Tier-2 Cities Drive India’s Rooftop Solar Boom, Outpacing Metros by Up to 5X: SolarSquare
India’s residential rooftop solar market is entering a more mature phase, with data reported by rooftop solar EPC company SolarSquare showing stable year-round demand, faster adoption in Tier-2 cities, and a stronger link between electricity tariffs and household solar investment decisions.
December 18, 2025. By Mrinmoy Dey
Rooftop solar demand in India has historically softened during the monsoon months due to installation constraints and deferred household decisions. SolarSquare’s 2025 installation data indicates that this pattern is weakening.
Demand across June–August remained largely stable compared to preceding quarters, particularly in Tier-2 markets. Improved installation planning, stronger local execution capabilities, and higher consumer confidence appear to be reducing the impact of weather-related disruptions, pointing to increased market maturity, SolarSquare stated.
The company’s analysis shows that Tier-2 cities are now outpacing metro markets in residential rooftop solar adoption. Cities including Aurangabad, Amravati, and Bhopal recorded 2–5X higher installation volumes than traditional metro-led markets such as Bengaluru.
Aurangabad crossed 14,500 rooftop installations in 2025, while Amravati exceeded 10,000, positioning Maharashtra among the country’s highest-adoption regions. The trend reflects rising awareness, improving financing access, and stronger economic confidence among Tier-2 homeowners, it said.
The company reports a 20–40 percent increase in rooftop solar installations during the October–November festive period across its operating markets. Traditionally viewed as a low-intent phase for large home investments, the festive season is increasingly emerging as a decision window for rooftop solar adoption, it said.
This shift reflects changing household priorities, with families directing festive budgets toward long-term energy assets that offer predictable savings and protection against rising electricity costs, rather than short-duration consumption-led purchases.
Commenting on the findings, Shreya Mishra, Co-founder and CEO, SolarSquare, said, “India’s rooftop solar market is no longer just emerging — it’s evolving. Households today are making energy choices grounded in reliability, long-term savings, and energy independence. These shifts aren’t just trends; they are the foundation of the next wave of solar growth that will power millions of homes across the country and pave the path for India’s energy independence.”
The company’s proprietary data further reveals a direct correlation between grid-tariff cycles and solar adoption. Across SolarSquare markets, installations surged 25–50 percent between September and November, closely tracking household electricity-cost anxieties triggered by tariff hikes. This data point corresponds with national patterns of rising electricity inflation, especially in states like Maharashtra, which has emerged as SolarSquare’s highest-adoption region.
Taken together, these three shifts indicate that India’s residential rooftop solar market is becoming more predictable, more geographically diversified, and more closely tied to household energy economics. Tier-2 cities, in particular, are expected to play a central role in driving scale over the next phase of growth, the company asserted.
please contact: contact@energetica-india.net.
Rajat Singh
Co-founder and CEO
Why Unified Intelligence is Key for C&I Renewables? Rajat Singh of EarthSync Answers
Nidhi Sharma
Director
R&D is an Integral Part of Zuvay Technologies' Growth Strategy, Says Director Nidhi Sharma
Anilkumar Mukundan
President – Sales
How Can India–Sweden Partnership Drive Decarbonisation?
Rajiv Kumar
CEO
What’s Behind Vedanta Aluminium’s Clean Energy Push? Rajiv Kumar Answers
Nirmal Reddy
President
Electric Mobility Success Depends on Execution, Not Intent, says ETO Motors’ Nirmal Reddy