| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| India Solar PV Module Market Size 2024 |
USD 8043 million |
| India Solar PV Module Market, CAGR |
9.3% |
| India Solar PV Module Market Size 2032 |
USD 16382.46 million |
Market Overview:
The India Solar PV Module Market is projected to grow from USD 8043 million in 2024 to an estimated USD 16382.46 million by 2032, with a compound annual growth rate (CAGR) of 9.3% from 2024 to 2032.
The India solar PV module market is primarily driven by the government’s strong push towards renewable energy to reduce dependence on fossil fuels and address climate change. Key initiatives, such as the National Solar Mission, provide incentives for solar power adoption and encourage investment in solar infrastructure. Additionally, India’s high solar potential—due to its vast geographical area and high solar insolation—makes solar PV an ideal renewable energy source. The decreasing cost of solar PV modules, driven by advancements in manufacturing technology and economies of scale, is also making solar energy more affordable. Corporate and industrial sectors are increasingly adopting solar power as part of their sustainability efforts, spurred by renewable purchase obligations (RPOs) and other government mandates. As the demand for clean energy grows, the solar PV module market in India is expected to continue its upward trajectory.
Regionally, India’s solar PV module market is dominated by states with favorable sunlight conditions and robust government support. States like Rajasthan, Gujarat, and Maharashtra lead in installed solar capacity due to high solar insolation and large land areas suitable for solar farms. Rajasthan, known for its desert regions, benefits from some of the highest levels of solar radiation, making it an ideal location for large-scale solar projects. Gujarat is a prominent player due to its supportive government policies, such as subsidies for solar energy projects and incentives for rooftop solar installations. Maharashtra is also a key market, particularly in urban areas where rooftop solar is gaining traction. Southern states, including Tamil Nadu and Karnataka, are seeing growth in solar PV installations due to state-level policies and corporate adoption of solar power. As state governments continue to promote solar energy through various incentives and policies, solar PV module installations are expected to increase across these regions, driving regional growth in the Indian solar PV module market.
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Market Drivers:
Government Initiatives and Policy Support:
A primary driver of the India solar PV module market is the strong government support through various initiatives and policies aimed at promoting renewable energy. Programs such as the National Solar Mission and the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme provide financial incentives, subsidies, and tax benefits to encourage the adoption of solar energy. The National Solar Mission, for instance, has set ambitious targets to achieve substantial solar power capacity, promoting the deployment of solar PV modules across large-scale solar farms, residential rooftops, and commercial facilities. For instance, according to the India PV Module Intelligence Brief Q2 2024, the total module demand during Q2 was estimated to be 4,575 MWp, with utility scale accounting for 1,162 MWp (25%), open access 1,574 MWp (34%), rooftop 1,264 MWp (28%), and off-grid solar 575 MWp (13%). These initiatives reduce upfront costs, making solar projects more financially viable and spurring greater investment from both domestic and international players in the solar PV module market.
Rising Demand for Clean and Renewable Energy:
India’s growing energy demand, coupled with increasing environmental concerns, is driving the transition towards clean and renewable energy sources. With a significant portion of India’s energy traditionally generated from coal, there is a strong push to diversify the energy mix and reduce greenhouse gas emissions. Solar energy, being abundant and cost-effective, presents an ideal solution to meet the country’s energy needs sustainably. Additionally, India has committed to achieving net-zero carbon emissions by 2070, further intensifying the focus on solar power as a primary renewable resource. For instance, data from the Photovoltaic Manufacturing Outlook in India report indicates that as of November 2021, India had a cell manufacturing capacity of 4.3 GW and a module manufacturing capacity of approximately 18 GW. As the country prioritizes clean energy development, the demand for solar PV modules is expected to grow, making solar power a key contributor to India’s long-term energy security.
Declining Costs of Solar PV Modules:
The decreasing cost of solar PV modules is another key factor driving market growth in India. Technological advancements in solar manufacturing, along with economies of scale achieved by major producers, have led to a steady reduction in module costs over the past decade. India has also benefited from competitive pricing due to increased local production and government policies aimed at supporting domestic manufacturing, such as the Production Linked Incentive (PLI) scheme. As module prices continue to decline, solar power becomes increasingly affordable for a wide range of applications, from utility-scale solar farms to residential rooftop systems. This affordability encourages broader adoption of solar PV modules across various sectors, accelerating the market’s growth trajectory.
Corporate Sustainability Goals and Renewable Purchase Obligations:
Corporate and industrial sectors in India are playing a significant role in the adoption of solar PV modules, driven by sustainability goals and renewable purchase obligations (RPOs). Many companies are investing in solar power to reduce their carbon footprints, lower operational costs, and meet regulatory requirements for renewable energy usage. RPO mandates require businesses to source a certain percentage of their energy from renewable sources, with solar being a preferred option due to its scalability and cost-effectiveness. Additionally, an increasing number of companies are setting ambitious sustainability targets, with solar PV installations forming a crucial component of their renewable energy strategies. As more businesses commit to renewable energy and environmental stewardship, the demand for solar PV modules in India is projected to rise, supporting the market’s expansion in both the short and long term.
