Rooftop Solar Capacity Reaches 4,946 MW Under PM Surya Ghar Yojana

As COP 30 kicks off in Brazil next month, where global leaders will brainstorm ways to implement the $1.3 trillion annual climate finance goal by 2035 amid soaring global emissions, India's rooftops are quietly stealing the show. 

Picture your neighbor's solar panels slashing their electricity bill while fueling India's clean energy charge. The Pradhan Mantri Surya Ghar Yojana (PMSGY) has sparked a rooftop solar surge, hitting 4,946 MW by July 2025, with INR 9,280 crore (US$1.05 billion) in subsidies, according to a new report by IEEFA and JMK Research & Analytics. 

Yet, with only 13.1% of its 1 crore household target met, low conversion rates and supply chain snags threaten the ambitious 30 GW goal by FY2027.

Launched just over a year ago, PMSGY has made solar power accessible for households, previously sidelined by high costs and low awareness. With 57.9 lakh applications pouring in, public enthusiasm is clear, but only 22.7% of these have turned into actual installations. "PMSGY has laid a strong foundation, but low consumer awareness and limited financing access are major hurdles," says Prabhakar Sharma, senior consultant at JMK Research. 

Rural households, in particular, shy away from perceived costs and maintenance burdens, while fragmented supply chains for panels and inverters, plus technical glitches in grievance systems, slow progress.

Gujarat leads with 1,491 MW and a 65% conversion rate, thanks to its strong solar ecosystem. Kerala, Maharashtra, Uttar Pradesh, and Rajasthan follow, making up 77.2% of capacity. States like Assam and Delhi are boosting adoption with extra subsidies. To close the gap, the report suggests plug-and-play solar kits, a digital Domestic Content Requirement for local materials, and training three lakh workers to bolster the solar workforce. 

"A district-level escalation matrix and state-level facilitation cells could streamline installations," says Aman Gupta, a research associate at JMK Research. Vibhuti Garg from IEEFA stresses the need for clear, time-bound state targets.