Rooftop solar photovoltaic (PV) systems have emerged as a key decentralized energy solution in response to rising electricity demand, climate change concerns, and the global shift toward low-carbon power generation. Despite favourable policies and falling technology costs, adoption in many regions remains suboptimal. This study investigates the techno-economic feasibility of 1 kW rooftop solar PV systems in Mysuru, Karnataka, India, an urban area with high solar potential, receiving an average Global Horizontal Irradiance (GHI) of approximately 5.5 kWh/m²/day across over 300 sunny days annually. A system configuration comprising monocrystalline or polycrystalline PV modules, a 1 kW inverter. The system is projected to generate 1,500–1,800 kWh annually, resulting in savings of up to ₹8,850 per year at the current residential tariff of ₹5.90/kWh. Installation costs range between ₹45,000 and ₹50,000, with government subsidies such as those under the PM Surya Ghar: Muft Bijli Yojana, potentially covering up to ₹78,000. The financial analysis indicates a payback period of 4–6 years and a return on investment of 15–20% over a 25-year operational lifespan, alongside annual carbon dioxide emission reductions of approximately 1 ton. While the system proves technically and economically viable, challenges persist, including upfront capital costs, limited public awareness, and spatial constraints. The study underscores the importance of policy support, public engagement, and community solar initiatives in scaling rooftop PV adoption and advancing India’s renewable energy transition.