of total rooftop solar installations in Q1 2025.
The report also includes a comprehensive analysis of net metering policies in all Indian states and Union Territories.
Key Highlights from the Q1 2025 Mercom India Rooftop Solar Market Report
- In Q1 2025, India added 1.2 GW of rooftop solar capacity, up 232% YoY
- During the quarter, 78% of the installations were in the residential segment
- 91% of the quarter’s installations were in the CAPEX mode
- Cumulative rooftop solar installations reached 14.9 GW at the end of Q1 2025
- Gujarat, Maharashtra, and Uttar Pradesh led capacity additions during the quarter
