India Solar Power Market Size Likely to Surpass at a CAGR of 41.5% By 2033

As per the current market research conducted by the CMI Team, India Solar Power Market size is expected to record a CAGR of 41.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 45 Billion. By 2033, the valuation is anticipated to reach USD 1254 Billion.

India Solar Power Market: Overview

According to industry experts at CMI, solar power is a form of energy which are derived from the light of the sun.

The Indian solar market is being driven by several factors including the growing shift towards green energy, rising investment in the solar sector, increasing collaboration, rising government initiatives, growing adoption of solar panels in the residential sector and the growing industrialization in developing economies and rising infrastructure projects backed by the Indian governments.

However, the land acquisition and infrastructure challenge and competition from conventional sources of energy hamper the expansion of the Indian solar industry over the projected period.

India Solar Power Market: Growth Factors and Dynamics

Decreasing the cost of solar panels

The falling cost of solar panels, owing to technological improvements, economies of scale, and more competition, makes solar electricity cheaper and more appealing. For instance, the solar Levelized Cost of Electricity (LCOE) in India is currently lower than that of fossil fuels, indicating a significant advancement in the country’s renewable energy sector. Solar module prices in India have fallen by 82 to 85 percent over the previous fifteen years, resulting in a considerable reduction in solar electricity tariffs from more than Rs 17 per unit to less than Rs 2.5 per unit.

Support by public entities

The growing support by public entities drives the market expansion. In July 2024, the Asian Development Bank (ADB) funded $240.5 million for rooftop solar systems to increase access of electricity. This funding will support tranches 2 and 3 of the Multitranche Finance Facility (MFF) Solar Rooftop Investment Program approved in 2016. The program was redesigned in 2023 to focus on residential solar rooftop systems.

Supply chain and manufacturing limitations

The most used raw material of solar photovoltaic (PV) panels is silicon and India relies significantly on imports of silicon wafers. China controls global silicon production and processing, exposing supply chain vulnerabilities. Any disruptions in the worldwide silicon supply chain might create delays and cost increases for Indian manufacturers.

Furthermore, India relies on countries such as China, Taiwan, and Malaysia for polysilicon, a critical component in solar cell manufacturing. The global polysilicon scarcity, caused by growing demand for solar energy and supply chain interruptions, has the potential to impact solar panel production schedules and costs in India. Thus, the supply chain and manufacturing limitations might be hindering India solar power market.

Report Scope

India Solar Power Market: New Launches and Acquisitions

• In February 2024, Avaada Energy acquired 1400 MWp of solar projects in India through tenders issued by central and state government agencies.

List of the prominent players in the India Solar Power 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 Power Market is segmented as follows:

By Technology

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

By Application

• Residential
• Commercial
• Industrial