India’s rooftop solar capacity grows by 1.1 GW in first half of 2024

India added 1.1 GW of rooftop solar capacity from January to June 2024, a 26% increase from the 873 MW added in the same period last year, according to a report by US-based research firm Mercom Capital. The report, titled “India Rooftop Solar Market,” highlighted that 731 MW of rooftop solar was installed in the second quarter of 2024, representing an 89% increase from 388 MW year-on-year. As of June, India’s total rooftop solar capacity reached 11.6 GW.

The industrial sector accounted for over 23% of new installations, while the commercial sector added 4% and the government sector contributed 0.7%.  

The growth of the rooftop solar sector is largely driven by the ‘PM Surya Ghar Muft Bijlee Yojana,’ which provides subsidies for rooftop solar installations. Launched to offer free electricity to 10 million households, the initiative was approved by the Union Cabinet in February with a budget of Rs 750.21 billion. Households installing rooftop solar panels receive 300 units of free electricity each month. However, challenges like module availability, component shortages, and rising costs need to be addressed to advance this scheme, according to Raj Prabhu, CEO of Mercom Capital Group.