States Crucial to India’s 30 GW Target by 2027, Says Report

The Centre has set a 30 GW rooftop solar target by 2027 under the PM Surya Ghar scheme. But its success hinges on proactive reforms and support from states, including timely subsidies, net metering, and grid integration policies.

April 15, 2025. By EI News Network

As India pushes forward to meet its ambitious target of 500 GW non-fossil fuel capacity by 2030, rooftop solar (RTS) is fast emerging as a vital component of the country’s clean energy roadmap. While large-scale solar parks continue to contribute the lion’s share of installed renewable capacity, RTS is expected to play a pivotal complementary role, particularly in urban, residential, and commercial sectors.

This insight comes from a new report by the Council on Energy, Environment and Water (CEEW), titled, 'How are Indian States Enabling Rooftop Solar Adoption?' The study highlights the crucial importance of state-level interventions to unlock the full potential of rooftop solar adoption across India. The Ministry of New and Renewable Energy (MNRE) has set a 30 GW target for rooftop solar capacity by 2027. In pursuit of this, the central government has launched several flagship schemes. These include the ‘PM Surya Ghar: Muft Bijli Yojana’, offering subsidies and financial incentives to households for adopting rooftop solar systems. Complementing this is a special initiative under the ‘PM JANMAN Programme’, focusing on energy access for Particularly Vulnerable Tribal Groups (PVTGs).

Additionally, recent amendments to the Electricity (Rights of Consumers) Rules, 2020 aim to streamline rooftop solar deployment through simplified grid integration and faster approval timelines. Despite these national initiatives, the success of RTS implementation largely depends on how states formulate and execute supporting policies and regulations.

A recent analysis of 30 state policies and 29 regulatory documents, as of December 2024, reveals considerable variation across states in terms of net and gross metering provisions, system capacity limits, energy accounting and settlement mechanisms, and financial or procedural incentives for consumers. Progressive states have gone a step further by introducing clear RTS capacity targets, simplified approval processes, and innovative business models such as solar leasing, group net metering, and peer-to-peer trading frameworks.

These have made rooftop solar adoption more attractive and accessible for consumers and developers alike. To fully unlock the potential of RTS in India, experts suggest that states must undertake several key reforms. These include aligning metering frameworks with local market maturity and DISCOM readiness, relaxing stringent capacity limits for net metering, offering targeted financial incentives such as generation-based incentives or property tax rebates, and creating digital RTS registries for better monitoring and transparency.

Additionally, states are encouraged to conduct regular reviews of their policies and regulations to ensure they remain responsive to market developments and stakeholder feedback. As India pushes forward with its renewable energy ambitions, the role of states in facilitating a favorable environment for rooftop solar adoption will be critical to achieving national energy security, sustainability goals, and empowering millions of energy consumers across the country.

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