India added 2.7 GW of rooftop solar capacity in the first quarter (Q1) of 2026, a year-over-year (YoY) growth of 125.4% from 1.2 GW and a 25.4% quarter-over-quarter (QoQ) jump from 2.2 GW, according to Mercom India Research’s newly released Q1 2026 India Rooftop Solar Market Report.

India’s cumulative rooftop solar installations reached 23.5 GW at the end of March 2026.

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

The residential segment accounted for nearly 82% of total rooftop solar installations during Q1 2026. The industrial, commercial, and government segments contributed approximately 11%, 7%, and 0.4% of the quarterly additions, respectively.

Installations under the capital expenditure model accounted for 81% of the quarter’s additions, and capacity additions under the operational expenditure or renewable energy service company/model represented approximately 19% of installations.

“The rooftop solar market maintained strong momentum in Q1 2026, driven primarily by robust residential demand under the PM Surya Ghar program. While consumer interest in rooftop solar remains strong, the next phase of growth will depend more on implementation and execution. Faster approvals, access to financing, installation quality, DISCOM coordination, and grid readiness will increasingly determine how quickly the residential segment can scale. As rooftop solar penetration rises, improving on-ground execution and consumer experience will become critical to sustain long-term growth,” said Raj Prabhu, CEO of Mercom Capital Group.

During the quarter, Maharashtra, Uttar Pradesh, and Gujarat led rooftop solar capacity installations, accounting for more than 17%, 16%, and 15% of installations, respectively.

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

The average cost of rooftop solar systems remained relatively stable across most module technologies, while systems using Chinese modules recorded a noticeable price increase.

On the impact of the upcoming Approved List of Models and Manufacturers (ALMM) mandate for solar cells, Priya Sanjay, Managing Director at Mercom India, said the requirement is likely to affect rooftop systems in the commercial and industrial segment in the short term.

“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.

The top 10 states accounted for 80% of cumulative rooftop solar installations as of March 2026.

Between Q1 2025 and Q1 2026, Assam recorded the highest compounded quarterly growth rate at nearly 40%, followed by Uttar Pradesh and Andhra Pradesh, which registered growth rates of over 22% and 18%, respectively.

Explaining the growth of rooftop solar projects in Assam, Sanjay said the state is largely dependent on rooftop systems for solar generation because large-scale open access projects are not feasible. “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.”

Rooftop solar tenders totaling 482 MW were issued in Q1 2026, a decline of over 38% QoQ while increasing nearly 32% YoY. In Q1 2026, 269 MW of rooftop solar capacity was auctioned, a 67% decline compared to Q4 2025.

The report also includes a comprehensive analysis of net metering policies in all Indian states and Union Territories.

The Q1 2026 India Rooftop Solar Market Report spans 101 slides and covers all facets of India’s rooftop solar market. For the complete report, visit: https://www.mercomindia.com/product/rooftop-solar-market-report-q1-2026