India Solar Energy Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)
Get a Comprehensive Overview of the India Solar Energy Market Report Prepared by P&S Intelligence, Segmented by Technology (Solar Photovoltaic, Concentrated Solar Power), Application (Residential, Commercial, Industrial), and Geographic Regions. This Report Provides Insights From 2017 to 2030.
India Solar Energy Market Data
Market Statistics
Study Period | 2017 - 2030 |
2023 Market Size | USD 10.4 Billion |
2024 Market Size | USD 11.7 Billion |
2030 Forecast | USD 24.9 Billion |
Growth Rate (CAGR) | 13.4% |
Largest Technology Category | Solar PV |
Largest Application Category | Industrial |
Nature of the Market | Consolidated |
Market Size Comparison
Key Players
Key Report Highlights
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Explore the market potential with our data-driven report
India Solar Energy Market Analysis
The Indian solar energy market generated revenue of USD 10.4 billion in 2023, which is expected to witness a CAGR of 13.4% during 2024–2030, to reach USD 24.9 billion by 2030. The primary reason for the growth is the government’s policies and initiatives, which have increased awareness about solar energy adoption.
- Moreover, regulatory support, organized framework, subsidies, and monetary support are being provided by the National Solar Mission (NSM) and other state organizations.
- The Ministry of New and Renewable Energy (MNRE) has plans to increase the proportion of renewable energy in the total energy mix, which can be a significant factor.
- Many schemes have been launched by the government such as the CPSU Scheme, Solar Park Scheme, Defense Scheme, VGF Schemes, Bundling Scheme, Grid Connected Solar Rooftop Scheme, and Canal Bank and Canal Top Scheme. These schemes have a goal to increase the generation of solar power in India.
- Further, advances in solar technology, the cost-effectiveness of solar energy, and increasing energy demand are also adding fuel to the growth of the market.
- India’s geographical region gets around 5,000 trillion kWh of energy annually with most parts getting 4–7 kWh per sqm per day.
- International collaboration and foreign investments with several R&D projects are also happening to improve the technology, which, in turn, boosts the market.
- These collaborations add speed to solar projects and the development of the overall solar ecosystem, as they ultimately bring innovation, funding, and expertise.
- Renewable energy sources including solar power are currently being used as a result of a global focus on sustainable development and a growing awareness of environmental issues.
India Solar Energy Market Trends and Drivers
The market is being driven by the help of the Indian government through different strategies and techniques, which mirror a significant shift toward supportable and environmentally friendly power sources.
The National Solar Mission (NSM) was launched in 2010 with the objective of reaching 100 GW of solar capacity by 2022. The NSM is a significant task wherein states are locked in to address India's energy security challenges and advance ecologically practical development. This project serves as a guide, demonstrating the government's commitment to increasing solar energy use and creating an investment-friendly environment.
The project's overarching objective is to establish India as a global leader in solar energy by establishing the regulations required for the quickest possible nationwide adoption of solar technology. This is in line with India's Nationally Determined Contributions (NDCs) goal of reducing the GDP's emission intensity by 45% from 2005 levels by 2030 and obtaining approximately 50% of the total installed capacity for electric power from non-fossil fuel-based energy assets.
Clients are given tax cuts by the government, which diminishes the establishment costs and the general expense of solar energy. Because of the fierce competition in the country, fossil fuels like coal-based power are being replaced by solar energy.
Subsidies and financial incentives are the major components of making solar energy economically feasible for both individuals and businesses. These incentives not only help to pull investors but also support a large segment of the population to embrace solar technology which contributes to decentralized energy generation.
Power distribution organizations are needed under renewable purchase obligations (RPOs) to obtain a specific amount of energy from renewable sources like solar power. This regulatory tool provides solar manufacturers with a stable market by increasing the demand for solar energy. In addition, the government’s dedication to maintaining an appropriate policy climate provides investors and developers confidence to create an atmosphere that is favorable for sustained growth.
Another aspect of the government support is the development of solar parks. These solar parks act as special areas for big-scale solar projects, which offer essential infrastructure and streamline the development process of the project. These parks help in grid integration and promote effective land use, which makes it simpler for developers to set up and run solar power facilities.
In the past few years, the country has implemented different government initiatives to increase the shares of solar energy in India’s future renewable power generation mix. According to MNRE, as of February 2023, installed solar capacity in 2022 was 66.70 GW.
Moreover, the solar policy plan was approved by the Delhi government in December 2022. As per the policy, installed capacity will increase over the next two years from 2,000 MW to 6,000 MW. In three years, this will likely increase the annual electricity demand of Delhi from 9% to 25% solar energy.
