Cumulative installed capacity in the rooftop solar segment in the country has crossed 10 GW and Gujarat has emerged as the leader in the segment with a contribution of 30 per cent to the total capacity.

The cumulative Roof Top Solar (RTS) installed capacity increased to 10.4 GW as of November 30, 2023, from 1.8 GW as of March 31, 2019.


The Compound annual growth rate (CAGR) of RTS installations during the period is about 46 per cent, according to information provided by the Union Ministry of New and Renewable Energy (MNRE).

MNRE launched its Rooftop Solar Programme Phase-II in August 2019 with an aim to achieve 40 GW capacity in the RTS segment. The financial outlay of the Phase-II RTS program is ₹11,814 crore, including ₹6,600 crore of Central Financial Assistance (CFA) and ₹4,985 crore of incentives to the Distribution Companies.

The Programme envisaged the installation of 4 GW of RTS capacity in the residential sector by providing CFA. It has been extended till 31.03.2026 without a change in the financial outlay initially approved.

Total CFA/subsidy released under Phase-II of the Rooftop Solar Program stood at about ₹2900 crore as of November 30, 2023.

Against the target of 4 GW capacity in the residential segment, MNRE has allocated 3.57 GW capacity to various implementing agencies. Against the allocated capacity, an aggregate capacity of 2.65 GW has been installed in the residential sector so far.

Gujarat is the leader in RTS installations in the country. In the cumulative capacity of 10.4 GW as of November this year, Gujarat’s share was 3.2 GW, followed by Maharashtra at 1.9 GW and Rajasthan at 1.1 GW capacity.

Industry analysts attribute Gujarat’s success in the RTS segment to its successful residential policy and the favourable stance of its DISCOMs towards rooftop solar projects.

Lately, some other states, such as Kerala, Andhra Pradesh and Maharashtra, and the union territory of Delhi, are increasingly promoting rooftop solar, according to a recent report of JMK Research-IEEFA.


The above states have the most favorable ecosystems for setting up rooftop solar projects. In contrast, states like Tamil Nadu and Uttar Pradesh continue to discourage their high-paying C&I consumers from shifting to rooftop solar-based solutions, it pointed out.

When asked whether DISCOMS have been apprehensive of signing power purchase agreements for rooftop solar projects fearing loss of revenue, MNRE Minister R K Singh said, while replying in Rajya Sabha, that certain concerns have been expressed regarding loss of revenue from the paying consumers. However, the DISCOMs also recognize the additional benefits of Rooftop Solar, including avoided costs for the generation, transmission and distribution losses and the compliance of renewable purchase obligation.

Meanwhile, provision has been made on the National Portal for Rooftop Solar for the consumer to raise requests at various stages of the application for making any changes/modifications in the application/claims.