India’s renewable energy market encompasses not only Solar, Wind Energy, Solar Pumps, Green Hydrogen, and Energy Storage Systems but also Rooftop Solar. Notably, rooftop solar adoption in India is still very low, with only 1 in 100 eligible Indian households having installed it, making it one of India’s largest untapped clean energy opportunities.
Rooftop solar has reached only around 40 lakh of India’s nearly 30 crore eligible households. This translates to a penetration of just 1.3%, which is drastically lower than countries such as Australia (30-38% penetration), the Netherlands (24%), and Germany (12%). The penetration is on track to reach 75 lakh households by December 2026.
Bridging the ₹2.5 Lakh Crore Gap
This single statistic captures both the current reality and the scale of the opportunity ahead. The PM Surya Ghar Muft Bijli Yojana, backed by a ₹75,021 crore outlay, aims to solarise 1 crore households. Even then, India would reach only 3.3% penetration among eligible households, underscoring the vast long-term headroom for growth.
Furthermore, the 2026 budget allocated ₹22,000 crore to expand rooftop solar penetration in India. This brings the total policy support for rooftop solar to ₹97,021 crore. Overall, the under-penetration creates a total addressable market opportunity of ₹2.5 lakh crore by 2030.
Expanding Capacity vs. Capitalizing Demand
These initiatives are working. In FY26, rooftop installations reached a record 8.7 GW, up from 6.0 GW in FY25 and 4.6 GW in FY24. The existing 11.5 GW pipeline also provides strong visibility. Shakti Pumps Investor Presentation projects the market to reach 48.6 GW of installations by 2032, which is 5.6x the installations as of FY26.
Increasing rooftop solar adoption is also key to India’s ambitious goal of reaching 500 GW of non-fossil capacity by 2030. This is because rooftop solar currently accounts for 20% of the total solar market. Against this backdrop, we examine three leading companies with meaningful exposure to India’s fast-growing rooftop solar market.
#1 Tata Power: Capturing 19.5% of the National Rooftop Market
Tata Power, part of the Tata Group, has been the #1 solar rooftop provider in India for eleven consecutive years. The company provides end-to-end solar solutions to residential, commercial, and industrial consumers. Tata Power’s retail network spans 700+ cities, 650+ channel partners, and over 3,000 retailers.
The company offers a portfolio of rooftop solar kits ranging from 1 kW to 10 kW. This allows it to reduce the turnaround time from inquiry to installation to just about 7 days. In FY26 alone, it installed 1.7 GWp of rooftop solar. This brought their total installed capacity to over 4.8 GWp across more than 3.7 lakh installations.
A key highlight of this scale-up is its “Ghar Ghar Solar” campaign and partnerships with 16 financial institutions to provide consumers with easy financing options. This push has led to the residential segment’s contribution to the business increasing to 65% in FY26 from 45% in FY25. The company has also launched an integrated solar rooftop and battery storage solution.
Revenue Doubles: The Financial Anatomy of Tata Power’s Rooftop Boom
In FY26, the rooftop solar division revenue more than doubled to ₹4,759 crore, up from ₹2,210 crore in FY25. Management highlighted that the segment posted a robust 115% year-on-year growth in revenue billing. Consequently, net profit surged by 150% to ₹499 crore in FY26.
Management is very bullish on the rooftop solar business and sees it as a major driver of profit growth over the next few years. Following over 100% growth in FY26, management expects the rooftop business to grow by at least 50%-60% in FY27, with the potential to double again.
Management’s target is to secure and stabilize a 20% market share (current 19.5%) in the rooftop sector over the next three years. Tata Power aims to serve 30 lakh households with solar rooftops and generate over ₹30,000 crore in revenue from this business segment alone by FY30.
The ALMM Tailwind: Leveraging In-House Manufacturing
Vertical integration, combined with its in-house manufacturing capabilities, is expected to be a significant tailwind. To qualify for government subsidies for rooftop solar projects, companies must use solar cells and modules manufactured in India. Tata Power plans to meet this requirement entirely through its 4.3 GW cell and module manufacturing plant.
Furthermore, starting in June 2026, companies are required to use only Indian-made solar cells. Because of these regulatory tailwinds and domestic supply requirements, the company notes that its in-house manufacturing facility is well-positioned to supply both the fast-growing rooftop segment and large utility-scale projects seamlessly into the future.
#2 One in Every Six Rooftop Solar Installations in India carries the Waaree Energies Name
Waaree Energies is also one of the largest players in the rooftop solar industry. To capture the rooftop market, Waaree has built an extensive network. As of 2025, the company reports that approximately one in every six solar installations in the country carries the Waaree name.
Waaree provides an end-to-end rooftop solar ecosystem for homes and businesses. The company offers the Waaree Radiance Kit, which aligns with the PM Surya Ghar scheme. It is available in sizes ranging from 3 kW to 10 kW for homes, and can be scaled up to 5 MWp for commercial use.
The D2C Solar Ecosystem: Expanding Beyond Modules
Waaree’s distribution network spans 27 states and 200 districts. The network has expanded to more than 600 franchises (up from 480+ in FY25) and over 2,500 service partners. Waaree’s deep presence across major solar regions enables it to influence customer decisions directly at the point of sale.
