Rooftop Solar Takes Lead as Utility-Scale Growth Slows

India’s solar market is witnessing a significant structural shift as rooftop installations gain momentum while utility-scale solar projects show signs of slowing.

According to JM Financial, India added 3,445 MW of solar capacity in August 2026, compared with 4,114 MW during the same month a year earlier.

Rooftop solar emerged as the largest contributor to new capacity during the month, accounting for 54% of total solar additions. Ground-mounted solar projects contributed around 41%.

Rooftop installations nearly doubled year-on-year, reaching 1,850 MW in August 2026 compared with 973 MW in August 2025. The sharp increase highlights the growing contribution of distributed solar to India’s renewable energy expansion.

At the same time, the contribution of utility-scale solar has moderated. Utility-scale projects accounted for around 70–85% of monthly solar additions through FY25 but have recently contributed approximately 40–60%.

Regulatory challenges and a shrinking tender pipeline are among the factors affecting the pace of utility-scale project additions.

Despite the changing composition of the market, India’s overall solar capacity additions have remained resilient. Solar installations during FY27 so far reached 17,779 MW, slightly higher than the 17,484 MW added during the corresponding period of the previous financial year.

Rooftop solar has recorded particularly strong growth during this period. Rooftop capacity additions reached 6,862 MW in FY27 so far, compared with 3,832 MW during the corresponding period of FY26.

The latest figures indicate that rooftop solar is becoming an increasingly important component of India’s renewable energy market as the country’s solar capacity mix evolves beyond its traditional dependence on large utility-scale projects.