Residential segment leads growth, cumulative capacity reaches 16.5 GW

 India added 1.6 gigawatts (GW) of rooftop solar capacity in the second quarter (Q2) of 2025, marking a 33 per cent increase from 1,216.6 megawatts (MW) in Q1 and a 121 per cent jump from the 731 MW installed in the same quarter last year, according to Mercom India’s latest report.

Overall, rooftop solar installations in the first half (1H) of 2025 reached 2.8 GW, up more than 158 per cent year-on-year compared with 1.1 GW in 1H 2024. The growth was largely driven by the clearance of delayed registrations, commissioning of new systems, and upgrades to the PM Surya Ghar portal.

The residential segment dominated installations in Q2, contributing more than 74 per cent of additions, followed by the industrial segment at 19 per cent, the commercial segment at 6 per cent and the government sector at 0.5 per cent. The capital expenditure (CAPEX) model accounted for 88 per cent of the installations, while the operational expenditure or renewable energy service company (OPEX/RESCO) model made up the remaining 12 per cent.

Gujarat, Maharashtra, Uttar Pradesh, Kerala and Rajasthan led rooftop solar capacity additions in Q2, together accounting for 64 per cent of total installations. Assam registered the highest compounded quarterly growth rate of nearly 24 per cent between Q2 2024 and Q2 2025, followed by Uttar Pradesh at 19 per cent and Madhya Pradesh at 13 per cent.

As of June 2025, India’s cumulative installed rooftop solar capacity stood at 16.5 GW, with the top 10 states making up nearly 81 per cent of total capacity.

Rooftop solar tenders also surged, with 1,269 MW issued in Q2 2025 up 232 per cent quarter-on-quarter from 382 MW and 110 per cent year-on-year from 604 MW.

The report noted that India’s rooftop solar growth trajectory highlights strong demand momentum from households, with policy support and subsidy mechanisms continuing to play a critical role in capacity expansion.