India Rooftop Solar Market Outlook to 2035

The report titled “India Rooftop Solar Market Outlook to 2035 – By Consumer Segment, By System Capacity, By Installation Type, By Ownership & Business Model, and By Region” provides a comprehensive analysis of the rooftop solar photovoltaic (PV) industry in India. The report covers an overview and genesis of the market, overall market size in terms of installed capacity and value, detailed market segmentation; trends and developments, regulatory and policy landscape, buyer-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players in the India rooftop solar market. The report concludes with future market projections based on electricity demand growth, grid reliability concerns, tariff inflation, decentralization of power generation, government subsidy frameworks, regional demand drivers, cause-and-effect relationships, and case-based illustrations highlighting the major opportunities and cautions shaping the market through 2035.

India Rooftop Solar Market Overview and Size

The India rooftop solar market is valued at approximately ~USD ~ billion, representing the cumulative deployment of grid-connected rooftop solar photovoltaic systems across residential, commercial, industrial, and institutional consumers. These systems typically comprise solar PV modules, inverters, mounting structures, balance-of-system components, and grid interconnection equipment, installed on building rooftops to generate electricity for on-site consumption with optional net metering or gross metering arrangements.

The market is anchored by India’s rapidly rising electricity demand, persistent grid reliability challenges in several states, rising commercial and industrial power tariffs, and strong policy emphasis on distributed renewable energy under the national clean energy transition agenda. Rooftop solar adoption is driven by the dual objective of cost savings and energy security, particularly for commercial and industrial consumers with high daytime power consumption and long operating hours.

Industrial and commercial rooftops account for the majority of installed capacity due to their larger roof areas, higher load profiles, and stronger financial viability compared to residential systems. Manufacturing facilities, warehouses, logistics parks, IT parks, malls, hospitals, educational institutions, and large office buildings form the core demand base. Residential rooftop solar remains underpenetrated but is gradually expanding, supported by capital subsidies, simplified net-metering policies in select states, and increasing consumer awareness of long-term electricity cost savings.

Regionally, western and southern India represent the largest rooftop solar demand centers. States such as Gujarat, Maharashtra, Rajasthan, Tamil Nadu, and Karnataka lead adoption due to higher solar irradiance, proactive state-level policies, industrial concentration, and relatively mature discom frameworks for rooftop integration. Northern India shows steady growth driven by commercial establishments, government buildings, and institutional consumers, while eastern and northeastern regions remain underdeveloped due to weaker policy implementation, lower rooftop suitability in dense urban areas, and grid integration challenges.

What Factors are Leading to the Growth of the India Rooftop Solar Market:

Rising commercial and industrial electricity tariffs strengthen the economic case for rooftop solar: Electricity tariffs for commercial and industrial consumers in India have increased steadily over the past decade, driven by cross-subsidization of residential and agricultural users, fuel cost pass-throughs, and state discom financial pressures. Rooftop solar enables C&I consumers to offset a significant portion of daytime electricity consumption at a levelized cost that is materially lower than grid tariffs. For large industrial users, rooftop solar also reduces exposure to demand charges and peak tariffs, improving long-term energy cost predictability. This tariff arbitrage remains one of the strongest drivers of rooftop solar adoption in India.

Government policy support and national renewable energy targets accelerate deployment: India’s commitment to expanding renewable energy capacity, including a strong push for distributed generation, has resulted in multiple policy initiatives supporting rooftop solar. Central schemes such as capital subsidies for residential consumers, incentives for government and institutional buildings, and simplified approval processes have lowered entry barriers. Several states have implemented net-metering and gross-metering frameworks, enabling consumers to monetize surplus generation. Public-sector mandates for rooftop solar installations on government buildings, railways, airports, and educational institutions further contribute to baseline demand.

Energy security and grid reliability concerns increase buyer interest in on-site generation: Power quality issues, voltage fluctuations, and unplanned outages remain common in several industrial clusters and commercial zones across India. Rooftop solar, often combined with diesel generators or emerging battery storage solutions, enhances energy security by reducing dependence on grid supply during peak demand periods. For manufacturing units, data centers, hospitals, and IT parks, uninterrupted power availability is mission-critical, making rooftop solar an increasingly strategic infrastructure investment rather than a purely cost-driven decision.

Which Industry Challenges Have Impacted the Growth of the India Rooftop Solar Market:

Policy uncertainty, frequent net-metering revisions, and state-level inconsistencies impact investment confidence: While rooftop solar is supported at the national level, implementation is largely governed by state electricity regulatory commissions and distribution companies. Frequent revisions to net-metering caps, transitions to gross metering for larger systems, delays in approvals, and retrospective changes in compensation mechanisms create uncertainty for consumers and developers. These inconsistencies reduce long-term revenue visibility, particularly for commercial and industrial users evaluating rooftop solar as a multi-decade infrastructure investment. In states where discoms perceive rooftop solar as a revenue threat, procedural delays and restrictive interpretations further slow adoption.

