The PM Surya Ghar Muft Bijli Yojana has achieved a significant milestone with 50.06 lakh rooftop solar installations nationwide, according to reports from The Financial Express. This free-electricity solar scheme represents a substantial market opportunity for companies involved in installing, financing, and manufacturing these solar panels. The achievement has particularly drawn attention to companies building these rooftop panels, with Tata Power, Waaree Energies, and Premier Energies emerging as key stocks in focus. The program has now reached 14.8 GW cumulative capacity and is adding approximately 1 lakh beneficiary households every six days, with the daily installation rate reaching 16,328 as of July 2026 - a 3.2x increase compared to October 2025.
Waaree Renewable Technologies has secured a significant 210 MWp (150 MWac) grid-connected ground-mounted solar project from Solaris Horizon Energy, a step-down subsidiary of Waaree Energies, according to Business Standard. The project has been awarded by a domestic entity and is scheduled to be completed during FY28, with the transaction qualifying as a related-party transaction undertaken at arm's length. This development strengthens Waaree's position in the solar EPC business, where the company operates as a solar developer that finances, constructs, owns and operates solar projects across geographies, focusing on long-term investments within the commercial and industrial customer segments.
The scheme's financial impact demonstrates its effectiveness in reducing household energy costs. ₹28,024 crore in subsidies has been disbursed via the Direct Benefit Transfer (DBT) system, as reported by The Financial Express. Nearly 19 lakh households report zero electricity bills, while 12 lakh households earned a combined ₹421 crore from surplus power exports in FY 2024-25. The program's ₹75,021 crore outlay has created a robust ecosystem featuring 34,219 registered vendors and over 2.32 lakh trained personnel. For EPC contractors and solar developers, the PM Surya Ghar scheme represents a high-volume, standardized market opportunity with the shift toward a 100% digital, end-to-end process streamlining project execution.
Tata Power sits strategically across the entire solar value chain, from solar cell manufacturing to customer installation and financing partnerships, as reported by The Financial Express. The company installed 1.7 gigawatt peak (GWp) of rooftop solar capacity during FY26, helping more than 2.2 lakh households and crossing three lakh cumulative residential customers. However, rooftop solar remains only one component of Tata Power's diversified business model, with benefits spread across multiple segments rather than concentrated in a single vertical.
Multiple brokerages have issued positive ratings on Tata Power, with Axis Capital maintaining an 'Add' rating and target price of ₹450 (19% upside potential), according to The Financial Express. Ambit upgraded to 'Buyer' rating with ₹420 target (13% upside), while Elara Capital maintains 'Buy' rating at ₹504 (34% upside). Motilal Oswal reiterated 'Buy' rating at ₹454 (22% upside), and Nuvama upgraded to 'Hold' with ₹400 target. However, Kotak Institutional Equities remains cautious with 'Sell' rating at ₹300 fair value.
For Tata Power, key monitoring factors include renewable capacity additions, rooftop solar installations, battery storage expansion, and Mundra power plant resolution, according to The Financial Express. For manufacturers like Waaree Energies and Premier Energies, demand growth, pricing, and capacity utilization will remain critical factors. The PM Surya Ghar scheme continues to serve as a key growth driver for domestic solar manufacturers, with the government's free-electricity initiative providing sustained market momentum for the sector. The 'Utility Led Aggregation' model, currently active in four states and sanctioned for 12, provides a structured path for developers to engage with low-income segments while mitigating payment risks through state-backed frameworks.
