New Delhi: Rooftop solar capacity installations in the country fell by 25 percent to 389 MW during April-June 2022 compared to the year-ago period, according to Mercom India Research.

In the second quarter of 2022, rooftop solar accounted for 10 percent of total solar installations. India's cumulative rooftop solar capacity was over 7.9 GW at the end of Q2 2022, the research firm's 'Rooftop Solar Market Report Q2 2022' said on Thursday.

In January-June, rooftop solar installed capacity was 2 percent down at 845 MW over the same period of the last year.

"…supply chain issues and higher component costs and the basic customs duty took a toll on the market in the second quarter. Rooftop project costs have risen for six quarters in a row. But the economic case for rooftop solar is stronger than ever, and we expect the market to show strength going forward," said Raj Prabhu, the CEO of Mercom Capital Group.

The government has imposed a 40 percent basic customs duty on solar modules and 25 percent on solar cells with effect from April 1, 2022.

As per the report, Gujarat was the top state for cumulative rooftop solar installations, followed by Maharashtra and Rajasthan.

During the quarter, around 50 percent of installations were in the industrial segment, followed by 35 percent, 13 percent, and 2 percent in commercial, residential, and government segments, respectively.

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