Market Trends:
Growth of Domestic Manufacturing and Local Sourcing:
One of the significant trends in the India solar PV module market is the emphasis on expanding domestic manufacturing. To reduce dependence on imported solar modules, the Indian government has introduced several incentives aimed at boosting local production. Initiatives such as the Production Linked Incentive (PLI) scheme encourage Indian companies to establish and expand solar PV manufacturing facilities by providing financial support tied to production output. For instance, the PLI scheme for High Efficiency Solar PV Modules has an outlay of Rs. 24,000 crore and aims to build up solar PV manufacturing capacity of high efficiency modules. As a result, many local manufacturers are increasing their production capacities, which not only supports the market’s growth but also helps stabilize module costs by reducing reliance on imported materials. This trend aligns with the “Make in India” initiative, enhancing India’s self-sufficiency in solar energy technology.
Advances in Solar Technology and Efficiency:
The Indian solar PV module market is experiencing a shift towards advanced solar technologies that improve efficiency and power output. Innovations such as bifacial modules, which capture sunlight on both sides, and PERC (Passivated Emitter and Rear Cell) technology, which enhances cell efficiency, are gaining traction in the market. These advancements allow solar panels to generate more electricity within the same footprint, making solar installations more cost-effective and increasing their return on investment. Additionally, the development of high-efficiency modules is particularly important for India, where land availability can be a challenge for large-scale solar projects. By adopting the latest technologies, India’s solar sector can optimize energy generation, especially in regions with high solar insolation.
Expansion of Utility-Scale Solar Projects:
Utility-scale solar projects continue to drive growth in the India solar PV module market, supported by government tenders and auction programs that attract private investment. Large solar parks are being established in states with high solar insolation, such as Rajasthan, Gujarat, and Madhya Pradesh. For instance, in fiscal 2025, India is projected to install 21.2 GW of new solar capacity, including 16.5 GW of utility-scale PV3. These projects not only contribute to India’s renewable energy targets but also provide electricity to areas with limited access to traditional power sources. The scale of these installations allows for economies of scale, further reducing the cost of solar energy. Additionally, utility-scale projects help meet the increasing electricity demand driven by population growth and urbanization. As the government continues to promote large-scale solar installations, the demand for solar PV modules is expected to remain strong.
Rising Adoption of Rooftop Solar and Distributed Energy Systems:
Alongside utility-scale projects, rooftop solar installations are gaining popularity across India, especially in urban areas where space constraints make ground installations challenging. Residential, commercial, and industrial buildings are adopting rooftop solar systems to reduce electricity costs and support sustainability initiatives. The government’s net metering policies, which allow consumers to offset their electricity bills by feeding excess power back to the grid, have further incentivized rooftop solar adoption. Additionally, as the costs of solar PV modules and battery storage systems continue to decline, more households and businesses are exploring the potential for distributed solar systems that offer energy independence and resilience. This trend is contributing to the decentralization of India’s energy grid and is expected to drive sustained demand for solar PV modules in the coming years.
Market Restraints and Challenges:
Dependence on Imported Components and Supply Chain Constraints:
One of the primary challenges facing the India solar PV module market is its reliance on imported components, particularly solar cells and modules. While India has made significant strides in promoting domestic manufacturing, the country still depends heavily on imports, especially from China, for key materials. This reliance exposes the market to supply chain disruptions, trade tariffs, and price fluctuations, which can increase the overall cost of solar PV projects. Additionally, delays in component deliveries can hinder project timelines, affecting the ability to meet installation targets and contributing to uncertainty for developers and investors.
Limited Availability of Land and Infrastructure:
India’s solar PV module market also faces challenges related to land availability and infrastructure constraints. Utility-scale solar projects require large tracts of land, often in remote areas, which can be challenging to acquire. In densely populated regions, suitable land for solar installations may be scarce, driving up costs and complicating project planning. Furthermore, infrastructure limitations, such as inadequate transmission and distribution networks, can restrict the ability to transport electricity generated from solar farms to urban centers where demand is high. These issues highlight the need for improved infrastructure and better land-use planning to support the growth of the solar PV market.
High Initial Capital Costs and Financing Barriers:
Although the cost of solar PV modules has decreased significantly in recent years, the initial capital expenditure for solar projects remains a barrier, particularly for smaller businesses and residential consumers. Many potential customers lack access to affordable financing options, making it challenging to cover the upfront costs of solar installation. Interest rates and financing terms can vary, further complicating investment decisions. This financing gap is particularly evident in rural and underserved areas, where access to credit may be limited. Addressing these financing barriers will be critical for ensuring widespread adoption of solar PV systems across all segments of the Indian market.
