Rooftop Solar Installations in India Expected to Double to 4 Million by March 2026 under PM Surya Gh
K N Mishra
19/Aug/2025

What’s covered under the Article:
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Government projects rooftop solar installations to double from 1.7 million to 4 million by March 2026
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Utility-led aggregation model under the PM Surya Ghar Mut Bijli Yojana will simplify approvals, reduce costs and help discoms aggregate demand
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Scheme provides up to 300 units of free electricity, direct subsidies and collateral-free loans, aiming for 10 million rooftop solar units by March 2027
India’s rooftop solar sector is poised for a significant surge over the next 18 months, with installations projected to more than double to 4 million by March 2026, according to industry estimates and senior government officials.
The sharp rise will be driven primarily by the Prime Minister Surya Ghar Mut Bijli Yojana, which was announced earlier this year to accelerate solar adoption among households.
Under the scheme, the government has introduced a utility-led aggregation model that empowers power distribution companies (discoms) to aggregate demand and implement rooftop solar projects on behalf of households.
Officials believe this new model alone could add one million installations, thanks to simplified approval processes, better vendor accountability, and lower installation costs achieved through bulk procurement.
Key Features of the PM Surya Ghar Scheme
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Up to 300 units of free electricity per month for participating households
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Direct capital subsidies, based on system size
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Collateral-free loans for installation
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Total outlay: ₹75,021 crore (US$ 8.6 billion)
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Implementation timeline: FY 2024–25 to FY 2026–27
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Executing agencies: Discoms and empanelled vendors
So far, around 1.7 million households have already adopted rooftop solar systems. The broader national target is to achieve 10 million rooftop solar connections by March 2027.
Why Rooftop Solar Matters
Experts say that expanding rooftop solar capacity will not only support India’s clean energy goals but also:
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Reduce the financial burden on distribution utilities
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Enhance energy security through decentralised generation
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Provide low-cost, reliable electricity for households
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Reduce pressure on conventional grid infrastructure
A recent study by JMK Research and the Institute for Energy Economics and Financial Analysis (IEEFA) underlined that scaling decentralised energy solutions—of which rooftop solar is the most prominent component—will play a critical role in strengthening India’s pathway toward energy independence.
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