India Solar Power Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, India Solar Power Market 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

Solar power is the energy generated by capturing sunlight and converting it to electricity or heat. This is accomplished through technologies such as photovoltaic (PV) cells (also known as 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. India solar power market is being driven by increasing government initiatives, reducing solar costs, growing energy demand and need for grid decentralization, growing concern regarding the environment, technological advancement and increasing investment by the public and private entities.

However, the competition from conventional energy sources is a major restraining factor for the expansion of India 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

The increasing government initiatives are expected to florish the expansion of the market over the forecast period. The Indian government has adopted several measures and regulations to penetrate the expansion of the industry.

These projects’ objective is 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, with the present goal of achieving 500 GW of renewable energy capacity by 2030. The initiatives also helped ground solar work such as the construction of 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. Furthermore, 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 have a positive impact on the market, driving growth during the forecast period.

India Solar Power Market: Recent Development

India 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 market presence of the company in India solar power market and gained its 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 hurdle for the market expansion. India is significantly reliant 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. Coal power plants, once developed, have low operating costs and are considered cost-effective. Thus, this is expected to hamper the market 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 in place, 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 growing at a rapid rate. The expansion of the market is attributable to the growing emphasis on energy security and grid stability. By offering dispatchable power, which is essential for maintaining grid stability, CSP can assist in mitigating the intermittent nature of solar power. 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 the India solar power market. The improvement of industrial competitiveness through the development of photovoltaic power distribution systems, the dynamic nature of solar module prices influenced by market demand, and the decreasing profitability of module manufacturers leading to price reductions are some of the factors driving the increase in the industrial segments.

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

Homeowners have also been urged to purchase solar panels by government programs and incentives designed to stimulate solar energy installations in homes. Furthermore, residential customers may now 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, the rising government initiatives drive the expansion of the market 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