India installed 1.9 GW of rooftop solar capacity in the first nine months (9M) of 2024, exceeding both the annual and 9M additions of all previous years.

The period saw a nearly 45% year-over-year (YoY) increase from the 1.3 GW installed in 9M 2023, according to Mercom India’s Q3 2024 India Rooftop Solar Market Report.

Priya Sanjay, Managing Director, Mercom India, said, “The surge in rooftop solar capacity can be largely attributed to the growth in residential installations under the PM Surya Ghar program. The processes for residential installations have finally been streamlined after a long time. Currently, the only major challenge is module availability due to the requirement of DCR-compliant modules.”

The PM Surya Ghar program, which aims to install rooftop solar systems in 10 million households by 2026-27, contributed nearly 85% of the quarter’s total additions. The industrial segment accounted for 12%, while the commercial and government segments contributed just over 2% and nearly 1%, respectively.

In Q3 2024, India added 791.1 MW of rooftop solar capacity, marking the highest quarterly installations on record. This represented an over 8% increase quarter-over-quarter (QoQ) from 731 MW and an 84% YoY rise from 431 MW.

Nearly 89% of the capacity additions in Q3 2024 were installed under the capital expenditure (CAPEX) model.

Gujarat dominated rooftop solar capacity additions in Q3 2024, contributing over 42% of the installations. Maharashtra followed with 18%, while Uttar Pradesh secured the third spot, accounting for 9% of the quarter’s total capacity additions.

Sanjay said, “Gujarat was proactive in rooftop solar even before the PM Surya Ghar program, leveraging the state’s initiatives. Its business-like approach to running DISCOMs, akin to private operators, focuses on reducing subsidized customer segments like residential and agricultural. By doing so, the state is able to lower cross-subsidies, making commercial and industrial tariffs more competitive.”

As of September 2024, India’s cumulative rooftop solar capacity reached 12.4 GW. Gujarat, Maharashtra, and Rajasthan led in total installations, contributing 29%, 14%, and 7% of the national capacity, respectively.

Kerala recorded the highest compounded quarterly growth rate, exceeding 8% between Q3 2023 and Q3 2024.

In Q3 2024, 371.1 MW of rooftop solar tenders were announced, down 30% compared to 533.6 MW in Q2 2024, but a significant increase of 211% from 119.3 MW in Q3 2023.

The average cost of rooftop solar systems rose by 2% QoQ but declined by 3% YoY.

The Q3 2024 Mercom India Rooftop Solar Report is 68 pages long and covers all facets of India’s rooftop solar market. For the complete report, visit: https://www.mercomindia.com/product/rooftop-solar-market-report-q3-2024