India added a record 4.9 GW of rooftop solar capacity during the first nine months (9M) of the calendar year (CY) 2025, a 161% year-over-year (YoY) increase, according to Mercom India’s Q3 2025 India Rooftop Solar Market Report. The government’s accelerated push to meet the PM Surya Ghar Muft Bijli Yojana target of 2 million residential rooftop installations by October 2025 was the key driver of growth, with the milestone achieved ahead of schedule in September 2025.

India’s cumulative rooftop solar capacity was 18.6 GW at the end of September 2025.

Here’s a look at the top five states for rooftop solar capacity additions in 9M 2025. Rajasthan has made it to the list of top five performers this year, replacing Tamil Nadu.

#1 Gujarat retained the top position for the largest number of rooftop solar installations in 9M 2025. The state accounted for 16.2% of the total installed capacity during the period, a 10.8% YoY increase.

The state bounced back strongly from a slowdown in Q1 2025, mainly due to glitches on the PM Surya Ghar portal. About 83% of the 9M additions in Gujarat came under the PM Surya Ghar (PMSG) program. The state also leads in cumulative installed capacity and is home to nearly 26% of the country’s rooftop solar installations.

#2 Maharashtra ranked second, contributing 15.6% of the total installed capacity, increasing 162.3% from the same period the previous year. Of the installations in 9M, 81% was under the PMSG program.

Between Q3 2024 and Q3 2025, Maharashtra recorded a compounded quarterly growth rate of 10.6%, second only to Gujarat.

The growth has been driven by commercial and industrial demand, rising power tariffs, and increasing interest from businesses seeking long-term cost savings and sustainability benefits.

#3 Uttar Pradesh moved up the list from fourth to third as installations rose 480% YoY and accounted for 14.6% of the total capacity added during the period.

This surge was fueled by rising industrial rooftop solar adoption and the introduction of an additional state subsidy of up to ₹30,000 for installations under the PM Surya Ghar program.

The combination of central and state incentives has significantly improved the affordability of rooftop solar for residential consumers, while industrial users increasingly view rooftop systems as a hedge against rising electricity costs. Over 86% of the installations in 9M were under the PMSG program.

#4 Kerala moved down the list from third to fourth rank, accounting for 8.4% of the total installations. The growth in capacity additions was 105.2% from the previous year.

The state’s drop to the fourth position was primarily due to uncertainty created by draft regulations issued by the Kerala State Electricity Regulatory Commission, which temporarily affected consumer sentiment under the PM Surya Ghar program. Even with these challenges, Kerala maintained steady growth, supported by high electricity tariffs, limited land availability, and strong consumer awareness of the benefits of rooftop solar. The residential segment contributed a whopping 95% to total installations.

#5 Rajasthan climbed to the fifth rank from eighth the previous year, as installations rose 490.5% YoY. The state’s contribution to the total capacity added during the period in the country was 7.7%.

Rajasthan continued to see robust rooftop solar adoption, driven by additional incentives for residential consumers. Households installing rooftop systems under PM Surya Ghar receive an additional 50 units of free electricity on top of the existing 100, making rooftop solar highly attractive. Of the total installations in 9M, about 74% were in the residential segment.

Alongside strong residential participation, growth in the C&I sector remained resilient, as businesses increasingly adopted rooftop solar to reduce power bills and advance their sustainability commitments.

Among states other than the top five, Assam stood out, recording the highest compounded quarterly growth rate of 35.3% from Q3 2024 to Q3 2025. Assam is actively implementing the PM Surya Ghar program. It has approved a tariff of ₹4.37/kWh for rooftop solar on government buildings under the RESCO model.