Tier-II and Tier-III cities are seeing stronger interest in rooftop solar as awareness of its economic benefits increases. The larger presence of independent homes, suitable rooftops, and small businesses creates a natural addressable market, while rising electricity costs are encouraging consumers to explore alternatives. Kailash Rathi, Business Head Wheels & Head Partnerships, Ecofy adds that government support through the PM Surya Ghar: Muft Bijli Yojana is also helping improve affordability and awareness. In an exclusive interaction with Rajneesh De, Group Editor, APAC Media & CXO Media, Rathi emphasizes that the combination of favourable housing patterns, rising consumer interest, and policy support is making rooftop solar increasingly relevant across these markets.
What are the services offered by Ecofy?
Ecofy is a tech-first, retail green-only Non-Banking Financial Company dedicated to financing sustainable assets for individuals and small businesses. We provide specialised financing exclusively for green projects to individuals and businesses, across electric vehicles (two-wheelers and three-wheelers), residential rooftop solar, and SME solutions including commercial and industrial rooftop solar, energy-efficient equipment, and supply chain finance.
Our larger objective is to accelerate India’s transition to a net-zero carbon economy by driving credit penetration at the grassroots level and making green assets accessible through seamless digital processes. With a presence across 26 states and over 500 cities, and a customer base exceeding 1,50,000, Ecofy continues to play a meaningful role in scaling retail green adoption nationwide.
What is Ecofy’s revenue model and what are the key pillars of its GTM strategy?
Our core business model is classic retail lending. We generate income primarily from interest on loans originated across green asset classes, along with processing and service fees, while maintaining high capital efficiency and asset quality through digital-first operations.
We follow a structured three-tier Go-To-Market strategy. First, we maintain a strict green-only focus, directing 100% of our lending capital towards green projects, decarbonising assets such as EVs, rooftop solar, and green upgrades for SME upgrades. This gives us a clear and category-defining position as a specialised green lender. Second, partnerships form the core of our origination model.
We work through a top-down approach with leading OEMs, dealers, solar installers, and ecosystem players to integrate financing at the point of sale. Third, as a digital NBFC, we leverage proprietary AI/ML models and a Business Rule Engine alongside automated underwriting to deliver instant credit assessments and tailored cash-flow solutions at scale, ensuring a seamless customer experience.
Why Tier II and III cities are emerging as important markets for rooftop solar?
Tier-II and Tier-III cities are seeing stronger interest in rooftop solar as awareness of its economic benefits increases. The larger presence of independent homes, suitable rooftops, and small businesses creates a natural addressable market, while rising electricity costs are encouraging consumers to explore alternatives.
Government support through the PM Surya Ghar: Muft Bijli Yojana is also helping improve affordability and awareness. The combination of favourable housing patterns, rising consumer interest, and policy support is making rooftop solar increasingly relevant across these markets.
What is driving adoption in smaller cities, from rising power costs and long-term savings to energy independence?
In smaller cities, the decision to install rooftop solar is largely driven by the economics of the investment. Homeowners and small businesses are looking at the expected reduction in electricity expenses, payback periods, and long-term value of the system. As consumers become familiar with the technology and installation process, the decision is increasingly being evaluated on measurable financial outcomes rather than just environmental benefits.
How access to financing is helping address the upfront cost barrier for households and businesses?
Financing plays an important role in making rooftop solar accessible by allowing customers to spread the investment across manageable tenures rather than paying the full amount upfront. This helps customers evaluate the monthly repayment alongside the savings they can generate through lower electricity costs.
The wider lending ecosystem, including specialised private lenders, can complement these initiatives by providing financing options suited to different customer segments. Clear financing terms also help customers make informed decisions based on their expected monthly outgoings and savings.
What is different about the solar consumer in Tier II and III markets compared with metros?
Customer priorities vary across these markets. In metros, environmental benefits and energy efficiency can carry significant weight alongside financial considerations. In smaller cities, the economic value of the investment tends to be a stronger consideration.
Trust is another important factor in Tier II and Tier III markets. Customers often rely on local installers, dealers, and recommendations from their communities. As a result, the credibility of the local partner and the quality of installation can significantly influence the customer’s decision.
What is the role of awareness, financing, and ease of installation in accelerating adoption?
All three play a distinct role in converting interest into adoption. Awareness helps customers understand the benefits and economics of rooftop solar, financing makes the investment easier to manage, and a well-coordinated installation process ensures that the customer can move from decision to commissioning without any delays.
The industry therefore needs to focus not only on generating awareness, but also on simplifying the journey across financing, installation and grid connection. This will be particularly important as adoption expands across new markets.
What emerging demand patterns is Ecofy seeing across non-metro markets?
We are seeing customers move from broad questions about rooftop solar to more specific questions around implementation. They want to understand the appropriate system size, expected savings, net cost after subsidy and timelines for financing and installation.
There is also growing interest from MSMEs and commercial establishments, where electricity is a significant operating expense. For these customers, rooftop solar is increasingly being evaluated as a way to manage recurring energy costs and improve cost predictability.
Why could the next phase of India’s rooftop solar growth increasingly come from smaller cities and towns?
The scale of rooftop solar adoption in India shows that the opportunity is already significant. As of July 2026, nearly 40 lakh rooftop solar systems had been installed under PM Surya Ghar, benefiting over 48 lakh households.
The next opportunity lies in taking this momentum deeper into smaller cities and towns, where a large base of independent homes, commercial properties, and small businesses remains to be addressed. With improving digital access, financing options, and local partner networks, Tier-II and Tier-III markets can become an important contributor to the next phase of India’s rooftop solar growth.
What needs to change across financing, awareness, and the wider ecosystem to unlock this opportunity at scale?
The focus now needs to be on making the entire adoption journey simpler and more predictable. Customers need transparent financing, clear information on system sizing, warranties and expected performance, as well as reliable installation and after-sales support.
At the ecosystem level, stronger coordination between lenders, installers, OEMs, DISCOMs, and regulators will be important. Greater alignment across these stakeholders can help reduce friction and improve execution as rooftop solar expands into more markets.
