Article -> Article Details

India Solar Rooftop Market size was valued at USD 5.36 Billion in 2023 and the India Solar Rooftop Market revenue is expected to reach USD 6.17 Billion by 2030, at a CAGR of 15.19 % over the forecast period.

Demand & Supply In the Market

The demand for rooftop solar systems in India is surging due to a combination of rising electricity costs, increased environmental consciousness, and government-backed incentives. Residential consumers are increasingly installing rooftop solar panels to reduce their dependency on grid electricity and lower long-term energy bills. In the commercial and industrial sectors, the drive toward sustainability, cost optimization, and compliance with ESG goals has significantly boosted demand for large-scale rooftop installations. The introduction of net metering policies and time-based electricity tariffs in many states has further incentivized consumers to adopt decentralized solar energy systems, fostering demand across both urban and semi-urban landscapes.

On the supply side, the market is witnessing rapid expansion with increased participation from domestic and international manufacturers, EPC service providers, and technology firms. India’s growing solar manufacturing base—fueled by government schemes like the Production Linked Incentive (PLI)—has enhanced local production capabilities of solar modules, inverters, and related components, helping reduce dependency on imports. Additionally, advancements in installation techniques, digital monitoring systems, and battery storage integration are enhancing the value proposition of rooftop solar systems. However, supply-side challenges such as policy uncertainty, logistics delays, and limited skilled workforce in certain regions continue to pose constraints, even as the sector scales to meet rising demand.

Get a sample of the report: https://www.maximizemarketresearch.com/request-sample/20777/

Key Market Drivers

1. Government Initiatives and Subsidies
   The Indian government has introduced several flagship programs and incentives to drive rooftop solar adoption. Notable among them is the Grid-Connected Rooftop Solar Programme (Phase-II), which provides up to 40% capital subsidy for residential consumers and additional support for institutions and social sectors. Various state governments have also introduced net metering policies, streamlined approval processes, and solar-specific mandates for new construction.
2. Rising Electricity Tariffs
   With electricity prices increasing steadily across India, solar rooftop systems provide a compelling alternative. Consumers are turning to solar as a hedge against fluctuating and escalating grid tariffs, making the investment financially attractive.
3. Advancements in Technology
   Falling prices of photovoltaic (PV) panels, improved inverter efficiency, and innovations such as solar plus storage solutions are making rooftop systems more accessible and efficient. Battery storage integration is gaining momentum, especially for areas with frequent power outages.
4. Environmental Awareness and Corporate ESG Goals
   Indian corporations are aligning with global ESG (Environmental, Social, and Governance) frameworks, pushing demand for clean energy sources. The ability to claim Renewable Energy Certificates (RECs) and participate in green energy trading is further incentivizing industrial rooftop adoption.

Market Segmentation

The India rooftop solar market can be segmented by end-user, system type, and region.

By End-User:

• Residential: Accelerating due to increased subsidies and net metering policies.
• Commercial: Gaining traction in malls, hospitals, and office complexes seeking lower operational costs.
• Industrial: The largest segment in terms of capacity, with factories and warehouses installing megawatt-scale systems.
• Institutional: Schools, colleges, and public buildings are embracing solar through government-led projects.

By System Type:

• On-Grid (Grid-Connected): Dominates the market, accounting for over 80% of installations due to ease of deployment and net metering compatibility.
• Off-Grid: Used in remote locations and small-scale setups.
• Hybrid Systems: Combining solar with battery storage, these are increasingly used in tier-2 and tier-3 cities.

By Region:

• Western India (Gujarat, Maharashtra, Rajasthan): Leading due to abundant sunlight and supportive state policies.
• Southern India (Tamil Nadu, Karnataka, Telangana): Strong growth driven by industrial and commercial hubs.
• Northern India (Delhi, Uttar Pradesh, Punjab): Increasing adoption in urban and semi-urban residential zones.
• Eastern and Northeastern India: Emerging markets with rising government focus on decentralized electrification.

