India installed 2.7 GW of rooftop solar capacity in the first quarter (Q1) of 2026, compared to 2.2 GW in Q4 2025 and 1.2 GW in Q1 2025, according to the recently published Mercom India Research report Q1 2026 India Rooftop Solar Market Report.
Installations during the quarter were largely driven by the PM Surya Ghar programme, supported by grant-supported systems, simplified approval processes and increasing implementation support at the state level.
The residential segment accounted for 82% of total rooftop solar installations in the first quarter of 2026. The industrial, commercial and government segments contributed approximately 11%, 7% and 0.4% to the quarterly additions, respectively.
Quarterly installations include 81% under the capital expenditure model (CAPEX) and approximately 19% under the operating expenditure or renewable energy service provider model (OPEX/RESCO).
“The rooftop solar market maintained strong momentum in the first quarter of 2026, with installations increasing 25% quarter-on-quarter and 125% year-on-year, mainly driven by robust residential demand under the PM Surya Ghar programme,” said Raj Prabhu, CEO of Mercom Capital Group. “While consumer interest in rooftop solar remains strong, the next phase of growth will depend more on implementation and execution. Faster approvals, access to financing, installation quality, DISCOM coordination and grid readiness will increasingly determine how quickly the residential segment can scale. As rooftop solar penetration increases, improving on-ground execution and consumer experience will become critical to sustaining long-term growth.”
Maharashtra, Uttar Pradesh and Gujarat led rooftop solar installations during the quarter, accounting for 17%, 16% and 15% of installations respectively.
India’s cumulative rooftop solar installations reached 23.5 GW by the end of March 2026. Gujarat, Maharashtra and Uttar Pradesh continued to lead the pack in cumulative installed rooftop solar capacity, accounting for 24%, 16% and 9% of installations respectively.
Mercom said the average cost of rooftop solar systems remained relatively stable for most module technologies during the first quarter of 2026, while systems using Chinese modules saw a noticeable price increase.
