Politics · India Bureau
India's rooftop solar sector eyes 15 GW demand amid 132 GW untapped potential
Industry analysis suggests India's residential solar market could surge significantly in coming years, with government subsidies catalysing installations. However, experts warn that policy stability beyond 2027 will be essential to maintain momentum in both demand and manufacturing.
LSN India ·
India's rooftop solar segment is positioned for substantial growth, with the Indian Solar Manufacturers Association identifying a cumulative potential of 132 gigawatts across residential and commercial installations nationwide.
Current demand trajectories suggest the market could reach approximately 15 GW in annual capacity additions, driven largely by the government's PM Surya Ghar scheme, which offers financial incentives for rooftop solar installations. The subsidy programme has proven effective in spurring adoption among Indian households and small businesses seeking to reduce electricity costs.
However, sustained growth remains contingent on policy continuity beyond March 2027, when current subsidy provisions are scheduled to conclude. Industry stakeholders emphasise that predictable, long-term policy frameworks are crucial for attracting investment in manufacturing infrastructure and maintaining consumer confidence in the sector.
The rooftop solar market's expansion reflects India's broader push toward renewable energy capacity addition and energy independence. Manufacturing investment decisions hinge on assurances regarding future government support, with industry bodies advocating for extended or renewal schemes to bridge the gap between current subsidised installations and a self-sustaining market ecosystem.
As India pursues its ambitious renewable energy targets, the residential solar segment represents a critical component of distributed generation capacity, offering both economic and environmental benefits at the household level.