The Pradhan Mantri Surya Ghar Yojana (PMSGY) has accelerated India’s residential rooftop solar sector, installing 4,946 MW across states and UTs till July 2025. The scheme provides free electricity by subsidising rooftop solar panels.
A report by IEEFA and JMK Research showed that subsidy disbursements have crossed Rs 9,280 crore. Gujarat leads with 1,491 MW, followed by Maharashtra, Uttar Pradesh, Kerala, and Rajasthan. These states contribute 77.2% of the total capacity.
Despite receiving 57.9 lakh applications, only 13.1% of the 1 crore target has been installed. Only 14.1% of the Rs 65,700 crore subsidy has been released, raising concerns about meeting the FY2027 30GW goal. Experts noted low awareness, high perceived costs, limited financing, and fragmented supply chains as barriers.
The report recommends district-level facilitation cells, standardised rooftop solar kits, and an escalation system for subsidy delays. It also suggests streamlined digital processes, uniform product solutions, and consumer-focused support to boost adoption.
