India installed 2.8 GW of rooftop solar capacity in the first half of 2025 (January–June), a 155% increase compared to the 1.1 GW added during the same period in 2024, according to Mercom India’s newly released Q2 2025 India Rooftop Solar Market Report.

Of the total installed capacity in H1 2025, 1.6 GW was commissioned in the second quarter alone, marking a 119% jump from the 731 MW deployed in Q2 2024.

Mercom India attributed the surge to the clearance of delayed registrations, commissioning of new projects, and improvements to the PM Surya Ghar portal.

Residential Segment Leads Growth

The residential sector drove rooftop solar additions in Q2 2025, contributing over 74% of total installations. The industrial segment followed with more than 19%, while commercial installations accounted for about 6% and government projects nearly 0.5%.

In terms of financing models, the capital expenditure (CAPEX) route dominated with 88% of quarterly installations. The operational expenditure/renewable energy service company (OPEX/RESCO) model accounted for around 12%.

Policy, Supply Challenges Remain

“The rooftop solar market is on track for record growth this year, with residential adoption under the PM Surya Ghar program driving nearly three-quarters of new installations. However, persistent DCR module shortages, regulatory unpredictability in some states, net metering and payment issues, threaten to slow this momentum unless addressed quickly. Policy clarity and reliable supply will be critical to sustaining growth at these levels,” said Raj Prabhu, CEO of Mercom Capital Group.

Gujarat, Maharashtra, Uttar Pradesh, Kerala, and Rajasthan emerged as the top-performing states, collectively accounting for 64% of rooftop solar capacity additions during the quarter.