India's rooftop solar additions soar 125% to record 2.7 GW in March quarter

India added a record 2.7 GW of rooftop solar capacity in the January-March quarter, marking the sector's strongest-ever quarterly performance as installations surged 125 per cent year-on-year (Y-o-Y), according to a report by Mercom India Research.

 

India's cumulative rooftop solar installations reached 23.5 GW at the end of March 2026, Mercom India stated in its Q1 2026 India Rooftop Solar Market Report.

 

The surge in rooftop solar installations was largely driven by robust residential demand under the PM Surya Ghar scheme and rapid adoption across large states, including Uttar Pradesh.

 

Maharashtra, Uttar Pradesh, Gujarat lead

 

Maharashtra, Uttar Pradesh and Gujarat led rooftop solar installations during the March quarter, accounting for more than 17 per cent, 16 per cent and 15 per cent of installations, respectively.

 

The top 10 states—Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, Kerala, Andhra Pradesh, Assam, Madhya Pradesh, Chhattisgarh, and Haryana—accounted for 80 per cent of cumulative rooftop solar installations as of March 2026.

 

In terms of cumulative installed rooftop solar capacity, Gujarat, Maharashtra, and Uttar Pradesh continued to lead, accounting for approximately 24 per cent, 16 per cent, and 9 per cent of total installations, respectively.

 

Meanwhile, Assam recorded the highest compounded quarterly growth rate at nearly 40 per cent between Q1 2025 and Q1 2026. This was followed by Uttar Pradesh and Andhra Pradesh at over 22 per cent and 18 per cent, respectively.

 

Explaining the growth in Assam, Mercom India Managing Director Priya Sanjay said the state is largely dependent on rooftop systems for solar generation because large-scale open-access projects are not feasible. She added, "The growth of rooftop solar installations in Assam was driven largely by PM Surya Ghar installations and a few government projects commissioned during the period."

 

Residential segment dominates

 

The residential segment accounted for nearly 82 per cent of the total rooftop installations in the March quarter, demonstrating the role of households in driving India's clean energy transition.

 

The industrial, commercial, and government segments followed at 11 per cent, 7 per cent, and 0.4 per cent of the quarterly additions, respectively, the report showed.

 

Installations during the quarter were driven by subsidy-backed systems, simplified approval processes, and increasing state-level implementation support under the PM Surya Ghar: Muft Bijli Yojana, the Mercom India report stated.

 

Launched in February 2024, the PM Surya Ghar: Muft Bijli Yojana aims to accelerate rooftop solar adoption among households by providing subsidies for installing solar panels. The scheme targets the installation of rooftop solar systems in 10 million homes and offers subsidies of up to Rs 78,000 for systems of up to 3 kW capacity. The government expects the scheme to help households reduce electricity bills while also boosting India's clean energy capacity.

 

Next phase of growth

 

Raj Prabhu, Chief Executive Officer of Mercom Capital Group, said factors such as quicker approvals, easier access to financing, installation quality, coordination with distribution companies (DISCOMs), and grid readiness will increasingly determine the pace at which the residential segment scales up.

 

"As rooftop solar penetration rises, improving on-ground execution and consumer experience will become critical to sustain long-term growth," he said.

 

The sector could also face near-term headwinds from the upcoming Approved List of Models and Manufacturers (ALMM) mandate for solar cells.

 

Sanjay said the new mandate is likely to affect rooftop systems in the commercial and industrial segments in the short term as the broader solar industry adjusts to domestic sourcing norms.

 

"For subsidy-linked projects, domestic content requirement-compliant and ALMM-compliant modules were already mandatory. There may be an interim impact on the rooftop solar sector as the broader solar industry adjusts to the upcoming ALMM requirement for solar cells. However, consumers may still be able to use imported modules for private, non-subsidy-linked behind-the-meter projects," she said.