India installed 6.6 GW of rooftop solar capacity in the first half (1H) of calendar year (CY) 2026, up 136% compared to the 2.8 GW installed in H1 2025, according to Mercom India’s newly released Q2 and 1H 2026 India Rooftop Solar Market Report.
The figure includes 3.8 GW of rooftop solar capacity added in the second quarter (Q2), up 41% from the 2.7 GW installed in Q1 2026. Q2 installations also increased 136% year on year (YoY) from 1.6 GW in Q2 2025.
Rooftop solar accounted for 33% of India’s total solar installations during the quarter.
According to Mercom, rooftop solar installations were primarily driven by the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PM Surya Ghar program). Rooftop systems had been installed in nearly 4.5 million households by June 2026, reaching approximately 45% of the program’s target of 10 million households.
Residential installations continued to dominate the market in Q2 2026, contributing 84% of total additions. Industrial installations accounted for 10%, followed by commercial installations at 5%, and government installations at 1%.
Installations under the capital expenditure (CAPEX) model accounted for a majority of quarterly additions in Q2 2026.
The implementation of ALMM List-II requirements from June 1, 2026, increased pressure on domestic cell availability and domestic content requirement (DCR) module prices. Subsequent transition measures eased near-term pressure, with eligible net-metering and open access projects receiving a transition window until Dec. 31, 2026. Residential consumers under PM Surya Ghar opting for the “Give It Up” category can forgo the subsidy and use non-DCR modules until the program ends in March 2027.
“India has a strong residential rooftop solar pipeline, but converting it into installations will depend on faster approvals, financing, and project delivery. Higher grid tariffs should strengthen commercial demand, but rising system costs and regulatory constraints could limit industrial growth,” said Raj Prabhu, CEO of Mercom Capital Group. “The ALMM transition window will help projects move forward in the second half, but it could also trigger a rush to meet deadlines and increase price volatility. Beyond 2026, market growth will depend on domestic cell capacity ramping up quickly and states removing approval, metering, and grid connectivity bottlenecks.”
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: [email protected].
Comments
Please login to comment
Entries open in seven categories: Modules, Inverters, BoS, BESS, Manufacturing, Sustainability, Projects.
April 01 – August 31, 2026
Thursday, October 7, 2026
11:00 am – 12:30 pm CEST, Berlin, Paris, Madrid
You have no items in your basket.
