India's Rooftop Solar Capacity Reaches 20.8 GW in 2025 with Strong Growth in Residential Sector

Key Facts

• India's rooftop solar capacity reached 20.8 GW by December 2025.
• 7.1 GW of rooftop solar added in 2025, marking a 123% year-on-year increase from 3.2 GW in 2024.
• The residential sector accounted for 76% of rooftop solar installations in 2025.
• The PM Surya Ghar: Muft Bijli Yojana was approved by the Union Cabinet on 29 February 2024 with a budget of ₹75,021 crore.
• The scheme aims to install rooftop solar systems in one crore households by the fiscal year 2026-27, providing up to 300 units of free electricity monthly.
• By 9 December 2025, approximately 1,945,758 rooftop solar systems were installed under this scheme, covering around 2,435,196 households.
• The states leading rooftop solar additions in 2025 were Maharashtra (16%), Gujarat (nearly 16%), and Uttar Pradesh (15%).
• The Utility-Led Aggregation model had approval for over 1.3 million rooftop solar systems as of May 2026 across 10 states and Union Territories, with deployments starting in Odisha, Andhra Pradesh, Telangana, and Dadra and Nagar Haveli and Daman and Diu.

Background & Context

Rooftop solar refers to photovoltaic systems installed on the roofs of residential, commercial, institutional, and industrial buildings to generate electricity. These systems can be connected directly to the grid or use battery storage. India's push towards rooftop solar supports its National Solar Mission and broader renewable energy goals, promoting decentralized, clean, and sustainable electricity generation.

The PM Surya Ghar: Muft Bijli Yojana is a flagship scheme designed to encourage rooftop solar adoption among households, especially targeting middle- and lower-income segments. Its financial outlay and policy framework aim to accelerate rooftop solar penetration by providing subsidies and free electricity benefits, thus reducing reliance on conventional sources and electricity bills.

Installation models in India include capital expenditure (CAPEX), which accounted for 85% of installations in 2025, and operational expenditure/renewable energy service company (OPEX/RESCO) models accounting for the rest. The government also promotes the Utility-Led Aggregation model, facilitating bulk deployment and easier implementation across multiple states.

Why This Matters for Exams

This topic illustrates India's renewable energy advancements, government interventions in the energy sector, and the significance of policy-driven sustainable development. Knowledge of key government schemes like PM Surya Ghar, installation statistics, and state-wise contributions is vital for competitive exams in general studies, environment, and economics sectors.

Points to Remember

• India's rooftop solar capacity was 20.8 GW at the end of 2025.
• There was a 123% increase in rooftop solar installations in 2025 (7.1 GW added) compared to 2024.
• The PM Surya Ghar: Muft Bijli Yojana was launched on 29 February 2024 with an outlay of ₹75,021 crore.
• The scheme targets installing rooftop solar systems in 1 crore households by FY 2026-27, providing up to 300 units of free electricity each month.
• Residential sector leads rooftop solar installations, making up 76% of additions in 2025.
• Top three states in rooftop solar additions in 2025 were Maharashtra, Gujarat, and Uttar Pradesh.
• The Utility-Led Aggregation model facilitates large-scale rooftop solar deployment across multiple states and union territories.