Discom financial stress and approval bottlenecks constrain grid integration and project timelines: Many state-owned distribution companies face persistent financial stress, leading to cautious or restrictive approaches toward rooftop solar interconnection. Lengthy approval cycles, delays in meter installation, transformer capacity constraints, and limited responsiveness from local utility offices increase project execution risk. These bottlenecks extend commissioning timelines and increase working capital requirements for developers, particularly in the residential and small commercial segments where transaction sizes are smaller but procedural complexity remains high.

Upfront capital costs and financing access limitations slow residential adoption: Although rooftop solar delivers long-term savings, the upfront capital requirement remains a key barrier for residential consumers and small enterprises. Access to affordable financing, standardized loan products, and simple repayment mechanisms remains uneven across regions. Limited consumer awareness of total lifecycle economics, coupled with concerns around roof ownership, building age, and resale implications, further slows decision-making. While subsidy schemes exist, delays in disbursement and procedural complexity reduce their effectiveness as adoption catalysts.

What are the Regulations and Initiatives which have Governed the Market:

National rooftop solar programs and capacity targets shaping baseline demand creation: India’s rooftop solar market is governed by national renewable energy policies that promote distributed generation as a core pillar of the energy transition. Central government schemes supporting residential rooftop installations through capital subsidies, as well as mandates for solar adoption on government buildings and public infrastructure, create baseline demand visibility. These initiatives aim to reduce grid load, lower transmission losses, and expand clean energy access in urban and semi-urban areas.

Net metering, gross metering, and grid interconnection regulations defining project economics: State-level regulations governing net metering, gross metering, and hybrid compensation models directly influence rooftop solar project viability. Parameters such as system size eligibility, export compensation rates, banking provisions, and settlement cycles shape payback periods and internal rates of return. Changes in these frameworks—particularly caps on net-metering eligibility for larger commercial systems—have a material impact on adoption patterns across consumer segments and regions.

Building regulations, electrical safety standards, and technical compliance requirements: Rooftop solar installations must comply with electrical safety codes, grid synchronization standards, fire safety guidelines, and structural load considerations. Technical requirements related to inverter certification, protection systems, earthing, and isolation mechanisms are designed to ensure grid stability and occupant safety. In dense urban environments and commercial complexes, additional approvals related to fire clearance, rooftop access, and building management consent can extend approval timelines and add coordination complexity.

India Rooftop Solar Market Segmentation

By Consumer Segment: The commercial and industrial (C&I) segment holds dominance in the India rooftop solar market. This is because industrial plants, warehouses, IT parks, hospitals, malls, and large office buildings exhibit high daytime electricity consumption, stable load profiles, and strong tariff arbitrage opportunities. These consumers benefit most from rooftop solar due to higher grid tariffs, predictable power usage, and sufficient rooftop availability. While residential rooftop solar adoption is increasing with subsidy support and simplified processes, the C&I segment continues to drive capacity additions due to superior project economics, scale efficiencies, and faster decision-making cycles.

Commercial & Industrial (Factories, Warehouses, IT Parks, Malls, Hospitals)  ~70 %
Residential (Individual Homes & Housing Societies)  ~20 %
Institutional & Government Buildings (Schools, Colleges, Railways, PSUs)  ~10 %

By System Capacity: Mid-to-large capacity rooftop systems dominate the market as they are primarily deployed by commercial and industrial users seeking meaningful electricity cost reduction and demand charge optimization. Systems above 100 kW offer better cost per watt economics, higher EPC efficiency, and improved payback periods. Small residential systems remain fragmented and are influenced by roof size, consumer awareness, and subsidy disbursement timelines.

Up to 10 kW  ~15 %
10–100 kW  ~25 %
100 kW – 1 MW  ~40 %
Above 1 MW  ~20 %

Competitive Landscape in India Rooftop Solar Market

The India rooftop solar market is moderately fragmented, characterized by a mix of large national EPC players, renewable energy developers, power utilities, and a long tail of regional and local installers. Market leadership is influenced by execution capability, regulatory navigation strength, financing partnerships, quality of components, and after-sales service reliability. While large EPC players dominate multi-megawatt commercial and industrial projects and government tenders, regional installers remain competitive in residential and small commercial segments by leveraging local relationships and faster on-ground execution.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

Tata Power Solar: As one of the most established players in India’s rooftop solar ecosystem, Tata Power Solar benefits from strong brand credibility, integrated EPC capabilities, and access to utility-scale experience. The company remains particularly strong in government, institutional, and large commercial rooftop projects where execution reliability, compliance, and long-term service support are critical procurement criteria.

Adani Solar: Adani Solar leverages its vertically integrated manufacturing capabilities and association with the broader Adani Group to compete across large rooftop and captive solar projects. Its competitive strength lies in module availability, large-project execution experience, and the ability to support clients with long-term energy transition strategies, particularly in industrial and infrastructure-linked demand.