To further deepen its reach, Waaree launched its e-commerce channel in FY26, generating over 28,000 orders across India. Waaree is leveraging its established rooftop distribution network to sell an integrated product ecosystem. The distribution network that sells solar modules also rolls out solar kits, Battery Energy Storage Systems (BESS), inverters, and other products.
This cross-utilisation of the distribution network reduces overall customer acquisition costs. In FY26, Waaree’s retail-segment rooftop solar business grew by 84% year-on-year to ₹5,515 crore. The retail business contributed 20.8% of the company’s revenue in FY26. Management sees the rooftop segment as a major driver of higher margins and business stickiness.
A ₹30,000Cr Capex Blueprint for Vertically Integrated Power
The company’s EBITDA grew 117% year-on-year to ₹5,909 crore in FY26, and plans to increase this to ₹7,000-7,700 crore in FY27. Waaree is investing about ₹30,000 crore across verticals over the coming years. The company will scale its solar module and cell capacities to 28 GW and 15.4 GW, respectively.
Its solar business would also enable it to meet domestic content requirements. The company has commenced construction of a 10 GW integrated ingot-and-wafer facility in Nagpur to secure its supply. Waaree is also building a 20 GWh BESS capacity, with 3.5 GWh scheduled to go live in FY27.
Waaree is also setting up a 1 GW Green Hydrogen Electrolyser capacity, backed by government PLI schemes. Additionally, it is scaling solar inverter capacity to 4 GW and transformer capacity to 20,000 MegaVolt-Ampere.
#3 Servotech Renewable Power System: The Niche Solar Firm Targeting 1 Lakh PM Surya
Servotech Renewable Power manufactures and deploys solar energy solutions, electric vehicle charging infrastructure, and BESS. Around 70-80% of manufacturing processes, components, and surface-mount technology machinery are common to both EV charging and solar inverter businesses. This operational synergy provides the company with an advantage.
The company has a distribution network of 600+ distributors and 6,000+ retailers. Currently, solar products account for approximately 51% of total revenue, and EVs account for 42%. The remaining 7% comes from other small business segments. To serve the rooftop market, it offers ServPort, a plug-and-play rooftop photovoltaic system and microinverters for small-scale rooftop applications.
Government Contracts and Infrastructure Execution
Servotech has proven its execution capabilities through significant public sector rooftop deployments. The company secured a major order to deploy rooftop solar infrastructure for the North Eastern Railway. This contract expands its footprint in the government and institutional markets.
Servotech also solarized the Maujpur-Babarpur Metro Station by executing a 1 MW solar setup directly on the station’s tin shed. The company has recently secured an order for a 1415 kW rooftop solar project from South Central Railway, Vijayawada Division. This is in addition to ₹73.7 crore received from the Andhra Pradesh Government.
To capitalize on the PM Surya Ghar Muft Bijli Yojana, Servotech partnered with CIMSME to launch a mobile application. Through this, the company plans to simplify the onboarding and installation process for consumers. Servotech has set an aggressive target to single-handedly roll out 1 lakh solarised homes by 2026.
The 1,150% Retail Growth and Working Capital Shift
The surge in demand for rooftop solar has boosted Servotech’s retail business. The company’s retail channel revenue, which was just around ₹2 crore per month in FY22, has scaled to about ₹25 crore per month by late FY26. Management expects the retail and distribution channels to eventually contribute more than 50% of total revenue, as rooftop solar adoption expands.
The Working Capital Advantage
This shift is good for the company’s financial health, as working capital in channel sales turns over in less than 30 days. This could provide much faster cash realization compared to standard 130+ day government turnkey projects.
Structural Valuation: Returns Analysis vs Peer Averages
Owing to a faster growth rate, Waaree has a higher Return on Capital Employed (ROCE) and Return on Equity (ROE) than Tata Power and Servotech. Tata Power’s business is capital-intensive, resulting in low return ratios, whereas Waaree’s return ratios are driven by faster growth and a focus on the solar manufacturing model.
In terms of valuation, Tata Power is trading at around 5-year historical median and industry multiple, while Waaree is trading at a discount to industry valuations. However, Servotech is trading at a significant premium to the industry median multiple but at a discount to historical valuations.
| Peer Comparison (X) | |||||
Company | Price-to-Earnings Multiple | Return Ratios | |||
| Company | 5Y Median | Industry | ROCE (%) | ROE (%) | |
| Tata Power | 31.7 | 31.6 | 30.6 | 10.5 | 10.2 |
| Waaree | 21.4 | NA | 32.0 | 38.8 | 32.8 |
| Servotech | 61.6 | 88.9 | 32.0 | 15.5 | 14.7 |
| Source: Screener.in (Data as of 10 July 2026) | |||||
The rooftop solar opportunity is no longer driven solely by policy but increasingly by economics and scale. While Tata Power is leading in execution, Waaree is leveraging vertical integration and distribution to expand margins.
Meanwhile, Servotech is targeting a niche through retail and government projects. Add these names to your watchlist to track how the rooftop solar penetration expands in years to come.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was unavailable have we used an alternative, widely used, and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.