India’s rooftop solar energy capacity is projected to rise significantly from 17 GW in FY25 to an estimated 25–30 GW by FY27, according to a report released on Tuesday by CareEdge Ratings. The sharp expansion is driven by India’s clean energy ambitions, with solar power forming a critical component of the nation’s broader energy transition strategy.

With a current total renewable energy capacity of 220 GW and a target of reaching 300 GW of solar capacity by 2030, rooftop solar—particularly within the commercial and industrial (C&I) sectors—is expected to emerge as a key growth engine. The report notes that growing awareness among businesses about cost savings and the need to meet sustainability goals is fuelling the uptake of rooftop solar solutions.

As of FY25, rooftop solar capacity stands at 17.02 GW. The sector is benefiting from a confluence of supportive factors, including government incentives, favourable policies like net metering and the Production-Linked Incentive (PLI) scheme, and the declining cost of solar technology.

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“This surge in rooftop solar installations reflects the growing demand from the C&I sector, coupled with an enabling policy framework. We anticipate the market to touch 25–30 GW over the next two years,” said Tanvi Shah, Director at CareEdge Advisory and Research.

A major boost is expected from the PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar panels in 1 crore households with subsidies up to ₹78,000. The scheme not only reduces electricity costs for low and middle-income families but is also poised to generate nearly 17 lakh jobs, enhancing the solar value chain and creating a multiplier effect across the economy.

The report indicates that rooftop solar is entering a transformative phase in India’s energy landscape, laying the groundwork for sustained growth through the end of the decade.

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