India Small Wind and Solar Generator Market 2024–2033

Reports Description

India Small Wind and Solar Generator Market was valued at USD 22.6 Million in 2024 and is expected to reach USD 28.3 Million by 2033, at a CAGR of 2.16% during the forecast period 2024 – 2033.

A small wind and solar generator is a hybrid system that combines wind and solar power to generate electricity. Small wind turbines typically have a capacity of up to 100 kW, while solar generators can range from a few watts to tens of kilowatts.

These systems are becoming increasingly popular due to rising energy costs, government incentives for renewable energy, and growing awareness of environmental sustainability. The small wind and solar generator market is expected to grow significantly in the coming years.

India Small Wind and Solar Generator Market: Growth Factors

Government Incentives and Policies

India’s government has been actively promoting renewable energy sources like small wind and solar through various incentives and policies. Schemes like the Jawaharlal Nehru National Solar Mission (JNNSM) and the National Wind-Solar Hybrid Policy aim to increase the deployment of renewable energy systems.

The government’s ambitious target of achieving 175 GW of renewable energy capacity by 2022, including 100 GW of solar and 60 GW of wind, is a significant driver for the small wind and solar Generator market.

According to the Ministry of New and Renewable Energy (MNRE), India had achieved a cumulative renewable energy capacity of 100.02 GW by November 2021, with solar and wind energy contributing significantly to this capacity. This indicates a strong push towards renewable energy adoption.

Increasing Energy Demand and Rural Electrification

In rural areas of India, where grid connectivity is often unreliable or non-existent, small wind and solar generators offer a viable off-grid solution for meeting electricity needs. These systems provide access to clean and sustainable power, thus improving living standards and enabling economic activities in rural communities.

The government’s focus on electrifying rural areas through schemes like the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and the Saubhagya scheme further drives the demand for decentralized renewable energy solutions.

As per government reports, over 26.4 million households were electrified under the Saubhagya scheme by March 2021, demonstrating the immense potential for small wind and solar systems to cater to rural energy needs.

India Small Wind and Solar Generator Market: Restraints

Intermittency and Reliability Issues

One of the key challenges facing small wind and solar systems is their intermittency, dependent on weather conditions. This intermittency poses reliability issues, especially for critical applications or industries requiring continuous power supply.

According to data from the Central Electricity Authority (CEA), renewable energy sources, including wind and solar, accounted for around 23% of India’s total installed capacity in March 2021.

However, the variability in generation from renewables necessitates backup power sources, which can add to the overall cost of energy provision.

High Initial Investment and Financing Challenges

Despite government incentives, the initial capital investment required for installing small wind and solar generators remains relatively high for individual consumers and small businesses. Limited access to financing options and lack of awareness about available subsidies often act as barriers to adoption.

The Reserve Bank of India (RBI) reports that financing challenges hinder the growth of renewable energy projects in India. Difficulty in accessing affordable financing options constrains the proliferation of small wind and solar generators, particularly among rural and economically disadvantaged communities.

India Small Wind and Solar Generator Market: Opportunities

Off-Grid and Remote Applications

The rise of microgrid systems presents a significant opportunity for small wind and solar generators in India. Microgrids offer localized and decentralized energy solutions, providing resilience against grid failures and enabling energy independence for communities, industries, and institutions.

The Indian government’s Smart Grid Mission emphasizes the development of microgrids to enhance energy access and reliability, presenting a favorable environment for the integration of small wind and solar generators into these systems.

Technological Advancements and Innovation

Continuous advancements in technology, such as improved battery storage, smart grids, and efficient energy conversion systems, present significant opportunities for the small wind and solar market in India.

Innovations in hybrid systems combining wind and solar generation, along with energy management solutions, can enhance system efficiency and reliability, further driving market growth and adoption.

Research and development initiatives supported by organizations like the Indian Institute of Science (IISc) and the Council of Scientific and Industrial Research (CSIR) contribute to innovation in renewable energy technologies, fostering the growth of the small wind and solar generator market in India.

India Small Wind and Solar Generator Market: Segmentation Analysis

India Small wind and Solar Generator market is segmented by Systems, Turbine and Installation Type. Based on systems, India small wind and solar Generator market is segmented into Wind turbine generation systems, Solar generation systems, Wind and solar (hybrid) power generation systems.

Among all these segments, Wind and solar (hybrid) power generation systems held the highest market share in 2023. This segment combines the benefits of both wind and solar energy, providing a more reliable and consistent power generation solution.

Hybrid systems can maximize energy production by utilizing both wind and solar resources, thus appealing to a broader range of consumers. Hybrid systems are gaining popularity due to their ability to offer increased energy reliability, efficiency, and flexibility.

As renewable energy technology advances and costs decrease, the adoption of hybrid systems is likely to accelerate.

Based on Turbines, India small wind and solar Generator market is segmented into Horizontal axis wind turbines and vertical axis wind turbines. Among all these segments, Horizontal axis wind turbines held the highest market share in 2023.

