Top 5 Reasons Preventing Faster Rooftop Solar Adoption in India

Solar energy has emerged as one of the most promising renewable energy sources in India's clean energy transition, with roughly 133 GW of installed solar capacity so far. However, despite government incentives like the PM Surya Ghar Yojana and India's ambitious renewable energy targets, residential solar adoption continues to face significant barriers. A record 6 GW of rooftop solar could be added this year, thanks mainly to the impetus from the scheme. But even then, we will be at 25% of targets for the scheme.

Understanding the obstacles still keeping people away is crucial for policymakers, consumers, and industry stakeholders seeking to accelerate India's transition to sustainable energy. 

Here are the top 5 reasons that prevent people from opting for solar.

#1 High Upfront Installation Costs Remain the Biggest Deterrent

The primary barrier to solar adoption across India is the substantial upfront investment required. A 2024 survey byLuminous Power Technologies revealed that 59 percent of respondents cited high initial installation costs as their primary concern when considering solar panels. 

While the cost is very subjective and needs to be considered based on the size of the system, types of panels, and complexity of the installation, shoots up the costs. 

The PM Surya Ghar Yojana, launched in February 2024 to make solar more accessible for households, experienced a crucial revelation: despite approvals for subsidy schemes, as of July 2025, only 14.1 percent of the allocated INR 65,700 crore (USD 7 billion) in subsidies had been released.

The PM Surya Ghar Scheme curtails 20-30 percent cost. The scheme provides a subsidy support of up to INR 60,000 for 1-2 kW rooftop solar capacity, and 60,000 to 78,000 for 2-3 kW, with the latter being the upper limit of subsidy help.

This subsidy bottleneck directly impacts affordability, as many potential adopters cannot access the financial support needed to bridge the cost gap. 

The problem is compounded by the fact that approximately 60 percent of total system costs are attributed to installation charges alone, making labour costs a substantial portion of the overall investment.​

#2 Roof Structural Issues and Space

Beyond financial concerns, physical property limitations present another critical barrier. Notably, around 30–40 percent of inquiries become non-viable after structural evaluation due to these limitations. As buildings and infrastructure dominate the landscape, finding suitable locations for solar panels in Indian homes is a major challenge.

As buildings and infrastructure dominate the landscape of Indian cities, finding suitable locations for solar panels in cities becomes difficult. In addition, the low load-bearing capacities of buildings, generally the older structures, make the additional weight of solar unfeasible, deterring a potential installation.

Roof compatibility issues are multifaceted. Asphalt shingle roofs should be no more than 10 years old and in good condition before installing solar panels to ensure longevity and efficiency. Older roofs risk crumbling under the additional weight of solar arrays. 

Beyond age and material compatibility, inadequate space represents another structural barrier. Many properties in urban India, particularly in apartment buildings and densely constructed areas, simply lack sufficient south-facing roof area to generate meaningful solar output. A qualitative research study in Kerala identified inadequate roof space, building structural limitations, and grid connection issues as significant obstacles to solar adoption.​

#3 Lack of Awareness and Technical Knowledge

Despite India's growing solar capacity - which made the country the third-largest globally - consumer awareness remains surprisingly limited. Some people may be sceptical about the reliability or cost-effectiveness of solar energy, while others may simply be unfamiliar with the technology. The key concept of net metering for instance is widely misunderstood.

The complexity of solar technology compounds this challenge. Many potential adopters lack understanding about how solar systems work, their actual maintenance requirements, and realistic return on investment timelines. Academic research emphasised that a dearth of information regarding PV systems acts as a significant barrier to adoption. ​

In rural areas of India, awareness gaps are even more pronounced. The problem extends beyond technical knowledge to encompass broader education about benefits, advantages, and accessibility. This awareness deficit particularly impacts India's rural regions, where solar could provide significant development opportunities but faces information barriers.​

#4 Regulatory Complexity and Administrative Burden

The regulatory landscape for solar adoption in India is remarkably complex. A 2025 study by TeamLease RegTech revealed that solar energy firms must navigate an extremely convoluted compliance framework: a standalone solar plant in Maharashtra with a corporate office in Haryana must comply with 2,735 total compliance instances spanning 799 unique regulatory obligations annually, distributed across 646 central, 153 state, and municipal requirements.​

For residential consumers, this translates into lengthy approval processes. The research found that the solar installation approval process requires nearly 51 licenses and permits, creating a bureaucratic maze that discourages adoption, with the discom being the key stop for approvals. Net metering policies, which are crucial for rooftop solar economics, vary inconsistently across Indian states, adding another layer of complexity.​

#5 Grid Connection Delays and Infrastructure Limitations

Grid integration challenges significantly deter solar adoption in India. Discoms often delay approvals and connections, with many rooftop projects facing 3-6 month waits for net metering activation. Only 13 percent of PM Surya Ghar targets were met due to grid bottlenecks.​

Technical constraints include inadequate transformer capacity and voltage fluctuations, affecting over 40 percent of rural applicants. State-level grid policies lack uniformity, complicating interconnections. Scaling renewable grid connectivity requires urgent infrastructure upgrades to match India's 2030 clean energy goals.

Another less appreciated issue has been the challenge of O&M, with many rooftops required to create a water source or  other way to clean panels. Perceived complexity in O&M, which is not really the case, further muddles many minds. Customers going with small installers worry about their ability tolast and provide services.