The evolving landscape of rooftop solar in India: Challenges and opportunities

India’s push for sustainable energy has gained significant momentum over the past decade, with rooftop solar (RTS) emerging as a central pillar of its clean energy strategy. When energy needs rise, cities grow, and global warming enters the picture, RTS is the answer, which is
decentralized, affordable, and scalable. To light up homes and industries or cut fossil fuel consumption, rooftop solar is charting the path to revolutionize India’s energy sector.

Why Rooftop Solar Makes a Difference

India, the biggest and most populous nation on earth, is boosting its energy requirements by leaps and bounds. Traditional sources of coal and foreign oil are environmentally damaging, economically debilitating, and drain inventories. Rooftop solar is the rational choice: it minimizes carbon footprints, promotes energy independence, and saves electricity charges for the customer.

Aside from economic and environmental gains, RTS systems also contribute to societies in the form of increased decentralized power generation, reduced transmission losses, and more resilient power-sensitive area resilience. Employment opportunities are also offered by the utilization of the industry in semi-urban and rural settings as modes of production, installation procedures, and maintenance procedures.

Current Landscape and Growth Trajectory

India commissioned 2.99 GW of rooftop solar capacity during FY 2023–24, taking installed capacity to 17.02 GW as of March 2025, as per the Ministry of New and Renewable Energy (MNRE). The journey is thrilling but still far from India’s vision to reach 40 GW by 2026 and a
cumulative solar capacity addition of 280 GW by 2030.

Incorporation of similar schemes, such as Pradhan Mantri Surya Ghar: Muft Bijli Yojana, for commissioning rooftop systems in 1 crore households, should be a major push to induction, particularly in the home market.

Challenges Facing Rooftop Solar in India

While great, the adoption of RTS in India faces a number of challenges:
● Regulatory Uncertainty: Confusing net-metering regulations, delayed clearances, and decentralized state decisions erode customer and developer confidence.
● Import Dependence: The sector relies on imported solar cells and wafers and therefore has global price trend exposure and supply chain risk.
● Limited Rooftop Availability: Unchecked rooftop conditions due to structural limitations, high population density, and communal lifestyle restrict installation possibilities in urban areas.
● Financing and Awareness: The majority of the local residents, especially rural homes, are not exposed to the benefits of solar or cannot afford low-cost financing schemes.

Prospects Of Future Growth

India’s rooftop solar market is also being fueled by some encouraging trends itself:
● Government Support: Strong policy support in the form of subsidies, DISCOM incentives, and customer journey digitization is fueling affordability and access.
● Technology Advances: The Development of high-efficiency panels, smart inverters, and energy storage upgrades is fueling the efficiency and cost-effectiveness of RTS.
● Domestic Manufacturing Push: India is building its solar value chain in the PLI scheme, from polysilicon to modules, reducing imports and developing domestic capabilities.
● Consumer Demand Growth: Individuals and companies alike are seeking to be self-sufficient and green, and thus driving rooftop solar demand.
● Upskilling: Scheme-based training programs like Suryamitra are introducing a skilled workforce to facilitate growth for the industry.

A Roadmap to Fulfill Full Potential

India’s RTS potential capacity is more than 796 GW, and only less than 2% has been tapped so far. The shortfall has to be bridged through numerous avenues:
● Rationalization of Rules: There must be a unified national policy framework with room for easy net metering and single-window permissions that can prevent drag in adoption.
● Enhanced Access to Finance: Affordable finance, solar leasing schemes, and credit availability mandates can make accessibility affordable to all sections of society.
● Scaling Up Awareness: Pilot releases in underserved markets and very targeted campaigns can be utilized to accelerate adoption and instill consumer trust.

Solar atop is not inferior technology, but above all, it’s a game-saver for India. With the appropriate combination of policy gravity, technology ingenuity, public consciousness, and financial backing, RTS can become the magic remedy to fill the energy gap, reduce the carbon footprint, and propel India towards its clean energy target.

The future is daunting yet promising. If India is committed and genuine in directing its funds to its solar panels on the rooftop, then it can not only light houses but also power villages towards an energy-independent, green nation.

Mr. Jai is a CEO at Galo Solar