March 05th, 2025: India’s rooftop solar capacity grew to 3.2 GW in the calendar year (CY) 2024, a jump of over 86% from 1.7 GW in 2023, largely driven by record-setting residential installations, according to Mercom India Research’s newly released Q4 & Annual 2024 India Rooftop Solar Market Report.
Residential consumers accounted for 74% of installations in 2024. Industrial, commercial, and government segments accounted for around 19%, 6%, and 0.8% of total capacity added during the year.
Installations under the capital expenditure (CAPEX) model accounted for 88% of the year’s installations, and capacity additions under the operational expenditure or renewable energy service company (OPEX/RESCO) model accounted for the rest.
“The overwhelming response to the PM – Surya Ghar residential solar program is a testament to growing homeowner interest in solar adoption, making up over 72% of rooftop installations in India. However, long-term success will depend on stabilizing module costs and streamlining supply constraints to support both residential and C&I solar expansion,” said Raj Prabhu, CEO of Mercom Capital Group.
Gujarat, Maharashtra, and Kerala led rooftop solar capacity additions in 2024, accounting for almost 36%, 20%, and 9%, respectively.
Rooftop solar tenders totaling 2.8 GW were issued in 2024, up nearly 136% YoY. Tenders to add rooftop solar systems on government buildings across India accounted for over 42% of tendered capacity in 2024.
In the fourth quarter (Q4) of 2024, 1.3 GW of rooftop solar was added, up nearly 64% compared to 791.1 MW installed in Q3 2024, and an increase of over 219% compared to 406 MW in Q4 2023. Installations in Q4 surpassed all previous quarterly additions.
Installations in the residential segment under the PM – Surya Ghar program drove installations in the quarter, accounting for over 85% of capacity additions. Industrial, commercial, and government segments comprised around 10%, 4%, and 0.6% of installations during the quarter.
Gujarat, Maharashtra, and Uttar Pradesh led rooftop solar installations in Q4, accounting for around 33%, 26%, and 8%, respectively.
In Q4 2024, over 1 GW of rooftop solar tenders were announced, up more than 185% quarter-over-quarter (QoQ) compared to 364.5 MW in Q3 2024 and over 84% year-over-year (YoY) compared to 564.8 MW in Q4 2023.
In Q4 2024, average rooftop solar system costs rose over 5% QoQ and were up more than 13% YoY.
India’s cumulative rooftop solar installations reached 13.7 GW at the end of December 2024.
Gujarat remains the leading state for rooftop installations, accounting for over 29% of cumulative installations, followed by Maharashtra and Rajasthan, comprising around 15% and 7%, respectively.
The top 10 states accounted for over 80% of cumulative rooftop solar installations as of December 2024.
The report also includes a comprehensive analysis of net metering policies in all Indian states and Union Territories.
Key Highlights from the Q4 & Annual 2024 Mercom India Rooftop Solar Market Report
- In 2024, India added 3.2 GW of rooftop solar capacity, up over 86% YoY
- Residential consumers made up 74% of capacity additions in 2024, followed by industrial and commercial
- In Q4 2024, average rooftop solar system costs rose over 5% QoQ and 13% YoY
- Cumulative rooftop solar installations reached 13.7 GW as of December 2024
- Gujarat was the top state for cumulative rooftop solar installations, followed by Maharashtra and Rajasthan
The Q4 & Annual 2024 India Rooftop Solar Market Report is 79 pages and covers all facets of India’s rooftop solar market.
