What Are The New Challenges In Rooftop Solar? Experts Explain

Rooftop solar in India is gaining traction with the advent of PM Surya Ghar, however, several ground-level challenges are affecting its growth. In Saur Energy's latest Solar Trailblazers event in Bengaluru, experts talked in detail about the key issues affecting the growth of rooftop solar in Karnataka and also in different parts of the country. 

Experts shared data to point out that Karnataka, one of India’s renewable energy leaders, seems to be struggling to accelerate rooftop solar (RTS) adoption despite policy interventions and strong consumer interest. Of the state’s 9,600 MW installed solar capacity, only about 700 MW comes from rooftop projects.

Experts flagged structural and awareness challenges. “Karnataka received about 2.23 lakh applications under rooftop solar, but only 11,000 installations were completed — a conversion rate of just 5%,” said Gautham Molleti, Senior Associate at CSTEP. However, Molleti pointed out that now new policies have been framed, which is likely to give impetus to the sector with the norms becoming more diversified. 

He said that the state has amended its distributed solar PV policy to include virtual net metering, group metering, and coverage for carports and apartment complexes. Molleti noted, “These changes expand access for households in apartments or shared spaces. But awareness remains low and needs more aggressive promotion.”

Hybrid and Micro Inverters Gain Ground

Inverter manufacturers on the other side that while conventional on-grid inverters are taking the lion's share in the rooftop solar market, slowly hybrid inverters and micro-inverters are also making inroads. Inverter makers are now optimistic of a higher uptake of advanced technologies like micro-inverters in the residential rooftop solar market in southern states like Karnataka. 

Rooftop growth is also shaping demand for hybrid inverters that integrate power generation with storage. Bharat Singh, Director–Sales & Marketing (India and MENA) at Deye Inverters, said sales momentum has accelerated sharply. “When we started in 2021, hybrid inverter sales were negligible. By Jan–Mar 2025, sales in just three months matched our entire 2023 volumes,” he said.

However, Singh flagged new hurdles tied to data security norms mandating the use of GPRS SIM-based inverters. He also said that with the new norms, inverter costs might go up slightly. “We introduced in-built WiFi inverters to reduce costs, but are now required to use SIM-based systems. This raises costs slightly, and if only Indian-made loggers are mandated, prices could rise further as local loggers are more expensive,” he cautioned.

Micro inverters, targeted at small residential systems (2–3 kW) and rooftop C&I installations (200–300 kW), are also emerging as a niche growth area. Singh said Deye is preparing to launch micro-hybrid inverters with storage at the upcoming October REI Expo.

Financing Support Strengthens Adoption

Industry participants underlined the role of affordable credit. Molleti said solar loan rates have fallen by around 7%, while banks are now directly linked to the National Rooftop Solar Portal. “This eliminates the earlier hassle of coordinating separately with vendors and financiers. In Bengaluru, linking EMIs to electricity bills has enabled households to recover system costs within 4–5 years,” he added. With a 25-year system life, RTS adoption remains attractive, though benefits are still concentrated in urban centres.

Oswal Pumps Eyes Rooftop Solar Play

Solar pump manufacturer Oswal Pumps is expanding into the rooftop segment under the PM Surya Ghar scheme. “In 2023, we started with 200 MW; now we are at 2–3 GW capacity. We are also adding another 1 GW in HJT technology,” said Devaraj M R, Senior Regional Sales Manager at Oswal Solar. He said the company plans to deepen its presence in South India while leveraging its established network in the North.

Manufacturing Shift to New States

While rooftop solar adoption drives demand downstream, upstream manufacturing is also undergoing change. More than 35 firms have announced solar cell plants in India, with states like Madhya Pradesh and Odisha emerging as alternatives to Gujarat. GREW Solar and Insolation Energy are setting up a 3 GW plant in Madhya Pradesh, while Inox Solar (4.8 GW), Jakson Engineers (2.4 GW), and others are investing in Odisha.

Industry executives said lower power tariffs, water availability, and state-level incentives are tipping the balance. “In Gujarat, manufacturers pay about ₹9–10 per unit for power, compared with ₹4 per unit in Madhya Pradesh and Odisha,” said Shravan Gupta, Director at Cosmic PV. But he cautioned that solar cell manufacturing remains capital-intensive, with high land, water, and utility requirements.