Rooftop solar capacity installations in India saw a 26% year-on-year decline to 367 megawatts (MW) during January-March 2024, primarily due to rising input costs, according to Mercom Capital. The first quarter of 2023 had witnessed 485 MW of rooftop solar installations. The report titled ‘Q1 India Rooftop Solar Market’ highlights that installations also dropped nearly 10% quarter-over-quarter from 406 MW.

India’s cumulative rooftop solar capacity reached 10.8 GW by March 2024. The decline in installations was mainly due to application processing delays faced by residential customers, caused by oversubscription under the PM SURYA GHAR: MUFT BIJLI YOJANA programme. Additionally, the rise in module prices to comply with domestic content requirements (DCR) further contributed to reduced capacity additions under the SURYA Gujarat program.

The industrial segment led quarterly capacity additions, comprising almost 57% of installations. The commercial, residential, and government segments accounted for around 28%, 14%, and 1.1% of capacity additions, respectively.

Raj Prabhu, CEO of Mercom Capital Group, noted, “Although rooftop solar is off to a slow start, 2024 could be a breakout year if the government’s residential rooftop programme with attractive incentives succeeds.” However, he highlighted supply-side challenges, including a short supply of inverters and certain components, availability of skilled labor, and concerns over the ability of installers and government agencies to manage the increased demand.

Gujarat, Maharashtra, Haryana, Kerala, and Karnataka led the rooftop solar additions in the quarter, with these top-five states accounting for more than 67% of the quarter’s installations.