India Solar Power Market 2024–2033

Reports Description

The CMI Team’s most recent market research predicts that from 2024 to 2033, the India Solar Power Market will experience a CAGR of 41.5%. 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

Solar power captures sunlight and converts it to heat or electricity. It is accomplished through photovoltaic (PV) cells (solar panels) and solar thermal systems.

Photovoltaic cells catch sunlight and convert it directly into energy, whereas solar thermal systems heat fluids, which can subsequently generate electricity or heat. Solar power is a renewable energy source that has a minimal impact on the environment as it emits no air pollution or greenhouse gases.

It is becoming more popular as an alternative to fossil fuels as efficiency improves and installation prices decrease. Increased government initiatives, falling solar costs, rising energy demand and the need for grid decentralization, growing environmental concern, technological advancement, and increased investment by both public and private entities are driving the Indian solar power market.

However, competition from conventional energy sources is a major restraining factor in expanding the Indian solar power market over the projected period.

• AmpIn Energy Transition announced an investment of Rs. 3,100 crore (US$ 372.6 million) to establish renewable energy projects exceeding 600 MW and an integrated manufacturing facility for solar cells and modules across the Eastern region. The funding will be focused on West Bengal, Bihar, Odisha, Jharkhand, Chhattisgarh, and the Northeastern States.

• The Solar Energy Corporation of India (SECI) implemented large-scale central auctions for solar parks and has awarded contracts for 47 parks with over 25 GW of combined capacity.

India Solar Power Market: Growth Factors

Rising government initiatives

Increasing government initiatives are expected to flourish the market’s expansion over the forecast period. The Indian government has adopted several measures and regulations to penetrate the industry’s expansion.

These projects aim to meet renewable energy targets, reduce carbon emissions, and improve energy security. For instance, the National Solar Mission, launched in 2010 as part of the National Action Plan on Climate Change, seeks to position India as a global leader in solar energy.

Its ambitions have altered over time, but it still aims to achieve 500 GW of renewable energy capacity by 2030. The initiatives also helped ground solar work, such as constructing solar parks and rooftop systems.

Rising adoption of floating solar power plants

The increasing usage of floating solar power plants is a key driver of market expansion. Floating plants are one of the new technologies that are still in their early stages around the world. The primary advantage of a floating plant is that it may be built in either man-made or natural water bodies, such as dam reservoirs, lakes, municipal water storage ponds, and water treatment plants.

Additionally, floating systems outperform land-based arrays. The evaporating water in these floating power plants keeps them cooler than typical systems, allowing them to function more efficiently.

Other benefits of floating power plants include increased module life and improved solar panel efficiency due to the cooling impact. As a result, such factors positively impact the market, driving growth during the forecast period.

India Solar Power Market: Recent Development

India’s solar power market adopted several strategies, which include product launches, acquisitions, collaboration, expansion, and others. Some of the company strategies include:

• In October 2024, India and the International Solar Alliance (ISA) collaborated on the third High-level Conference on New Technologies for Clean Energy Transition. The conference’s goals were to Translate dialogue into action, foster collaboration and knowledge sharing, and Make progress toward global climate goals.

• In March 2024, BluPine Energy, a renewable energy company backed by Actis, acquired 369 MW of solar assets from the Acme Group, expanding its total renewable capacity to 2.4 GW in India. This acquisition demonstrates BluPine Energy’s commitment to fostering a sustainable future through renewable energy solutions in India.

These product launches and collaboration strategies have expanded the company’s market presence in the Indian solar power market and given it a competitive edge. 

COMPARATIVE ANALYSIS OF THE RELATED MARKET

India Solar Power Market: Challenge

Competition from conventional energy source

Competition from traditional energy sources, particularly coal, is a major market expansion hurdle. India significantly relies on coal for electrical generation, with coal-fired facilities providing more than 70% of the country’s power.

Coal is a mature and established energy source with substantial infrastructure, making it difficult to switch to renewables quickly. Once developed, coal power plants have low operating costs and are considered cost-effective. Thus, this is expected to hamper the market’s growth.

India Solar Power Market: Category-Wise Insights

By Technology:

The Solar Photovoltaic (PV) segment dominates the market. With an installed capacity of more than 50 GW by 2023, India has emerged as one of the world’s largest solar power markets. By 2030, the country hopes to have 500 GW of renewable energy capacity, with solar PV playing a significant role. This considerable rise in installed capacity has directly impacted the solar PV market’s revenue growth.

Besides, the Concentrated Solar Power (CSP) segment is growing rapidly. The market expansion is attributable to the growing emphasis on energy security and grid stability. By offering dispatchable power, essential for maintaining grid stability, CSP can assist in mitigating solar power’s intermittent nature. CSP can be crucial in supplying reliable electricity as India seeks to raise the proportion of renewable energy in its energy mix.

By Application:

The industrial segment captures a prominent market share in India’s solar power market. Some of the things that are causing the industrial segment to grow are the development of photovoltaic power distribution systems, which have made businesses more competitive, the fact that the prices of solar modules change based on market demand, and the fact that module manufacturers are losing money, which causes prices to go down.

Besides, the residential segment shows rapid expansion. The need for solar PV panels in residential buildings has grown due to homeowners’ growing awareness of and acceptance of renewable energy sources.

Government programs and incentives designed to stimulate solar energy installations in homes have also urged homeowners to purchase solar panels. Furthermore, residential customers may more easily install solar PV systems on their rooftops because of the declining cost of solar technology and the availability of financing alternatives.

Report Scope

India Solar Power Market: Country Analysis

North India dominates the India solar power market. High levels of sun radiation are advantageous in North India, particularly in areas like Rajasthan, which have some of the highest amounts of solar radiation in the nation.

Because of this, the area is perfect for both modest rooftop solar systems and large-scale solar photovoltaic (PV) facilities. Furthermore, rising government initiatives are driving the market’s expansion in the area.

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