India installed 3.2 GW of rooftop solar capacity in 2024, an 86% increase from 2023, according to Mercom India Research’s newly released Q4 & Annual 2024 India Rooftop Solar Market Report.  

The capacity additions were mainly driven by the record commissioning of rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana.

Consumers in the residential segment benefitted from the PM Surya Ghar program, accounting for 74% of the installations in 2024. Industrial, commercial, and government segments contributed 19%, 6%, and 0.8% to the total capacity added during the year.

Installations under the capital expenditure (CAPEX) model comprised 88% of the year’s installations, and capacity additions under the operational expenditure or renewable energy service company (OPEX/RESCO) model accounted for the rest.

“The overwhelming response to the PM Surya Ghar residential solar program is a testament to growing homeowner interest in solar adoption, making up over 72%  of rooftop installations in India. However, long-term success will depend on stabilizing module costs and streamlining supply constraints to support both residential and C&I solar expansion,” said Raj Prabhu, CEO of Mercom Capital Group.

Gujarat led the rooftop solar capacity additions in 2024, with 36% of the total installations, followed by Maharashtra, with 20%, and Kerala, adding 9%.

India’s cumulative rooftop solar installations reached 13.7 GW at the end of December 2024.

During the year, 2.8 GW of rooftop solar tenders were released, marking a increase year-over-year (YoY).

Over 43% of this capacity came from tenders aimed at installing rooftop solar systems on government buildings throughout India.

In the fourth quarter (Q4) of 2024, India added 1.3 GW of rooftop solar, a 64% quarter-over-quarter increase from 791.1 MW. The installations in Q4 surpassed all previous quarterly additions to date.

Installations in the residential segment under the PM Surya Ghar program drove capacity additions in the quarter, accounting for over 85% of the capacity additions. Capacity additions under the CAPEX model accounted for over 95% of the quarter’s installations.

Priya Sanjay, Managing Director, Mercom India, said, “In previous quarters, C&I consumers were holding back on installations waiting for clarity on the exemption from ALMM. With better clarity, they are now focusing on procuring modules and building the projects.”

State-wise installations

Gujarat, Maharashtra, and Uttar Pradesh led rooftop solar installations in Q4, accounting for around 33%, 26%, and 8%, respectively.

“Gujarat has always been rigorous in eliminating two subsidized consumers – residential and farmers. Gujarat’s DISCOMs are making residential consumers independent by setting up rooftop solar projects and solar pumps for the farmers. That explains why the state has been leading the installations,” Sanjay said.

She anticipates Gujarat continuing its growth in the upcoming quarters as well.

The PM Surya Ghar program installations significantly boosted capacity this quarter, accounting for more than 85% of total additions. The industrial, commercial, and government sectors contributed 10%, 4%, and 0.6% to the quarter’s installations.

Under the CAPEX model, capacity additions accounted for over 95% of the quarter’s installations.  In all, over 1 GW of tenders were announced, over 185% QoQ increase from 364.5 MW and more than 84% YoY from 564.8 MW.

Gujarat remains the leading state, accounting for over 29% of cumulative rooftop solar installations, followed by Maharashtra and Rajasthan, comprising around 15% and 7%, respectively.

The top 10 states accounted for over 80% of cumulative rooftop solar installations as of December 2024.

The Q4 & Annual 2024 India Rooftop Solar Market Report is 79 pages and covers all facets of India’s rooftop solar market. For the complete report, visit: https://www.mercomindia.com/product/rooftop-solar-market-report-q4-2024