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India鈥檚 rooftop solar capacity is expected to rise sharply from 17 GW in FY25 to 25鈥�30 GW by FY27, according to a new report by CareEdge Ratings. The growth is being driven by the country鈥檚 broader clean energy ambitions, where rooftop solar鈥攅specially in the commercial and industrial (C&I) segment鈥攊s gaining traction as a cost-saving and sustainability tool. Businesses are increasingly adopting solar to cut operational costs and meet ESG goals. As of FY25, India鈥檚 total renewable energy capacity stood at 220 GW. The government has set a 300 GW solar target by 2030, with rooftop systems expected to play a key role in reaching that milestone. Supportive policies like net metering, lower technology costs, and incentives under the PLI scheme are helping accelerate adoption. The Centre鈥檚 Surya Ghar Muft Bijli Yojana鈥攚hich offers up to Rs 780 billion in subsidies for 10 million households鈥攊s also expected to drive residential installations and create nearly 1.7 million jobs. The segment recently hit a milestone with 1 million rooftop systems installed as of March 10, 2025. Gujarat continues to lead adoption through its Surya Gujarat programme, while Maharashtra has seen strong momentum from MSMEs and urban commercial hubs. The rooftop solar segment now accounts for nearly 20 per cent of India鈥檚 total solar mix. While utility-scale projects still dominate, the distributed nature and direct consumer engagement of rooftop systems make them increasingly important in India鈥檚 energy transition.