Intermittency and Grid Integration Challenges:
The intermittent nature of solar energy poses additional challenges for the India solar PV module market, particularly in terms of grid integration. Solar power generation depends on sunlight availability, which can vary based on time of day, weather conditions, and seasonal changes. This intermittency can create instability in the power grid, especially as the share of solar energy in India’s energy mix continues to grow. Effective grid management, energy storage solutions, and improved forecasting technologies are necessary to mitigate these challenges. Without adequate storage infrastructure and grid integration, balancing supply and demand can be difficult, potentially limiting the scalability of solar PV in India’s energy landscape.
Market Segmentation Analysis:
The India solar PV module market can be segmented by technology, grid type, and application, each addressing distinct needs and offering unique benefits.
By Technology, the market is divided into thin film, polycrystalline, and monocrystalline modules. Polycrystalline modules, known for their cost-effectiveness, dominate the market due to their affordability and suitability for large-scale installations. Monocrystalline modules, while more expensive, offer higher efficiency and are increasingly popular in regions with space constraints and high solar insolation. Thin-film modules, though less common, are utilized for specific applications, particularly where low-weight requirements or flexibility are necessary, such as in certain industrial and commercial projects. Each technology provides varying efficiency levels and installation options, allowing consumers to choose based on budget and specific energy needs.
By Grid Type, the market includes on-grid and off-grid solar PV systems. On-grid systems, which are connected to the public electricity grid, are widely adopted in urban and semi-urban areas, where they enable consumers to reduce electricity costs and potentially earn income through net metering. Off-grid systems, which operate independently of the public grid, are popular in remote and rural areas where grid access is limited. Off-grid installations are critical for expanding energy access in underserved regions, providing reliable electricity to communities with limited infrastructure.
By Application, the market encompasses residential, industrial, and commercial sectors. Residential applications are growing as more households seek sustainable energy solutions and cost savings on electricity bills. The industrial segment, driven by companies aiming to meet sustainability goals and reduce operational costs, represents a substantial share of the market. Commercial applications, including office buildings, retail spaces, and educational institutions, also see significant adoption as businesses aim to reduce carbon footprints and capitalize on renewable energy incentives. Together, these segments illustrate the diverse applications of solar PV modules across India’s growing renewable energy landscape.
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Segmentation:
By Technology
- Thin Film
- Polycrystalline
- Monocrystalline
By Grid
By Application
- Residential
- Industrial
- Commercial
Regional Analysis:
North India: A Rapidly Expanding Solar Hub
North India holds approximately 30% of the India solar PV module market, with states like Rajasthan and Uttar Pradesh leading in solar power generation. Rajasthan, benefiting from high solar insolation and vast desert land, has emerged as one of the country’s primary solar hubs, hosting large-scale solar parks that contribute significantly to India’s renewable energy goals. Uttar Pradesh has also embraced solar energy, with initiatives to promote solar PV installations in both urban and rural areas. Additionally, favorable government policies, such as incentives for rooftop solar installations and state-level solar mandates, are encouraging adoption across this region. With continued focus on solar infrastructure development, North India is expected to maintain its prominent position in the market.
Western India: Leading in Industrial and Commercial Adoption
Western India accounts for roughly 35% of the solar PV module market, driven by states such as Gujarat and Maharashtra. Gujarat is a pioneer in solar energy, with progressive policies and large-scale solar projects that have made it a model for other states. The state’s Solar Power Policy supports grid-connected solar installations, and its strategic coastal location allows for optimal solar energy production. Maharashtra, with its substantial commercial and industrial sectors, is witnessing rapid growth in rooftop solar installations, as businesses seek to reduce electricity costs and meet renewable energy mandates. Western India’s emphasis on solar energy aligns with corporate sustainability goals, and as companies increasingly invest in solar PV systems, the region is set to see sustained demand.
Southern India: Embracing Decentralized and Rooftop Solar
Southern India holds about 20% of the market, with states like Tamil Nadu, Karnataka, and Andhra Pradesh actively promoting solar energy. Tamil Nadu, known for its leadership in wind power, has also expanded into solar, focusing on utility-scale solar parks and encouraging rooftop solar adoption in urban areas. Karnataka has implemented favorable policies for both residential and commercial solar projects, resulting in widespread adoption across various sectors. Andhra Pradesh, meanwhile, is investing in solar power to complement its agricultural sector and support rural electrification. Southern India’s growth in rooftop and decentralized solar installations is significant, as it allows the region to meet growing energy demands while enhancing energy security and sustainability.
