India’s rooftop solar sector is expected to undergo major procedural changes as government sources indicate that the Ministry of New and Renewable Energy (MNRE) is preparing new guidelines to speed up project approvals. This development comes at a time when multiple state distribution companies (DISCOMs) are struggling with a large backlog of rooftop solar applications filed under the PM Surya Ghar: Muft Bijli Yojana.

Rising Application Backlog Across States

Industry insiders told SolSetu that states such as Maharashtra, Gujarat, Uttar Pradesh, and Rajasthan have reported a surge in applications since September 2025. Many consumers are facing delays ranging from 30 to 90 days for technical feasibility approvals.

A senior DISCOM official, speaking on condition of anonymity, said: “We have never seen this volume before. The subsidy scheme has attracted lakhs of new applicants, and the existing approval system is not built for this load.”

MNRE Working on a Universal Online Approval Framework

According to sources, MNRE is considering introducing a universal approval timeline across all states. The proposed framework may include:

• Maximum 15-day approval window for residential rooftop systems
• Mandatory online updates from DISCOMs every 5 days
• Penalty for excessive delays without valid justification
• Faster net-metering verification using AI-enabled document checks

Rooftop Solar Demand Expected to Grow Further

As module prices continue to fall and subsidies remain attractive, analysts expect rooftop solar demand in India to grow between 35% and 42% annually over the next two years. The large-scale adoption has highlighted the urgency of improving approval systems nationwide.

Experts believe that streamlined processes will help India reach its ambitious target of 40 GW rooftop solar capacity in the near future.

Impact on Consumers and Solar Installers

Solar EPC companies say that delayed feasibility approvals directly affect project timelines and cash flow. Consumers also face uncertainty about subsidy eligibility and meter installation dates.

“If MNRE implements these guidelines, it will be a big relief for installers and homeowners,” said a solar industry consultant. “The rooftop sector is ready to grow faster — all we need is predictable approvals.”

What Happens Next

The updated guidelines are expected to be released in early December 2025. MNRE officials have hinted that the new system will integrate with existing state portals to avoid confusion.

SolSetu will continue monitoring the developments and provide updates once the official notification is released.