India's energy supply grew by 6% in 2024, bolstered by a 10% rise in the first half due to soaring summer demand, followed by a subdued 2% increase in the second half impacted by an above-normal monsoon, according to SBI Capital Markets' (SBICAPS) report "Utility Beyond Utilities: Harnessing Non-Utility Solar." The report noted that renewable energy capacity surpassed the 200 GW milestone, with solar energy driving the growth. 

Renewables recorded an 8% year-on-year rise in capacity in 2024, with solar contributing 24.5 GW and wind adding 3.2 GW. Solar installations more than doubled compared to 2023, and the sector is expected to add 50 GW across FY25 and FY26. However, thermal capacity additions slowed in the first nine months of FY25, raising concerns about meeting targets. 

Non-utility solar accounted for 25% of total solar installations in 2024. Rooftop solar capacity rose by 4.6 GW, a 53% increase from 2023, while off-grid solar capacity surged by 197%. The C&I sector accounted for 75% of installed rooftop capacity, benefiting from reduced costs and favorable policies in states like Gujarat, Karnataka, Rajasthan, and Tamil Nadu. 

Residential rooftop solar is expected to become the largest segment under the PM Surya Ghar Muft Bijli Yojana, which targets 30 GW capacity and offers subsidies that reduce payback periods to 4-5 years. The scheme could generate a ?1.2 trillion ecosystem, benefiting manufacturers and project developers. 

The report projects annual non-utility solar additions to reach 20 GW by FY27, underscoring its critical role in achieving green energy security and reducing reliance on fossil fuels.