New Delhi: India’s rooftop solar sector witnessed unprecedented growth in 2025, adding a record 4.9 gigawatts (GW) of capacity in the first nine months (9M) of the calendar year, according to Mercom India’s Q3 2025 Rooftop Solar Market Report. This marks a 161% year-on-year (YoY) increase compared to 1.9 GW installed in 9M 2024.
In Q3 2025 alone, rooftop solar installations surged to 2.1 GW, the highest quarterly addition to date. This represents a 29% quarter-on-quarter (QoQ) rise from 1.6 GW in Q2 2025 and a 164% YoY jump from 791.1 MW in Q3 2024.
PM Surya Ghar Drives Growth
The PM Surya Ghar initiative remained the dominant force behind this expansion, contributing 73% of rooftop installations in Q3 2025. Residential installations now account for 75% of the market, compared to just one-third three years ago. Raj Prabhu, CEO of Mercom Capital Group, emphasized that while awareness is driving adoption, quality control and supply chain challenges must be addressed to sustain momentum.
Segment-Wise Performance
- Industrial segment: 20% of Q3 installations
- Commercial segment: 6%
- Government segment: 1%+
- CAPEX model: 84% of installations
State-Wise Leaders
- Uttar Pradesh led Q3 2025 with 16% share of installations.
- Maharashtra and Gujarat followed with 15%+ and 14%, respectively.
- The top 10 states contributed over 80% of total installations.
- For 9M 2025, Gujarat led nationally with 16% share, followed by Maharashtra (16%) and Rajasthan (15%).
- Assam recorded the highest compounded quarterly growth rate at 35% YoY.
Policy & Market Activity
- Cumulative rooftop solar capacity: 18.6 GW as of September 2025
- Tenders issued in Q3 2025: 1.5 GW (up 19% QoQ, 311% YoY)
- Auctions: 6 MW (down 87% QoQ, up 200% YoY)
Mercom’s 120-page report also provides a comprehensive analysis of net metering policies across all Indian states and union territories, highlighting regulatory frameworks shaping the rooftop solar landscape.
