Just 14.1% of the allocated `65,700 cr in subsidies have been released till July 2025

India has added around 4.9 GW of residential rooftop solar capacity under the Pradhan Mantri Surya Ghar Yojana (PMSGY) and over 57.9 lakh installation applications have been submitted as of July this year, a report released on Tuesday said. 

The report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics, however, noted that despite a near four-fold increase in applications between March 2024 and July 2025, only 13.1 per cent of the target of 1 crore installations has been met. Moreover, just 14.1% of the allocated Rs 65,700 crore (USD 7.5 billion) in subsidies have been released till July 2025.

Given this context, achieving the FY2027 target of 30GW capacity continues to be seen as a considerable challenge.

Under PMSGY, Gujarat leads all states with the highest installed residential rooftop solar capacity of 1,491MW, followed by Maharashtra, Uttar Pradesh, Kerala and Rajasthan.

These states together account for around 77.2 per cent of the total installed capacity (4,946 MW) under the scheme till July 2025.

"PMSGY has steadily expanded its policy framework to speed up residential rooftop solar adoption. Since 2024, it has rolled out a nationwide capacity-building programme to train over three lakh people and help vendors, utilities and financiers upskill," said Jyoti Gulia, Founder, JMK Research, and a contributing author of the report.