India’s Rooftop Solar Poised To Hit 25-30 GW By FY27: CareEdge

India’s rooftop solar energy capacity is projected to surge, rising from 17 GW to an estimated 25–30 GW between FY25 and FY27, according to CareEdge Research.  With a total renewable capacity of 220 GW as of FY25 and a national target of 300 GW solar capacity by 2030. Rooftop solar, particularly in the Commercial & Industrial (C&I) segment, is expected to play a pivotal role in this growth.

CareEdge Advisory Overview

“Rooftop solar installations in India have gained momentum. With the growing C&I demand backed by an improving policy ecosystem, we expect the market to reach nearly 25-30 GW over the next two years,” said Tanvi Shah, Director at CareEdge Advisory & Research.

According to the CareEdge Report, As of FY25, India’s rooftop solar capacity stood at 17.02 GW, and increasing awareness among businesses about reducing operating costs and meeting sustainability targets is fuelling adoption. Government incentives, reducing technology costs, and policy support such as net metering and PLI schemes are expected to further accelerate deployment. Overall, the FY27 projection underscores a transformative phase for India’s solar industry, setting the foundation for sustained expansion through the end of the decade.

Rooftop Solar

The report said, “The rooftop solar segment which currently holds around 20% share of India’s solar mix is gaining importance due to its distributed nature and direct consumer engagement. This is despite utility-scale solar being the dominant contributor.” The report gave a split of the average market performance in the rooftop segment.

• Residential Segment: Subsidies by the central government, state-level net metering policies, and growing electricity bills have collectively resulted in increasing traction for the residential solar segment. States like Gujarat and Maharashtra have led the way, accounting for more than 45% of total rooftop capacity due to proactive DISCOM engagement and strong state incentives.
• C&I Segment: To meet sustainability mandates and rising grid tariffs have encouraged industrial and commercial users to adopt rooftop solar. This segment continues to dominate the market with a 66% share. Payback periods of 3–5 years, falling module prices, and innovative financing models are catalysing adoption in sectors like textiles, pharmaceuticals, retail, and data centers.

State-Level Dynamics: 

According to the report, “Gujarat remains a leader due to its progressive “Surya Gujarat” program, while Maharashtra has seen strong C&I demand, especially from MSMEs and urban commercial hubs.

Other high-potential states include:

• Rajasthan: Rajasthan has strong sunlight and growing industrial needs, offering plenty of room for solar power growth.

• Tamil Nadu & Karnataka: Strong C&I base, and policy support could push capacity growth.

• Uttar Pradesh & Bihar: Recent state-level rooftop solar policies, including simplified net metering and increased subsidy awareness, are expected to drive higher residential adoption in these states