Eastern and Northeastern India: Emerging Markets with Strong Potential
Eastern and Northeastern India collectively represent around 15% of the solar PV module market, with states like West Bengal, Odisha, and Assam beginning to explore solar energy as a sustainable power source. West Bengal is focusing on rooftop solar installations in urban centers, while Odisha’s solar projects target rural electrification and off-grid applications. Northeastern states, although limited by hilly terrain and lower solar insolation, are increasingly investing in off-grid solar systems to provide electricity to remote communities. Government programs and partnerships with local and international stakeholders are fostering the growth of solar energy in these regions. As energy needs grow and infrastructure develops, Eastern and Northeastern India hold strong potential for further market expansion, driven by both government support and local initiatives for renewable energy.
Key Player Analysis:
- Adani Group
- Bluebird Solar
- Goldi Solar, Inc.
- JA SOLAR Technology Co., Ltd.
- LOOM SOLAR PVT. LTD.
- Luminous India
- Microtek Solar Solutions
- Panasonic Solar
- RenewSys India Pvt. Ltd.
- Saatvik Green Energy Pvt Ltd.
- Servotech Power Systems
- SWELECT Energy systems Ltd
- Tata Power Solar Systems Ltd.
- VIKRAM SOLAR LTD.
- Waaree Energies Ltd.
Competitive Analysis:
The India solar PV module market is highly competitive, with key players such as Tata Power Solar, Adani Solar, Vikram Solar, and Waaree Energies leading due to their extensive production capacities, robust supply chains, and advanced technology offerings. These companies benefit from strong domestic brand recognition and government support under initiatives like the Production Linked Incentive (PLI) scheme, which encourages local manufacturing. International players, including Trina Solar and Canadian Solar, also contribute to market competition by offering high-efficiency modules and leveraging their global expertise to enter the Indian market. However, the Indian government’s focus on promoting domestic manufacturing has led many international players to establish local partnerships or set up production facilities in India. Smaller and emerging companies are increasingly targeting niche markets, such as rooftop solar and rural electrification, to differentiate themselves. As demand for solar PV modules continues to rise, competition is expected to drive further innovation and cost reductions across the industry.
Recent Developments:
- In March 2024, BluPine Energy, a renewable energy company supported by Actis, acquired 369 MW of solar assets from Acme Group, bringing its total renewable capacity in India to 2.4 GW. This acquisition underscores BluPine Energy’s commitment to advancing sustainable energy solutions in India.
- In February 2024, Avaada Energy secured 1400 MWp of solar projects through tenders issued by central and state government agencies, marking a substantial step forward for India’s renewable energy sector.
- Also in February 2024, Epsilon Advanced Materials acquired a lithium iron phosphate (LFP) cathode technology center in Germany, positioning India as a key player in LFP cathode production outside China. This acquisition enhances Epsilon’s market position by allowing the integration of cathode and anode materials for lithium-ion batteries, strengthening its comprehensive solutions for the battery industry.
Market Concentration & Characteristics:
The India solar PV module market is moderately concentrated, with a mix of large domestic players like Tata Power Solar, Adani Solar, and Vikram Solar, as well as a presence from international companies such as Trina Solar and Canadian Solar. Domestic companies hold a significant share of the market, supported by government initiatives like the Production Linked Incentive (PLI) scheme, which encourages local manufacturing and reduces dependence on imports. These companies leverage advanced technologies, strong supply chains, and substantial production capacities to maintain competitive positions. The market is characterized by a focus on cost-effectiveness, high efficiency, and scalability to meet India’s ambitious renewable energy targets. Demand spans utility-scale projects, rooftop solar, and rural electrification, driving innovation in both polycrystalline and monocrystalline module technologies. With ongoing support from government policies and increasing investment in domestic production, the India solar PV module market is expected to grow and become increasingly competitive.
Report Coverage:
The research report offers an in-depth analysis based on By Technology, By Grid and By Application. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook:
- The India solar PV module market is expected to grow rapidly as the country targets 500 GW of renewable energy capacity by 2030.
- Government incentives, such as the Production Linked Incentive (PLI) scheme, will continue to drive domestic manufacturing.
- Declining module costs, driven by technological advancements, will make solar installations more affordable for a wider range of consumers.
- Corporate sustainability goals and renewable purchase obligations will boost demand in the commercial and industrial sectors.
- Rural electrification programs will expand off-grid solar adoption, increasing energy access in remote areas.
- Rooftop solar installations will rise in urban centers, encouraged by net metering policies and cost savings on electricity.
- High-efficiency modules, such as monocrystalline and bifacial technologies, will gain popularity for their improved energy output.
- Strategic partnerships between domestic and international companies will support technology transfer and production capacity growth.
- Improved grid infrastructure and energy storage solutions will enhance solar integration and reliability.
- The Asia-Pacific region, led by India, will become a major contributor to global solar energy capacity.
