With only 1.3% of eligible Indian homes currently using rooftop solar, a new government-backed expansion targets a ₹2.5 lakh crore market by 2030. Companies like Tata Power, Waaree Energies, and Servotech Renewable Power are scaling operations to capture this growing demand, supported by significant public funding.
India’s renewable energy sector is entering a period of rapid expansion in the rooftop solar segment. Despite the push from the government, including a ₹75,021 crore outlay under the PM Surya Ghar Muft Bijli Yojana and a ₹22,000 crore budget allocation for FY26, the technology has reached only 40 lakh households. This represents just 1.3% of the nearly 30 crore eligible homes in the country, pointing to a massive gap between current adoption and future potential.
Market Growth Targets and Capacity Expansion
The industry estimates a total addressable market of ₹2.5 lakh crore by 2030. Sector projections indicate that solar installations could rise to 48.6 GW by 2032, a significant increase from current levels. This growth is essential for India’s broader objective of reaching 500 GW of non-fossil fuel capacity by 2030. For investors, this shift implies that companies with established manufacturing and retail networks are best positioned to benefit, provided they can manage the costs associated with scaling production.
Key Players in the Solar Space
Tata Power continues to hold a 19.5% market share. In FY26, its rooftop solar business reported revenue of ₹4,759 crore and a net profit of ₹499 crore. The company intends to maintain its market lead by utilizing in-house manufacturing to meet domestic content rules, with a goal of achieving ₹30,000 crore in segment revenue by FY30.
Waaree Energies is focusing on an integrated product ecosystem, having grown its retail rooftop business to ₹5,515 crore in FY26. The company is currently directing roughly ₹30,000 crore in total capital toward scaling module and cell manufacturing. Meanwhile, Servotech Renewable Power is diversifying its revenue by combining solar solutions with EV charging and battery storage. With solar products accounting for 51% of its revenue, the company’s focus on the retail channel is aimed at improving cash flow by avoiding the payment delays often seen in government-tendered projects.
Investor Context and Risks
When evaluating these firms, investors often compare their different business models. Tata Power is generally viewed through the lens of stability and industry-standard valuations, while companies like Waaree Energies have shown higher return ratios linked to rapid growth. Servotech often trades at higher valuation multiples, which reflects market expectations for its future expansion rather than current earnings alone.
It is important for investors to note that the rooftop solar sector remains sensitive to government policy changes and interest rates, which affect consumer affordability. Additionally, the ability of these companies to maintain profit margins will depend on their success in controlling raw material costs and efficiently executing large-scale capacity additions. The next monitorable for the sector will be the actual pace of household adoption and whether the current manufacturing investments translate into sustained market share gains.