India's National Solar Mission set an ambitious target of 40 GW of rooftop solar by the end of 2026 — a target that has become a barometer for India's clean energy ambitions. As we reach mid-2026, the picture is one of significant progress driven by policy momentum, but with important regional disparities and ongoing challenges. Here is an honest assessment of where India stands and what it means for Telangana and AP.
The Numbers: Progress to Date
India's cumulative rooftop solar capacity crossed 30 GW in early 2026, representing approximately 75% of the 40 GW target. This is a marked acceleration from the 18 GW that existed at the end of 2024, driven primarily by the launch of PM Surya Ghar Muft Bijli Yojana (which incentivised 1 crore residential installations) and continued C&I expansion in states like Maharashtra, Gujarat, Rajasthan, Tamil Nadu, and Telangana.
The C&I segment has consistently been the largest contributor to capacity additions — accounting for approximately 65% of annual installations — because commercial and industrial consumers can self-finance projects based on a strong financial business case and have the scale to justify EPC engagement.
PM Surya Ghar: The Residential Push
The PM Surya Ghar Muft Bijli Yojana, launched in February 2024, has been the single largest driver of residential rooftop growth. The scheme targets 1 crore (10 million) residential households by 2027 with subsidised solar installations (₹30,000 for 1 kW, ₹60,000 for 2 kW, ₹78,000 for 3 kW+) and a provision for 300 free units per month for systems generating sufficient surplus. As of mid-2026, over 35 lakh applications have been processed through the national portal, with approximately 18 lakh installations commissioned.
State-Level Disparities
Progress is uneven. Rajasthan, Gujarat, and Maharashtra lead on absolute capacity additions. Telangana has performed strongly in the C&I segment with TSSPDCL's active net metering framework, but residential adoption has been slower relative to North India states. Andhra Pradesh is accelerating with the PM Surya Ghar push supplemented by state-level incentives for residential consumers.
What This Means for the Hyderabad Market
The national push toward 40 GW has positive spillover effects for C&I buyers in Telangana and AP. First, increased manufacturing scale globally has continued to drive panel prices down — TOPCon panel prices have dropped approximately 25% since early 2024. Second, the ecosystem of empanelled installers, DISCOM experience with net metering, and financial institution comfort with solar lending have all improved, reducing transaction friction for new projects. Third, MNRE's policy clarity — particularly on net metering rules and subsidy disbursement — has removed uncertainty that previously caused C&I buyers to delay investment decisions.
ARIA Green Energy's project pipeline in Hyderabad has grown 60% year-on-year in 2025–26, reflecting this market momentum. If you've been considering a solar investment, the convergence of low panel prices, mature financing options, and clear regulatory frameworks makes 2026 an excellent time to commit.
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