According to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research, India installed 4.9 gigawatts (GW) of residential rooftop solar capacity in the first half of 2025.
The surge in rooftop solar installations is driven by the government’s “Pradhan Mantri Surya Ghar Yojana” (PMSGY) scheme, launched in 2024. Under the scheme, government subsidies disbursed have exceeded INR 92,800 crore (approximately USD 1.05 billion).
Applications for residential rooftop solar systems surged nearly fourfold, reaching over 5.79 million between March 2024 and July 2025.
However, not all applications translate into installed projects. The report highlights a “conversion rate” – the percentage of applications that result in successfully deployed systems. Gujarat and Kerala were the most successful in converting applications into installations, with conversion rates exceeding 65%.
The ratio of applications to successful installations varies significantly across India.
Furthermore, several states – including Assam, Delhi, Goa, Uttar Pradesh, and Uttarakhand – offer direct capital subsidies to offset high upfront costs.
Under PMSGY, Gujarat leads with 1,491 MW of installed residential rooftop solar capacity, followed by Maharashtra, Uttar Pradesh, Kerala, and Rajasthan. Together, these states account for approximately 77.2% of the 4.9 GW installed under the scheme.
However, as of July 2025, only 13.1% of the target of 10 million installations had been completed, and only 14.1% of the allocated INR 65,700 crore (approximately USD 7.5 billion) in subsidies had been disbursed. In fact, the national conversion rate for applications under the PMSGY scheme was just 22.7% as of July 2025, underscoring the challenge in translating demand into actual rooftop solar capacity.
In this context, achieving the broader “Rooftop Solar Programme” target of 30 GW of cumulative rooftop solar capacity by 2027 remains a significant challenge. The report notes that deployment efforts continue to be hampered by low financing awareness, cumbersome loan procedures, technical glitches in complaint systems, and a fragmented supply chain.
Aman Gupta of JMK Research recommended establishing a district-level escalation system under the PMSGY to address issues like subsidy delays, data errors, and portal problems. A standardized plug-and-play solar kit could address inconsistent quality and speed up installation. The report concludes that the success of the PMSGY scheme depends on streamlined digital processes, standardized products, and robust consumer support.