Get a sample of the report: https://www.maximizemarketresearch.com/request-sample/20777/

Competitive Landscape

India's solar rooftop market is highly fragmented, with participation from domestic players, multinational corporations, and public sector undertakings (PSUs). Key players include:

• Tata Power Solar
• Adani Solar
• Vikram Solar
• Waaree Energies
• Amplus Solar
• Renew Power
• Azure Power
• Jakson Group
• Fourth Partner Energy

These companies are focusing on expanding their footprint via joint ventures, engineering-procurement-construction (EPC) services, leasing models, and performance guarantees. The market also features a growing number of startups offering digital monitoring, AI-enabled predictive maintenance, and solar-as-a-service models.

Get a sample of the report: https://www.maximizemarketresearch.com/request-sample/20777/

Key Developments

• In 2023, Tata Power Solar crossed the milestone of 1,500 MW of rooftop solar installations nationwide, marking its leadership in the segment.
• Adani Solar announced plans to establish India’s largest integrated solar manufacturing facility in Gujarat, with a focus on high-efficiency rooftop panels.
• The Ministry of New and Renewable Energy (MNRE) launched a national portal for rooftop solar to simplify the application and subsidy process for residential users.
• In 2024, the Delhi government announced subsidies for residential societies and welfare associations under its Solar City initiative.
• Several private sector banks and NBFCs (e.g., HDFC Bank, Tata Capital) have introduced low-interest green loans for rooftop installations.

Challenges to Growth

While the market outlook is robust, several hurdles persist:

1. Financing Barriers
   Despite the long-term cost savings, high upfront installation costs deter many potential customers. Delays in subsidy disbursement and limited access to affordable credit, particularly in rural areas, hinder uptake.
2. Awareness and Trust Deficit
   Many residential consumers lack awareness of the benefits, installation procedures, and savings potential of rooftop solar. Quality concerns and lack of standardized service providers also impede adoption.
3. Net Metering Roadblocks
   Inconsistent implementation of net metering regulations across states, coupled with pushbacks from local distribution companies (DISCOMs), creates bottlenecks.
4. Policy Uncertainty
   Frequent policy shifts, changes in subsidy schemes, and unclear grid integration frameworks may discourage large-scale investments from private players.

Future Outlook

The Indian rooftop solar market is at a pivotal moment. With climate imperatives becoming increasingly urgent and renewable energy targets growing more ambitious, rooftop solar is set to play a central role in India’s clean energy mix.

Growth Forecast:

• 2024-2026: Accelerated deployment in urban and peri-urban areas supported by government incentives.
• 2026-2028: Emergence of rooftop solar plus battery storage as a mainstream option.
• 2028-2031: Scaling of peer-to-peer solar energy trading, enabled by blockchain and smart grids.

Key Growth Catalysts:

• The integration of Internet of Things (IoT) and AI-based energy management systems.
• Green Building Codes mandating solar installations in commercial and residential construction.
• Expansion of third-party financing models, such as Power Purchase Agreements (PPAs) and leasings

Conclusion

India’s solar rooftop market stands at the cusp of a renewable revolution. As the country pushes to meet its target of 500 GW of non-fossil fuel energy capacity by 2030, rooftop solar will be a vital contributor. With the right mix of policy, technology, and finance, India has the potential to emerge as a global leader in decentralized solar energy.

Stakeholders across the ecosystem—government, private sector, financial institutions, and consumers—must now work in unison to scale the rooftop revolution and power India’s journey toward a greener, more sustainable future

Explore More Related Reports:

Lithium Ion Battery Market Size

Variable Frequency Drive Market Share

Global OCTG Market Trends

About Maximize Market Research:

Maximize Market Research is a multifaceted market research and consulting company with professionals from several industries. Some of the industries we cover include medical devices, pharmaceutical manufacturers, science and engineering, electronic components, industrial equipment, technology and communication, cars and automobiles, chemical products and substances, general merchandise, beverages, personal care, and automated systems. To mention a few, we provide market-verified industry estimations, technical trend analysis, crucial market research, strategic advice, competition analysis, production and demand analysis, and client impact studies.

Contact Maximize Market Research:

3rd Floor, Navale IT Park, Phase 2

Pune Bangalore Highway, Narhe,

Pune, Maharashtra 411041, India

sales@maximizemarketresearch.com  

+91 96071 95908, +91 9607365656