India Adds 2.7 GW of Rooftop Solar in Q1 2026

India installed 2.7 GW of new rooftop solar capacity in the first quarter of 2026, according to the latest report from Mercom India Research. The figure represents a significant increase from 2.2 GW in the previous quarter and 1.2 GW recorded in the first quarter of 2025. 

The strong growth was largely driven by the government's PM Surya Ghar initiative, which has accelerated residential rooftop solar adoption across the country. Supportive subsidy programs, simplified approval procedures, and stronger implementation efforts at the state level also contributed to market expansion. 

Residential installations accounted for 82% of all rooftop solar capacity added during the quarter, highlighting the growing popularity of rooftop systems among homeowners. The industrial sector contributed approximately 11% of new installations, while the commercial and government segments accounted for around 7% and 0.4%, respectively. 

From a financing perspective, the majority of projects were deployed under the capital expenditure (CAPEX) model, which represented about 81% of installations. The remaining 19% were installed through operational expenditure (OPEX) and Renewable Energy Service Company (RESCO) models. 

According to Raj Prabhu, CEO of Mercom Capital Group, the rooftop solar market maintained strong momentum in the first quarter, supported by robust residential demand under the PM Surya Ghar program. He noted that while consumer interest remains high, future growth will increasingly depend on efficient execution, including faster approvals, improved financing access, installation quality, utility coordination, and grid readiness. 

India's rooftop solar installations grew 25% quarter-over-quarter and 125% year-over-year in Q1 2026, demonstrating the rapid acceleration of the country's distributed solar market. 

At the state level, Maharashtra, Uttar Pradesh, and Gujarat led new rooftop solar installations during the quarter, accounting for 17%, 16%, and 15% of total additions, respectively. 

By the end of March 2026, India's cumulative rooftop solar capacity reached 23.5 GW, with Gujarat continuing to lead the market by holding 24% of the nation's total installed rooftop solar capacity. Maharashtra and Uttar Pradesh followed with shares of 16% and 9%, respectively. 

Mercom also reported that average rooftop solar system costs remained relatively stable across most module technologies during the quarter. However, systems using Chinese-manufactured solar modules experienced a more noticeable increase in pricing. 

With strong policy support and rising residential demand, India's rooftop solar sector continues to play a key role in the country's renewable energy transition and distributed generation growth.