During the five-year period, from FY 2017 to FY 2022, India’s renewable energy sector has expanded at a significant growth rate of 14%. Thus, India achieved a notable milestone with a total renewable energy capacity of 114 GW in September 2022.
Additionally, from overall capacity, approx. 51% constitutes solar power. From 4% in FY 2012 to 51% by September 2022, India's share of solar installations has grown at a CAGR of 29% over the past decade.
India Solar Energy Industry Outlook
Solar Photovoltaic (PV) Category Dominates the Market
Based on technology, solar photovoltaic (PV) is dominating the market, with a share of around 75% in 2023. This dominancy is due to the inexpensive solar modules and the adoption of solar PVs for multiple uses like water heating and electricity production.
- According to the International Renewable Energy Agency (IRENA), India has seen increased solar PV capacity from 34.86 GW in 2019 to 38.98 GW in 2020 which reflects a gain of approx. 11% in only one year. Large-scale solar PV installations in India for utility projects are also adding fuel to the growth of the market.
- MNRE released an expression of interest in December 2021 to conduct the assessment study for phase II of the grid-connected rooftop solar program.
- This effort is the part of National Solar Mission whose aim was to create 40 GW worth of grid-connected rooftop solar installation systems by 2022.
- According to MNRE, India had 5th position in the deployment of solar PV globally in 2022. Till 30th June 2023, installed solar power capacity reached around 70.10 GW.
- According to the National Institute of Solar Energy (NISE), India has a solar potential of around 748 GW, presuming that solar PV modules will cover 3% of bare land.
- The Gujarat Government and Reliance Industries had a deal in January 2022 to invest INR 5 lakh crore in Gujarat over a 10 to 15-year period to make green energy power plants of 100 GW and green hydrogen ecosystems.
- Reliance Industries Limited will spend around INR 60,000 crore for establishing production facilities for solar PV modules, electrolyzers, fuel cells, and batteries.
- The Indian government has implemented the PLI scheme under the National Programme on High-Efficiency Solar PV modules on a budget of Rs 24,000 crore. For five years after commissioning, this scheme offers a PLI to the approved solar PV module makers for the production and marketing of high-efficiency solar PV modules.
- Additionally, the Union Budget 2022–2023 allotted Rs 1,000 crores to the Solar Energy Corporation of India, which is presently in charge of the development of the whole renewable energy industry.
Industrial Category Leads the Market
Based on application, the industrial category holds the major market share. This is ascribed to the rapid industrialization in the country. With the increasing number of industries in India, the need for power is increasing.
Solar Energy Solutions Providing Companies in India:
- Azure Power Global Limited
- Aramco Asia India Pvt. Ltd.
- ADANI GROUP
- ABB Ltd.
- ACME Cleantech Solutions Pvt. Ltd.
- Canadian Solar Inc.
- Huawei Technologies Co. Ltd
- GCL System Integration Technology Co. Ltd.
- JA Solar Technology Co. Ltd.
- Sterling and Wilson Renewable Energy Ltd.
- JUWI GmbH
India Solar Energy Companies News
- In January 2024, the Prime Minister of India announced the Pradhan Mantri Suryoday Yojana to install rooftop solar panels in one crore households.
- According to the Central Electricity Authority, around 57% of power will be generated through renewable sources by 2027.
- According to the Union Minister for New and Renewable Energy and Power, India’s renewable energy sector attracted foreign direct investment from April 2020 to September 2023.
- Three solar farm projects with a combined clean energy capacity of 420 megawatts (MW) were announced by Amazon India in Rajasthan in September 2022.
- A 125-megawatt solar project was awarded to Satluj Jal Vidyut Nigam Ltd. in Uttar Pradesh after a bidding process by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).
- The first airport in India to run solely on hydroelectric and solar energy is the Indira Gandhi International Airport in Delhi.
- Around 6% of the airport’s electricity needs are fulfilled by onsite solar power plants.
- Ayana Renewable Power Pvt Ltd. announced plans to construct 2 gigawatts (GWs) of renewable energy projects in Karnataka for 12,000 crores ($1.53 billion).
Frequently Asked Questions About This Report
India solar energy market generated a value of USD 10.4 billion in 2023.
During 2024-2030, the solar energy market in India will grow at a 13.4% CAGR.
The India solar energy industry will reach a value of USD 24.9 billion in 2030.
Solar Photovoltaic (PV) is the largest technology type in the India solar energy market.
The government’s policies as well as initiatives, which have raised consciousness regarding solar energy acceptance are the major drivers for the solar energy market in India.
The Indian solar energy industry is witnessing strong competition, due to the presence of established foreign as well as domestic players vying for market share.
Industrial is the largest application area in the solar energy industry in India.
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