Horizontal axis wind turbines are the most commonly used type in large-scale wind power generation projects. They typically offer higher efficiency and power output compared to vertical axis turbines, making them the preferred choice for commercial applications.

Although horizontal axis turbines dominate the market, vertical axis turbines are gaining attention, especially in urban and residential settings. They have advantages such as being less affected by turbulent winds and having the ability to capture wind from any direction, which makes them suitable for smaller scale installations and niche applications.

Based on Installation Type, India small wind and solar Generator market is segmented into Domestic, Small-scale, and Commercial. Among all these segments, Commercial held the highest market share in 2023. Commercial installations typically involve larger-scale projects that contribute significantly to overall renewable energy capacity.

These installations can include utility-scale wind farms and solar parks, as well as commercial buildings with rooftop solar arrays. Commercial installations are often driven by government incentives, corporate sustainability goals, and the need to reduce operational costs.

Small-scale installations, including residential rooftop solar panels and small wind turbines, are experiencing rapid growth due to factors such as decreasing equipment costs, supportive government policies, and increasing awareness of environmental issues among homeowners and small business owners.

Additionally, advancements in technology are making small-scale renewable energy systems more accessible and affordable to a broader range of consumers.

Report Scope

India Small Wind and Solar Generator Market: Regional Insight

In India, the small wind and solar Generator market exhibits promising regional insights, driven by diverse factors across the nation. In states like Gujarat and Rajasthan, abundant sunlight and favourable policies have spurred significant solar adoption.

These regions boast extensive solar installations, ranging from rooftop setups to utility-scale projects, facilitated by state incentives and conducive regulatory frameworks. Conversely, in hilly terrains such as Himachal Pradesh and Uttarakhand, small wind power holds substantial potential.

The challenging topography limits conventional energy infrastructure, making small wind turbines an attractive alternative for decentralized energy generation. Local initiatives and government support aim to harness wind resources effectively in these regions, fostering sustainable development and energy self-sufficiency.

Moreover, coastal states like Tamil Nadu and Andhra Pradesh exhibit a balanced uptake of both solar and wind energy. With vast coastlines and consistent wind patterns, these areas host numerous wind farms alongside burgeoning solar installations.

Innovative hybrid solutions integrating wind and solar power further optimize energy generation, showcasing a holistic approach to renewable energy adoption. Overall, India’s small wind and solar Generator market reflects a dynamic landscape shaped by geographical diversity, policy interventions, and regional energy needs, underscoring the nation’s commitment to sustainable development and renewable energy transition.

India Small Wind and Solar Generator Market: Recent Developments

• In February 2024, Mahindra Renewables Launched Small Wind Turbine Series. Mahindra Renewables, a leading renewable energy player in India, launched a new series of small wind turbines specifically designed for the distributed power market. These turbines are ideal for rural applications, farms, and small businesses, offering a clean and reliable power source in areas with limited grid connectivity.

• In January 2024, the Government announced the Revamped KUSUM Scheme. The Ministry of New and Renewable Energy (MNRE) announced a revamped KUSUM (Kisan Urja Suraksha evam Utthan Mahaabhiyaan) scheme to boost solar power adoption in the agriculture sector. The scheme offers subsidies for farmers to install small solar power plants on their land, enabling them to meet their irrigation needs and potentially sell surplus power back to the grid.

• In December 2023, Local Startup Bags Investment for Off-grid Solar Solutions. A promising Indian startup focused on providing off-grid solar solutions for rural communities secured funding from a leading venture capital firm. This investment will likely fuel the company’s expansion, making it easier for remote areas to access clean and affordable solar power for lighting, appliances, and basic needs.

• In November 2023, Major EPC Company Announced Collaboration for a Small Wind Project. A major Engineering, Procurement, and Construction (EPC) company in India joined forces with a small wind turbine manufacturer to develop a distributed wind power project. This collaboration highlights the growing interest in integrating small wind solutions into larger renewable energy projects, potentially offering a more comprehensive clean energy mix.

List of the prominent players in the India Small wind and Solar Generator Market:

• Avantgarde
• Enercon
• LAVANCHA RENEWABLE ENERGY PVT. LTD.
• Revayu Energy
• SPITZEN ENERGY SOLUTIONS PVT. LTD.
• SUNAIR POWER PVT. LTD.
• SUZLON ENERGY LIMITED
• Unitron Energy
• Vestas
• WINDSTREAM TECHNOLOGIES INC.
• Others

These key players are adopting various organic and inorganic growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Small wind and Solar Generator Market is segmented as follows:

By System

• Wind Turbine Generation System
• Solar Generation System
• Wind And Solar (Hybrid) Power Generation System

By Turbine

• Horizontal Axis Wind Turbine
• Vertical Axis Wind Turbine

By Installation Type

• Domestic
• Small-Scale
• Commercial