India has installed around 4.9 gigawatts (GW) of residential rooftop solar capacity under the Pradhan Mantri Surya Ghar Yojana (PMSGY) as of July 2025, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics. The report noted that over 57.9 lakh applications have been submitted under the scheme so far.
Between March 2024 and July 2025, only 13.1% of the target of 1 crore rooftop installations has been completed. Out of the total ₹65,700 crore subsidy allocated for the programme, only 14.1% had been released by July 2025. The government’s plan aims to reach 30 GW of rooftop solar capacity by FY2027, but the current pace remains below expectations.
Gujarat recorded the highest installed capacity under PMSGY at 1,491 megawatts (MW). Maharashtra, Uttar Pradesh, Kerala, and Rajasthan follow, and together these five states account for about 77.2% of the total installations under the scheme.
The report highlighted delays in subsidy disbursement, low consumer awareness, and limited access to finance as key barriers. Many potential users, particularly in smaller towns and rural areas, still view rooftop solar systems as expensive and complex. In addition, supply chain issues related to solar panels and inverters have led to slower project execution.
Since 2024, a capacity-building programme has been running under PMSGY to train over three lakh people, including technicians, vendors, and utility personnel. The report suggested setting state-level capacity targets and strengthening the grievance redressal system to handle subsidy and data-related concerns more efficiently.
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As of the end of FY2025, India’s total installed solar capacity stood at 105.6 GW, which is about 35% of the 2030 target of 300 GW. The report said India will need to increase its installation rate and improve coordination between state and central agencies to meet upcoming goals.
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Published on: Oct 15, 2025, 2:54 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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