Market Trends of India Solar Energy Industry
Solar PV Segment is Expected to Dominate the Market
- The solar PV segment is expected to have the biggest market share during the forecast period. This is because the cost of solar modules is decreasing, and these systems can be used for many different things, like making electricity and heating water.
- As per IRENA, India's installed solar PV capacity was around 62.8 GW in 2022, up from 49.3 GW in 2021. This was an increase of approximately 31% over the year. India put in a lot of solar PV installations, especially for utility projects, which led to growth. The Government of India plans to increase the solar PV installed capacity.
- The National Thermal Power Corporation Limited (NTPC) turned on a solar PV project near Hazira in Surat in August 2022. The Kawas solar PV project has a capacity of 56 MW; with this project, NTPC will increase its solar footprint to 68,454 MW of group-installed and commercial capacity. With the completion of these types of projects, the share of the solar PV segment in the Indian solar energy market is expected to increase in the forecast period.
- In January 2022, Reliance Industries (RIL) signed a pact with the Gujarat government to invest USD 80.61 billion in Gujarat over ten to fifteen years to set up 100 GW of renewable energy power plants and a green hydrogen ecosystem. At the utility scale, renewable energy power plants include solar power plants. RIL is expected to invest USD 8.12 billion in setting up manufacturing facilities for solar PV modules, electrolyzers, batteries, and fuel cells for upcoming renewable projects.
- Because of these changes, the solar PV segment is expected to have the biggest market share in India over the next few years.
Understand The Key Trends Shaping This Market
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Supportive Government Policies to Drive the Market
- In Recent years, the country planned various government initiatives to increase the solar energy share of India's future renewable power generation mix. According to Ministry of New and Renewable Energy, as of February 2023, the solar energy constitutes 66.70 GW installed capacity in 2022.
- According to the Ministry of New and Renewable Energy's (MNRE) national wind-solar hybrid policy, this policy is a framework for promoting large grid-connected wind-solar PV hybrid systems. These systems will reduce the unpredictability of renewable energy generation and improve grid stability while using land and transmission infrastructure best.
- Some other schemes implemented by the Ministry of New and Renewable Energy (MNRE) over the last three years are the Solar Park Scheme, the 300 MW Defense Scheme, and the 500 MW VGF (Viability Gap Funding) Scheme.
- The Delhi government approved its Solar Policy 2022 plan in December 2022. The plan calls for the installed capacity to go from 2,000 MW to 6,000 MW in the two years.Delhi's new solar policy aims to install 6,000 MW of solar capacity in the two years. This will likely bring the share of solar energy in Delhi's annual electricity demand from 9% to 25% in three years.
- Thus, with the upcoming government projects and supportive policies, solar energy developments are expected to boost the Indian solar energy market in the coming years.
