PMSGY drives rooftop solar growth: 4,946 MW installed by July, says report
The report by IEEFA and JMK Research & Analytics shows that the subsidy disbursements for rooftop solar have crossed Rs9,280 crore
image for illustrative purpose
New Delhi: The Pradhan Mantri Surya Ghar Yojana (PMSGY) has transformed India’s residential rooftop solar segment with 4,946MW of capacity installed till July across various states and Union territories, according to a report on Tuesday.
The PM Surya Ghar: Muft Bijli Yojana, also known as the rooftop solar scheme, was launched in February 2024 to provide free electricity to households by subsidising the installation of rooftop solar panels.
The report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics showed that the subsidy disbursements for rooftop solar have crossed Rs9,280 crore.
With over 57.9 lakh applications submitted for residential rooftop solar installations as of July, PMSGY witnessed significant traction.
"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 approximately 77.2 per cent of the total installed capacity (4,946 MW) under the scheme till July 2025," the report said.
However, it noted that only 13.1 per cent of the target of 1 crore has been installed. This is despite a near fourfold increase in applications between March 2024 and July 2025.
Further, just 14.1 per cent of the allocated Rs 65,700 crore in subsidies have been released till July. In such a scenario, achieving the FY2027 target of 30GW capacity can become a considerable challenge, the report said. “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.
“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 Outdated perceptions of high upfront costs and maintenance persist, especially in rural areas,” added Prabhakar Sharma, senior consultant, JMK Research, and a co-author of this report.
The report also highlighted that fragmented supply chains for key rooftop solar components, such as panels, inverters, and mounting structures, are causing implementation delays. While a grievance redressal system has been set up under PMSGY, its effectiveness is limited.
