India’s Distributed Solar Segment Expands Beyond Metro Cities in Late 2025

India’s distributed solar segment is witnessing a notable shift in late 2025, with adoption expanding rapidly beyond metro cities into tier-2 and tier-3 towns. This trend reflects growing awareness, improving installer networks, and rising electricity demand across non-metro regions.

What is driving non-metro solar adoption

• Rising grid tariffs and frequent power interruptions
• Expansion of local EPC and installer ecosystems
• Better access to financing and subsidy awareness
• Growing participation from MSMEs, schools, and hospitals

MSMEs and institutions lead demand

Small manufacturing units, cold storages, educational institutions, and healthcare facilities are increasingly deploying distributed solar systems to stabilise energy costs and ensure operational continuity.

Technology preferences in distributed projects

Hybrid inverters, high-efficiency rooftop modules, and monitoring-enabled systems are gaining preference as users seek long-term reliability and flexibility for future battery integration.

Outlook for 2026

Industry participants expect distributed solar adoption in non-metro regions to accelerate further in 2026 as policy clarity, financing access, and consumer awareness continue to improve.