May 28 : India added 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 Mercom India Research’s newly released Q1 2026 India Rooftop Solar Market Report.
Installations during the quarter were driven largely by the PM Surya Ghar program, supported by subsidy-backed systems, simplified approval processes, and increasing state-level implementation support.
The residential segment accounted for 82% of total rooftop solar installations during Q1 2026. The industrial, commercial, and government segments contributed 11%, 7%, and 0.4% of the quarterly additions, respectively.
Installations under the capital expenditure (CAPEX) model accounted for 81% of the quarter’s additions, and capacity additions under the operational expenditure or renewable energy service company (OPEX/RESCO) model represented approximately 19% of installations.
“The rooftop solar market maintained strong momentum in Q1 2026, with installations increasing 25% quarter-over-quarter and 125% year-over-year, driven primarily by robust residential demand under the PM Surya Ghar program. While consumer interest in rooftop solar remains strong, the next phase of growth will depend more on implementation and execution. Faster approvals, financing access, installation quality, DISCOM coordination, and grid readiness will increasingly determine how quickly the residential segment can scale. As rooftop solar penetration rises, improving on-ground execution and consumer experience will become critical to sustain long-term growth,” said Raj Prabhu, CEO of Mercom Capital Group.
Maharashtra, Uttar Pradesh, and Gujarat led rooftop solar capacity installations during the quarter, accounting for 17%, 16%, and 15% of installations, respectively.
Rooftop solar tenders totalling 482 MW were issued in Q1 2026, a decline of over 38% quarter-over-quarter (QoQ) while increasing nearly 32% year-over-year (YoY). In Q1 2026, 269 MW of rooftop solar capacity was auctioned, a 67% decline compared to Q4 2025.
In Q1 2026, rooftop solar accounted for 18% of the country’s total solar installations.
Gujarat, Maharashtra, and Uttar Pradesh continued to lead cumulative installed rooftop solar capacity, accounting for 24%, 16%, and 9% of installations, respectively.
In Q1 2026, the average cost of rooftop solar systems remained relatively stable across most module technologies, while systems using Chinese modules recorded a noticeable increase in pricing.
India’s cumulative rooftop solar installations reached 23.5 GW at the end of March 2026.
The top 10 states accounted for 80% of cumulative rooftop solar installations as of March 2026.
Between Q1 2025 and Q1 2026, Assam recorded the highest compounded quarterly growth rate at 40%, followed by Uttar Pradesh and Andhra Pradesh, with growth rates of 22% and 18%, respectively.
The report also includes a comprehensive analysis of net metering policies in all Indian states and Union Territories.
Key Highlights from the Q1 2026 Mercom India Rooftop Solar Market Report
- India added 2.7 GW of rooftop solar capacity in Q1 2026
82% of the installations during the quarter came from the residential segmentCumulative rooftop solar installations reached 23.5 GW at the end of Q1 2026Maharashtra, Uttar Pradesh, and Gujarat led solar capacity additions during the quarterRooftop solar accounted for 18% of India’s total solar installations during Q1 2026