Waaree Energies: Waaree Energies continues to strengthen its rooftop solar presence by combining large-scale module manufacturing with EPC execution across residential, commercial, and industrial segments. The company benefits from a wide installer network, product availability, and increasing emphasis on quality assurance and standardized system designs.

Amplus Solar: Amplus Solar is a leading OPEX-focused rooftop solar developer, primarily serving commercial and industrial clients seeking long-term power purchase agreements without upfront capital investment. Its positioning is strong among multinational corporations, industrial parks, and logistics facilities with multi-location portfolios and ESG-driven energy procurement strategies.

Fourth Partner Energy: Fourth Partner Energy differentiates itself through data-driven project design, asset management capabilities, and long-term energy service contracts. The company continues to scale its rooftop and distributed solar portfolio across industrial clusters, IT parks, and commercial campuses where performance transparency and lifecycle optimization matter.

What Lies Ahead for India Rooftop Solar Market?

The India rooftop solar market is expected to expand steadily through 2035, supported by sustained growth in electricity demand, rising grid tariffs for commercial and industrial consumers, increasing emphasis on energy security, and strong national commitments toward renewable energy expansion. Growth momentum is further reinforced by policy-driven decentralization of power generation, urban infrastructure expansion, corporate sustainability mandates, and increasing awareness of lifecycle energy cost optimization. As businesses and institutions increasingly seek predictable energy costs and partial independence from grid volatility, rooftop solar will remain a core distributed energy solution across urban and industrial India.

Transition Toward Larger, Performance-Optimized Rooftop Systems in Commercial and Industrial Segments: The future of India’s rooftop solar market will see a continued shift from small, fragmented installations toward larger, performance-optimized systems designed around specific consumption profiles. Commercial and industrial buyers are increasingly demanding systems engineered for higher generation density, better inverter optimization, and improved uptime. Warehouses, manufacturing plants, IT parks, hospitals, and logistics facilities will prioritize rooftop solar systems integrated with load management strategies, demand charge reduction, and, selectively, battery storage. Providers capable of delivering customized, high-performance rooftop solutions aligned with operational realities will capture higher-value demand.

Growing Adoption of OPEX and Long-Term Energy Service Models: As rooftop solar matures, there will be increasing adoption of OPEX, RESCO, and long-term power purchase agreement models, particularly among capital-conscious commercial and industrial consumers. These models reduce upfront investment requirements while offering predictable long-term electricity pricing. Through 2035, this trend will strengthen the role of developers with strong balance sheets, access to low-cost financing, and asset management capabilities. Multi-site corporate clients and ESG-driven enterprises are expected to increasingly prefer standardized rooftop solar rollouts across facilities under unified energy service contracts.

Integration of Rooftop Solar with Storage, EV Infrastructure, and Energy Management Systems: Rooftop solar installations will increasingly be designed as part of broader on-site energy ecosystems. Integration with battery storage, electric vehicle charging infrastructure, and digital energy management platforms will become more common, particularly in commercial campuses, industrial parks, and residential societies. These integrations enhance self-consumption, improve resilience during grid outages, and support peak load management. Providers offering integrated solutions rather than standalone solar installations will be better positioned to serve evolving buyer expectations.

Greater Emphasis on Regulatory Stability, Compliance, and Grid Compatibility: As rooftop penetration increases, regulatory focus will intensify on grid stability, safety standards, and compliance. Improved clarity around net-metering frameworks, technical standards, and interconnection protocols will be critical to sustaining market confidence. Over time, states with consistent policies, faster approvals, and supportive discom engagement are expected to attract disproportionate rooftop solar investment. Market participants with strong regulatory navigation capabilities and utility relationships will gain execution advantages.

India Rooftop Solar Market Segmentation

By Consumer Segment

• Commercial & Industrial (Factories, Warehouses, IT Parks, Hospitals, Malls)
• Residential (Individual Homes & Housing Societies)
• Institutional & Government Buildings (Schools, Colleges, PSUs, Railways)

By System Capacity

• Up to 10 kW
• 10–100 kW
• 100 kW – 1 MW
• Above 1 MW

By Installation Type

• Grid-Connected Rooftop Solar
• Rooftop Solar with Battery Storage
• Hybrid Systems (Solar + DG / Grid)

By Ownership & Business Model

• CAPEX (Customer-Owned)
• OPEX / RESCO (Third-Party Owned)
• Hybrid / Shared Models

By Region

• North India
• West India
• South India
• East & Northeast India

Players Mentioned in the Report:

• Tata Power Solar
• Adani Solar
• Waaree Energies
• Vikram Solar
• Amplus Solar
• Fourth Partner Energy
• CleanMax
• Azure Power
• Havells Solar
• Regional EPC contractors and rooftop solar installers

Key Target Audience

• Rooftop solar EPC companies and developers
• Commercial and industrial power consumers
• Manufacturing companies and logistics operators
• Real estate developers and industrial park operators
• Residential housing societies and RWAs
• Government bodies and public sector institutions
• Financial institutions and renewable energy investors
• Energy management and sustainability consulting firms

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2035