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Utility solar growth shows signs of slowdown, rooftop share rises to 54% in August

India added 3,445 MW of solar capacity in August, down from 4,114 MW in the year-ago month, even as rooftop additions nearly doubled.

ET EnergyWorld2 min read0 views
Utility solar growth shows signs of slowdown, rooftop share rises to 54% in August

India's solar capacity additions reached 17,779 MW for the current fiscal year to date, compared to 17,484 MW during the corresponding timeframe last year, driven by a surge in rooftop deployments even as utility-scale projects slowed down, according to a report by JM Financial. Ground-mounted systems have seen a reduced market share due to regulatory challenges and a declining pipeline of tenders.

During August 2026, rooftop solar accounted for 54 percent of all new solar capacity, while traditional ground-mounted projects dropped to a 41 percent share. Overall solar installations for the month stood at 3,445 MW, down from 4,114 MW in August 2025, despite rooftop capacity nearly doubling year-over-year from 973 MW to 1,850 MW.

The financial firm described the change as a fundamental market transition, noting that residential and commercial rooftops are taking on a primary role in expansion previously led by major utility parks. While ground-mounted installations historically made up 70 to 85 percent of monthly additions in FY25, their share has recently fallen to between 40 and 60 percent.

Year-to-date rooftop additions rose to 6,862 MW in FY27, up from 3,832 MW recorded in the same period of FY26, maintaining overall capacity growth. The broader sector has expanded significantly in recent years, moving from an annual rate of 6 to 7 GW in FY21 to 13 to 15 GW during FY22–24, before reaching 24 GW in FY25 and 44 GW in FY26, with monthly additions hitting a peak of 6.6 GW in March 2026 and recording 5 GW in June 2026.

JM Financial expressed measured optimism regarding short-to-medium-term momentum for renewable additions, citing consistent project completion rates and expanding demand for rooftop systems.

Originally reported by ET EnergyWorld on Sep 11, 2026.

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