Market Size of India Solar Energy Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | 19.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Solar in India Market Analysis
The India Solar Energy Market is expected to register a CAGR of 19.80% during the forecast period.
India's solar market is estimated to be at 79.07 GW by the end of this year and is projected to reach 195.11 GW after five years.
- Over the medium term, the Indian solar energy market is growing owing to the cost of solar power technology declining, solar systems becoming more flexible, and solar power is a greener way to make electricity. The market is also propelled by supportive government policies, particularly the Ministry of New and Renewable Energy (MNRE) plans to encourage renewable-based power generation.
- On the other hand, the solar energy market is restrained by issues like transmission and distribution losses and unpredictability in the continuity of power supply.
- Nevertheless, India has a lot of solar irradiance and gets solar energy all year. This means there are many places in the sunniest parts of the country, like Rajasthan, Gujarat, and Andhra Pradesh, where solar energy can be used. This, along with foreign investment and a lot of research and development projects to improve the technology, gives the Indian solar energy market a lot of chances to grow.
Solar in India Industry Segmentation
Solar power is the conversion of solar energy into thermal or electrical energy. Solar energy is the cleanest and most abundant renewable energy source accessible, and it may be used to generate electricity, provide light or a comfortable interior environment, and heat water for home, commercial, or industrial purposes.
The Indian solar energy market is segmented by technology into solar photovoltaic (PV) and concentrated solar power (CSP). For each segment, the installed capacity and forecasts have been done based on gigawatts (GW).
| Technology | |
| Solar Photovoltaic (PV) | |
| Concentrated Solar Power (CSP) |
India Solar Energy Market Size Summary
The Indian solar energy market is experiencing significant growth, driven by declining costs of solar power technology and supportive government policies. The Ministry of New and Renewable Energy (MNRE) is actively promoting renewable-based power generation, which is bolstering the market's expansion. Despite challenges such as transmission losses and power supply unpredictability, India's abundant solar irradiance, particularly in states like Rajasthan, Gujarat, and Andhra Pradesh, offers substantial opportunities for growth. The market is further supported by foreign investments and ongoing research and development projects aimed at enhancing solar technology. The solar photovoltaic (PV) segment is anticipated to dominate the market share due to decreasing costs and versatile applications, including electricity generation and water heating.
Government initiatives and policies are pivotal in increasing the solar energy share in India's renewable power generation mix. The MNRE's national wind-solar hybrid policy and various schemes like the Solar Park Scheme and the 500 MW Viability Gap Funding Scheme are designed to enhance grid stability and optimize land use. Additionally, Delhi's Solar Policy 2022 aims to significantly boost solar capacity, increasing its share in the city's electricity demand. The market is characterized by fragmentation, with major players such as Adani Enterprises Ltd., JinkoSolar Holdings Co. Ltd., and Azure Power Global Limited actively participating. Recent agreements and projects, including those involving international financial institutions and companies like Amazon India, underscore the commitment to expanding solar energy capacity, aligning with India's broader renewable energy goals.
India Solar Energy Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Solar Energy Installed Capacity and Forecast, in GW, till 2028
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1.3 Government Policies and Regulations
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1.4 Recent Trends and Developments
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.1.1 Supportive Government Policies for Developing Solar Energy
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1.5.1.2 Declining Cost of Solar Power Technology
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1.5.2 Restraints
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1.5.2.1 Unpredictability in the Continuity of Power Supply
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Technology
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2.1.1 Solar Photovoltaic (PV)
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2.1.2 Concentrated Solar Power (CSP)
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India Solar Energy Market Size FAQs
What is the current India Solar Energy Market size?
The India Solar Energy Market is projected to register a CAGR of 19.80% during the forecast period (2024-2029)
Who are the key players in India Solar Energy Market?
Adani Enterprises Ltd, Jinko Solar Holdings Co. Ltd, First Solar Inc., Azure Power Global Limited and Emmvee Photovoltaic Power Private Limited are the major companies operating in the India Solar Energy Market.
