India’s solar energy sector is experiencing a remarkable boom, with rooftop solar installations reaching new heights. According to a recent report by Mercom India Research, the country installed an impressive 4.9 GW of rooftop solar capacity in the first half of 2025, marking a significant 30% increase compared to the same period in the previous year.
India rooftop solar Installations Surge 30%
The latest data reveals that cumulative rooftop solar installations in India have now reached a total of 30.5 GW. The first half of 2025 was particularly strong, with 4.9 GW of new capacity added, a substantial jump from the 3.8 GW installed in the first half of 2024. This growth showcases the accelerating pace of solar adoption across the nation.
In the second quarter of 2025 alone, India achieved a record-high installation of 2.5 GW of rooftop solar capacity. This represents a 5% quarter-over-quarter increase from the 2.4 GW added in Q1 2025 and an 11% year-over-year increase from the 2.3 GW installed in Q2 2024.
While the commercial and industrial (C&I) segment has historically dominated the market, accounting for 61% of capacity added in the first half of 2025, the residential sector is rapidly gaining ground. A significant portion of this growth is attributed to the government’s targeted incentives, leading to the [Rooftop Solar India: Impressive 4.9 GW Milestone Achieved](https://www.pvknowhow.com/news/rooftop-solar-india-impressive-4-9-gw-milestone-achieved/) in the residential space alone.
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Gujarat and Maharashtra Lead in India rooftop solar Installations
Geographically, a few states are paving the way for India’s rooftop solar revolution. During Q2 2025, Gujarat led the nation in installations, followed closely by Maharashtra and Rajasthan. Combined, these three states accounted for a massive 57% of India’s rooftop solar capacity additions during the quarter.
Gujarat demonstrated strong performance in both the commercial and industrial sectors, while Maharashtra emerged as the leader in residential installations. Other states like Kerala are also showing high application-to-installation conversion rates, indicating widespread and effective adoption of solar policies.
This high demand is fueled by two key factors: a 4% quarter-over-quarter decrease in rooftop solar system costs and supportive government policies. The extension of the Approved List of Models and Manufacturers (ALMM) exemption until March 2026 is expected to further sustain this momentum by ensuring a stable supply of components.
India’s Rooftop Solar Capacity Growth in India
India’s ambitious renewable energy targets have been the primary catalyst for the explosive growth in its rooftop solar sector. From just 1.3 GW in 2014, the country’s cumulative rooftop capacity has surged to over 35 GW as of July 2025.
The Indian government has implemented a suite of policies to encourage this transition. A key driver for the recent residential boom is the Pradhan Mantri Surya Ghar Yojana (PMSGY), a scheme launched in 2024. This initiative provides significant financial subsidies, which has led to a nearly fourfold increase in applications from homeowners.
Parallel to installation growth, India is also bolstering its domestic manufacturing ecosystem. In the first half of 2025, the country added a staggering 44.2 GW of solar module and 7.5 GW of cell manufacturing capacity. This push for backward integration strengthens the supply chain, reduces reliance on imports, and is a critical step towards energy independence. Understanding the [basics of solar panel manufacturing](https://www.pvknowhow.com/basics-of-solar-panel-manufacturing/) and the complete [solar panel manufacturing process](https://www.pvknowhow.com/solar-panel-manufacturing-process/) reveals the complexity and scale of this industrial expansion, with major investments being made, such as [IB Solar's Incredible 4GW Solar Cell Facility Investment in ...](https://www.pvknowhow.com/news/ib-solars-incredible-4gw-solar-cell-facility-investment-in-2025/).
India’s 2030 Solar Power Goal for India rooftop solar
These efforts are all part of India’s national target to achieve 500 GW of renewable energy capacity by 2030. As of July 2025, the country’s total installed solar capacity stands at 110 GW. This impressive figure includes 74.4 GW from large-scale solar projects, 35.4 GW from rooftop solar, and 0.2 GW from off-grid solar installations. Projects like the [Tata Power Launches 431 MW Solar Project in Madhya ...](https://www.pvknowhow.com/news/tata-power-launches-solar-project-in-mp/) are crucial contributors to the utility-scale capacity.
With an additional 47.3 GW of solar capacity already in the pipeline or tendered, India’s combined operational and upcoming capacity is over 157 GW. The scope of solar applications continues to widen, moving beyond just power generation. Innovative approaches are emerging in waste management through [solar panel recycling](https://www.pvknowhow.com/news/solar-panel-recycling-unique-process-developed-in-india/) and even in public services, where [solar energy revolutionizes healthcare in India](https://www.pvknowhow.com/news/solar-energy-floating-clinics-in-india/).
The remarkable increase in rooftop solar installations, propelled by supportive government schemes like PMSGY and declining system costs, highlights India’s unwavering commitment to its renewable energy goals. With a robust policy framework and a rapidly growing domestic manufacturing base, the country is well on its way to becoming a global solar superpower.
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