Resurgent demand and strong supply-side enablers support a highly favourable market outlook
India’s residential rooftop solar capacity as of 31 March 2022 may only be a mere 2,010 megawatt (MW). But because of a rising need for cost savings and increasing awareness among consumers, we expect residential solar rooftop installations to rapidly accelerate in the coming years. By the end of fiscal year 2023, we expect cumulative residential rooftop solar capacity to reach 3,214MW, nearly a 60% year-on-year increase. We note that the central government’s recent steps to create a single national digital portal to simplify the process of rooftop solar installations for residential consumers and formalising a direct benefit transfer mechanism for subsidies will aid the demand in the segment. Our assessment of state-wise attractiveness for rooftop solar installations finds that Gujarat,…