Aurangabad, Amravati and Bhopal lead residential installations as tariff hikes and festive demand reshape household energy choices

India’s residential rooftop solar market is witnessing a structural shift, with tier 2 cities outpacing metropolitan centres by up to five times in new installations, according to installation data released by SolarSquare. The trend signals a broader change in household energy behaviour, driven by rising electricity tariffs, improving financing access and growing confidence in solar as a long-term household asset.

SolarSquare’s 2025 data shows cities such as Aurangabad, Amravati and Bhopal recording significantly higher rooftop solar adoption than metros like Bengaluru. Aurangabad alone crossed 14,500 residential installations during the year, while Amravati exceeded 10,000, placing Maharashtra among the country’s leading rooftop solar markets.

Festive Demand, Stable Seasonality
The data also suggests that seasonal volatility in rooftop solar demand is easing. Traditionally, installation activity has slowed during the monsoon months due to logistical challenges and deferred household decisions. However, SolarSquare noted that demand between June and August remained largely stable in 2025, particularly in tier 2 markets. Improved execution capabilities and better planning appear to be reducing weather-related disruptions, indicating a maturing market.

Festive months, meanwhile, are emerging as a key decision window for rooftop solar adoption. Installations rose by 20 to 40 per cent during October and November across SolarSquare’s operating markets, reversing the earlier perception of the festive period as a low-intent phase for large home investments. The company said households are increasingly directing festive spending towards energy assets that offer predictable savings and insulation from rising power bills.

Tariff Hikes Drive Adoption
SolarSquare’s data also points to a strong link between electricity tariff hikes and rooftop solar demand. Installations surged by 25 to 50 per cent between September and November, closely tracking periods of higher electricity costs. This trend was particularly pronounced in Maharashtra, which has emerged as the company’s highest-adoption region.

Commenting on the findings, Shreya Mishra, Co-founder and Chief Executive Officer, SolarSquare, said, “India’s rooftop solar market is evolving as households prioritise reliability, long-term savings and energy independence in their power choices.”

Taken together, the shifts indicate that India’s residential rooftop solar market is becoming more predictable, geographically diversified and closely tied to household energy economics. Tier 2 cities are expected to play a central role in driving the next phase of growth, as rooftop solar moves from an early-adoption phase to a mainstream household decision.