India adds 4.9 GW rooftop solar capacity under PM Surya Ghar scheme; only 13 pc of target met

New Delhi, Oct 14 (PTI) India has added around 4.9 GW of residential rooftop solar capacity under the Pradhan Mantri Surya Ghar Yojana (PMSGY) and over 57.9 lakh installation applications have been submitted as of July this year, a report released on Tuesday said.

The report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics, however, noted that despite a near four-fold increase in applications between March 2024 and July 2025, only 13.1 per cent of the target of 1 crore installations has been met.

Moreover, just 14.1 per cent of the allocated Rs 65,700 crore (USD 7.5 billion) in subsidies have been released till July 2025.

Given this context, achieving the FY2027 target of 30GW capacity continues to be seen as a considerable challenge.

Under PMSGY, Gujarat leads all states with the highest installed residential rooftop solar capacity of 1,491MW, followed by Maharashtra, Uttar Pradesh, Kerala and Rajasthan.

These states together account for around 77.2 per cent of the total installed capacity (4,946 MW) under the scheme till July 2025.

"PMSGY has steadily expanded its policy framework to speed up residential rooftop solar adoption. Since 2024, it has rolled out a nationwide capacity-building programme to train over three lakh people and help vendors, utilities and financiers upskill," said Jyoti Gulia, Founder, JMK Research, and a contributing author of the report.

"However, low consumer awareness and access to finance remain significant barriers to the adoption of rooftop solar. Outdated perceptions of high upfront costs and maintenance persist, especially in rural areas," said Prabhakar Sharma, senior consultant, JMK Research, and a co-author of this report.

Fragmented supply chains for key rooftop solar components, such as panels, inverters and mounting structures, also cause implementation delays, the report showed.

"Establishing clear, time-bound rooftop solar capacity targets at the state-level is essential for creating a coherent vision and ensuring effective policy execution," said Vibhuti Garg, Director, IEEFA - South Asia, and a contributing author.

A grievance redressal system has been set up under PMSGY but its effectiveness is limited.

"PMSGY should establish a district-level escalation matrix so that subsidy disbursement delays, incorrect data entries or portal malfunctions can be routed beyond the DISCOM or portal level," said Aman Gupta, research associate at JMK Research, and a co-author of this report.

To increase the conversion of applications into actual installations, state- and district-level facilitation cells should guide households in filing applications and claiming subsidies. Marketing campaigns and consumer outreach initiatives can be taken up to educate potential adopters.

"The rooftop solar market continues to face fragmented quality and weak end-to-end guarantees, challenges that standardised plug-and-play solutions can resolve," said Sharma.

IEEFA said that promoting the commoditisation of rooftop solar kits, with modules, inverters, mounting structures and cables supplied as standardised, pre-assembled packages, can simplify installation and minimise project delays.

The report authors said the long-term success of PMSGY hinges not only on the provision of subsidies but also on its ability to institutionalise streamlined digital processes, standardised product solutions and consumer-centric support systems. PTI GVS DRR