The Top 5 Underperforming States For Rooftop Solar Under PMSGMBY

Ever since its inception on 29th February, 2024, PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) has been pivotal in increasing the share of solar rooftop capacity in India, and democratising renewable energy by empowering residential households to generate their own electricity. As intended, the scheme has helped increase rooftop solar energy in India’s energy mix, though not always equitably.

The official numbers on the scheme dashboard show that some of the biggest states are lagging on rooftop solar installations under the INR 75,021 crore scheme. While the numbers from small states are expected to be low, some of the big non-Himalayan states have underperformed far below others. Overall, India’s rooftop solar capacity under the scheme reached about 7.7 GW, with over 26,20,000 households covered. 

Here is a list of the top 5 worst-performing states of India for Rooftop Solar installations under the PMSGMBY. Note that, while these states may not be the lowest performers in absolute terms, their numbers lag sharply relative to their administrative size, urban infrastructure and renewable-energy maturity.

#1 Karnataka (60.45 MW)

Karnataka is the biggest laggard, and surprise when it comes to overall rooftop solar installations, especially considering it is the biggest state with administrative area spanning 1,92,000 sqkm. Moreover, its geography makes it the best region for solar power generation. The state has possibly found its high share of renewables a drag on adding faster rooftop capacity. 

The Southern state has installed just over 60 MW of rooftop solar capacity under the PMSGMB scheme, covering roughly 24,000 households. The contrast is striking, considering that the state has shown a strong growth in other renewable verticles. Subsidy allotment - at over INR 113 crore - for the state does not seem to be an issue in terms of timely release.

#2 Telangana (100 MW)

Another state with huge potential, but has so far been a rooftop laggard, is Telangana. The state has over 5 GW of installed solar power capacity, yet it hasn’t fared well in the segment under the PMGMB scheme. The state has achieved 100 MW of rooftop solar installation under the scheme, with roughly 36,000 households covered. A total amount of INR 180.66 crore in subsaidy payments has been released for the State. Considering its lack of large land parcels for utility scale solar, it needs to buckle up for faster rooftop additions.

To boost these numbers, the Telangana Electricity Regulatory Commission (TERC) has issued the Rooftop Solar PV Grid Interactive Systems Regulation, 2025. The policy replaces the previous 2016 framework and introduces comprehensive measures to facilitate multiple solar net metering models, provide financial clarity, and ensure technical and safety standards.

#3 Jharkhand (5.84 MW)

Jharkhand is another large state that has been lagging behind much smaller states and UTs under the PMSGMB Yojana. The state has got INR 9.75 crore allotment under the scheme.

Amassing 79,714 sqkm of Area, the state has installed less than 6 MW of rooftop solar capacity under the scheme, which is less than even Goa (12.13 MW). 

In addition to the area, Jharkhand’s geography is also ideal for solar power generation, yet the state has contributed little to the segment. 

#4 Bihar (51.33 MW)

Positioned in the same geography as Jharkhand, Bihar also ranks among the states with one of the lowest installation levels under the scheme. The state has received INR 76.6 crore in subsidies. With roughly 15,000 households catered to with the service, resulting in an installed capacity of 51.33 MW. 

Bihar's numbers account for less than 1 percent of the applications, and under 0.75 percent of installations so far, while accounting for over 9 percent of India's population. The state had an existing solar capacity of 435 MW, as of November 30, 2025. Quite simply, shameful figures, but no surprise considering Bihar's ranking on other critical metrics. 

#5 Tamil Nadu (183.7 MW)

With 12 GW of wind power capacity and 11.5 GW of solar capacity, Tamil Nadu is a leader in India’s solar revolution. However, its rooftop solar segment under PMSGMBY has shown lacklustre progress as the state added just over 180 MW of power under the scheme so far. 

TN is the 3rd largest state in India, and its contribution to the segment is crucial. In addition to the central assistance under the scheme, the state is also providing the Chief Minister’s Solar Rooftop Capital Incentive Scheme that subsidises installations with INR 20,000 per kW. Still, the state remains a laggard.

Why Are These States Trailing?

The laggard states need to overcome several challenges before they realise their rooftop solar potential under the PM Surya Ghar Muft Bijli Yojana (PMSGMBY). These challenges are multifaceted.

The rooftop solar uptake on government infrastructure remains tepid in these states as a result of gaps in procurement processes, budget allocation across departments, and the absence of coordinated implementation. 

The new India’s domestic content requirement (DCR) rule raises another challenge. The rule mandates the use of locally made solar modules - DCR-compliant modules - which are 30–40 per cent costlier and harder to source. Thus, with only 25 GW of DCR cell capacity against 100 GW of module capacity, a shortage has emerged. 

The lack of ease in the installation process, while much improved opver say, 2022, remains a key. Customers cite long waiting periods, demands for money beyond the billed values, and fear of subsidy delays as key reasons for holding off. 

The government’s digital platform for PMSGY, which is designed for seamless approvals and subsidy tracking, also remains riddled with technical glitches and slow grievance redressal. Installers reported persistent data-entry errors and no clear escalation pathway.

Financing remains another sticking point. While public sector banks offer rooftop loans at 6-8 per cent interest, the cumbersome paperwork deters many middle-income consumers. NBFCs and fintechs fill the gap with faster but pricier loans, often at 10-14 per cent interest.

Competition from state policies is also one of the reasons for low PMSGMBY numbers. For instance, one reason for Karnataka’s underperformance is the introduction of the Gruha Jyothi scheme, which offers free electricity to households consuming up to 200 units per month. The central scheme also faced challenges in the vendor selection stage. At this stage of application, potential customers realised that they needed to take out a loan to get the subsidy, which is a less attractive option compared to the Gruha Jyothi scheme.

To accelerate deployment, the Union Ministry of New and Renewable Energy has begun capacity-building programmes to train over 300,000 solar technicians, and launched ‘Model Solar Village’ and ‘Solar City’ initiatives to take the mission deeper into rural India. However, none have yet been fully operationalised.

Predictions for 2026

These laggard states need to speed up RTS installations to cater to the growing energy demand of their population. 

India is expected to add approximately 41.5 GW of new solar capacity by the end of fiscal 2026 (March 31, 2026), as per JMK research. About the milestone year of 2030, the India Rooftop Solar Market size in terms of installed base is expected to grow from 17.6 GW in 2025 to 41.52 GW by 2030, at a CAGR of 18.73 percent, the Mordor Intelligence noted. 

The bigger states, area- and population-wise, need to step up to do their part in country’s ambition for 2070. Some states, like Bihar, are now building up momentum. The state power distribution utility has issued a tender to develop grid-connected 275 MW rooftop solar projects. Going by the current trends of about 18 percent CAGR until 2030, Bihar is expected to add over 9 MW in 2026. Going by this CAGR, Tamil Nadu adds 33 MW, Telangana adds about 18 MW and Karnataka adds roughly 10 MW. The growth prediction for Jharkhand, by these numbers, is negligible (less than 1 MW).

Needless to say, the actual growth rate needs to be be much higher for these states to realise their true rooftop solar potential and contribute equitably to India’s renewable mix.