India Solar Energy Market 2024–2033

Reports Description

The India Solar Energy Market was estimated at USD 38 billion in 2022 and is anticipated to reach around USD 238 billion by 2030, growing at a CAGR of roughly 40% between 2023 and 2032. Our research report offers a 360-degree view of the India Solar Energy market’s drivers and restraints, coupled with the impact they have on demand during the projection period. Also, the report examines opportunities and competitive analysis for the India Solar Energy market.

• Due to its size and tremendous potential for growth and development, India’s energy demand is anticipated to rise more than any other nation in the next decades. The majority of this additional energy demand must therefore be satisfied by renewable, low-carbon sources. A significant turning point in the global fight to tackle climate change has been reached with India’s announcement that it plans to attain net zero carbon emissions by 2070 as well as to meet 50% of its electricity needs from renewable sources by 2030.
• India’s market for renewable energy ranks fourth globally in terms of attractiveness. As of 2020, India’s installed capacity for renewable energy was fourth overall, sixth for solar power and fourth for wind power. With a CAGR of 15.92% between FY16 and FY22, installed renewable power generation capacity has accelerated during the past several years. With new capacity predicted to double by 2026, India is the market with the fastest growth in renewable electricity.
• By 2030, the nation wants to have installed 450 Gigawatts (GW) of renewable energy, of which 280 GW (more than 60%) will be solar. Between March 2014 and March 2021, the installed capacity of solar energy expanded by more than 18 times, from 2.63 GW to 49.3 GW. India has increased its solar power capacity by 12 GW through November 2022.
• Some of the recent key investments and developments in India’s renewable energy sector are:
  • The largest pension company in Norway, KLP, and Norfund, which run the Norwegian Climate Investment Fund, entered into a deal in August 2022 to purchase a 49% stake in a 420 MW solar power facility in Rajasthan for Rs. 2.8 billion (US$ 35.05 million).
  • In the first half of 2022, India produced 47.64 BU of solar energy, a 34% YoY increase.
  • A record US$ 14.5 billion was invested in renewable energy in India in FY22, a 125% increase over FY21.
  • The Indira Gandhi International Airport in Delhi is now the first airport in India to run solely on hydroelectric and solar energy.
  • The onsite solar power plants provide about 6% of the airport’s electricity needs.
  • With an investment of Rs. 12,000 crores (US$1.53 billion), Ayana Renewable Power Pvt Ltd (Ayana) announced intentions to build 2 GWs of renewable energy projects in Karnataka.
  • On the EY Renewable Energy Country Attractive Index 2021, India came third.

Report Scope

The India Solar Energy market research report offers an in-depth analysis of the country’s market size, which is further segmented into segmentation market growth. Also, it provides the market share, sales analysis, competitive landscape, the impact of domestic and global market participants, trade regulations, value chain optimization, recent key developments, strategic market growth analysis, opportunities analysis, product launches, and technological innovations. The scope of the study includes market sizing and forecast for segmentation by technology and application.

Report Scope

Key Market Dynamics

• Over the past two decades, there has been a substantial shift in the world’s energy balance. Energy supply and demand were balanced as a result of increased energy efficiency. Utilizing renewable energy sources has a greater overall cost than conventional energy sources.
• But as renewable technology advances, it is challenging fossil fuel-based power plants.
• From an investor’s point of view, the sector has become more appealing due to the government’s enhanced assistance and improved economic conditions. Renewable energy adoption was prompted by low carbon emissions from these sources and rising environmental protection concerns, which increased global investments in renewable energy. The country’s solar energy sector is receiving more investments as a result of the growing emphasis on renewable energy sources, which will fuel the expansion of the Indian solar power market throughout the course of the forecast period.
• High costs and unpredictability have hampered the use of renewable energy sources. By incorporating energy storage into the system, it is possible to overcome the intermittent nature of solar energy, increasing the use of renewable energy in hybrid systems. In India, the cost of renewable energy has been steadily declining. Additionally, the Indian government offers tax breaks to customers, lowering installation expenses and the overall cost of solar energy. As a result, solar energy has been providing fossil fuels like coal-based power in the nation’s fierce competition.
• India is a prospective market for solar energy and may import solar panels from China at incredibly low prices, which would enhance solar power system sales in India and boost demand for solar energy among renewable sources. As a result, during the projection period, the growing solar power market in India would be fueled by the falling costs of solar energy.

Solar PV led the India Solar Energy Market in 2021

• Due to the decreasing cost of solar modules and the adaptability of these systems for several uses, including electricity production and water heating, the solar PV category is anticipated to hold the biggest market share over the projection period.
• The installed solar PV capacity in India increased from 34.86 GW in 2019 to around 38.98 GW in 2020, according to the International Renewable Energy Agency (IRENA), marking a gain of almost 11% over the course of the year. Large-scale solar PV installation deployments in India, notably for utility projects, were the cause of the growth. The Indian government has additional plans to boost the installed solar PV capacity.
• In order to perform the evaluation research for Phase II of the Grid Connected Rooftop Solar Program, MNRE issued an Expression of Interest in December 2021.
• The initiative is a component of the National Solar Mission, which seeks to develop grid-connected rooftop solar installation systems with a 40 GW capacity by 2022.
• Reliance Industries and the Gujarat government entered into an agreement in January 2022 to invest INR 5 lakh crore in Gujarat over a 10- to 15-year period to build 100 GW of green energy power plants and a green hydrogen ecosystem. Utility-scale solar power plants are a type of renewable energy power plant. For the forthcoming renewable projects, RIL expects to spend INR 60,000 crore setting up production facilities for solar PV modules, batteries, electrolyzers, and fuel cells.
• The solar PV category is anticipated to hold the largest market share in India during the forecast period as a result of these developments.

Competitive Landscape

The competitive landscape of the India Solar Energy industry gives information about the competitors. The company’s financials, revenue generated, market potential, investment in technology, presence, new market initiatives, players’ capacities, plant locations, company strengths and weaknesses, product release, product width and breadth, and application dominance are among the details that are included. The data points mentioned above only pertain to the companies’ market focus on India Solar Energy.

• 2022: The Uttar Pradesh New and Renewable Energy Development Agency sponsored a bid process for a 125 MW solar project, and SJVN (Satluj Jal Vidyut Nigam Ltd) won it (UPNEDA). There are grid-connected solar projects totaling 75 MW in Jalaun and 50 MW in the Kanpur Dehat districts.

List of the prominent players in the India Solar Energy market:

• ABB Ltd.
• Adani Enterprises Ltd.
• ACME Solar
• Azure Power
• Canadian Solar Inc.
• Huawei Investment and Holding Co. Ltd.
• GCL System Integration Technology Co. Ltd.
• JA Solar Technology Co. Ltd.
• Sterling and Wilson Solar Ltd.
• juwi AG
• Others

The India Solar Energy market is segmented as follows:

By Technology

• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)

By Application

• Residential
• Commercial
• Industrial

On the basis of Geography

• India