India - Solar Power Market by Application and End-user - Forecast and Analysis 2023-2027

India Solar Power Market Forecast 2023-2027

The India solar power market size is estimated to increase by USD 273.82 billion and grow at a CAGR of 34.24% between 2022 and 2027. The market is growing due to rising investments in renewable energy and supportive government regulations, alongside the increased adoption of microgrids. However, the presence of alternative energy sources poses a challenge. Additionally, the intermittency of the generation and the low conversion efficiency of solar PVs are hindering market growth. Robust market growth is evident, fueled by rising investments in renewable energy and favorable government regulations. Over the past decade, there has been a notable transformation in the global energy landscape, with advancements in energy efficiency playing a pivotal role. Despite the relatively higher costs associated with electricity production, there has been a substantial increase in installed renewable power generation capacity. Enhanced support from governments and improved economic viability have rendered the sector increasingly appealing.

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Market Segmentation

• The market segmentation by Application is categorized as (grid-connected and off-grid) and
• The market segmentation by End-user is categorized as (utility and rooftop)
• Grid-connected segment  is fastest-growing segment during the forecast year
• The grid-connected segment  was the largest segment and valued at  USD 22.98 billion  in 2017
• APAC is is most dominating region during the forecast period
•  It also includes an in-depth analysis of drivers (factors influencing market growth), trends (emerging patterns or shifts in consumer behavior), and challenges (barriers or obstacles faced by the industry) 

The Grid Connected Segment

The main feature of the grid-connected segment is that it supplies solar energy directly to the building loads without the need for any energy storage system. Additionally, the segment is designed in such a way that the surplus energy is fed back to the grid whereas the energy will be imported from the grid if there is any shortfall.

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However, the expansion of this segment is significantly hindered by the unavailability of the land. The main challenge in India is the unavailability of land that can be dedicated exclusively for the installation of solar cells. Furthermore, several factors such as the increasing depletion of fossil fuels including coal, decreasing prices of solar energy, and favorable regulations and policies by the government such as the National Solar Mission are expected to fuel the growth of this segment. In addition, there are several schemes implemented by the Government of India in order to encourage the adoption of solar energy. For instance, a scheme for setting up 300 MW grid-connected solar PV projects by paramilitary forces and defense establishments with VGF is a major scheme announced by the Government of India. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

Market Dynamics and Customer Landscape

The market is experiencing remarkable growth driven by advancements in solar photovoltaic (PV) and concentrated solar power (CSP) technologies. With an increasing installed capacity measured in gigawatts (GW), solar power is emerging as a greener way to generate electricity from renewable, low-carbon sources, contributing to the goal of achieving net-zero carbon emissions. Solar energy, alongside wind power, is revolutionizing electricity generation, gradually replacing fossil fuel-based power plants. Governments incentivize solar power adoption through tax breaks, encouraging the deployment of solar systems and panels. Additionally, technological innovations like artificial intelligence optimize solar permits and enhance the efficiency of solar PV systems, further promoting the widespread adoption of solar energy. Thermal Energy Storage (TES) complements solar power, enabling consistent energy availability even during non-sunlight hours.

Significant Market Trend 

A key factor shaping the market growth is the rising adoption of floating solar power plants. One of the emerging technologies that is at a primitive stage across the world is the floating plant. The main advantage of a floating plant is that it can be installed in human-made or natural water bodies such as dam reservoirs, lakes, municipality water storage ponds, and water treatment plants. Additionally, the performance of floating systems is better than the arrays that are built on the land. 

Moreover, these floating power plants are cooler than traditional systems due to evaporating water which allows them to operate more efficiently. Some of the other advantages of floating power plants include longer module life and higher efficiency of solar panels due to the cooling effect. Hence, such factors are positively impacting the market which in turn will drive growth during the forecast period. 

Key Market Driver

The market is witnessing robust growth driven by increasing investments in renewable energy and favorable government regulations. In the past decade, there has been a significant shift in the global energy mix, with improvements in energy efficiency playing a crucial role. Despite the comparatively higher cost of electricity production, installed renewable power generation capacity has surged. Governments' support and improved economics have made the sector increasingly attractive. India, for instance, is poised to meet its energy demand independently by 2040, with renewable energy playing a pivotal role. With a focus on greener, low-carbon sources and the goal of achieving net zero carbon emissions, the technology emerges as a key player alongside wind power. As the market continues to evolve, advancements in technology, such as Artificial Intelligence, and streamlined processes like solar permits are driving efficiency and adoption, paving the way for a sustainable energy future.

Major Market Challenge

The low conversion efficiency of solar PVs is one of the key challenges hindering market growth. One of the essential requirements of an off-grid system is that it must be self-sufficient in terms of capacity to meet its overall needs. However, a majority of grid sources in several off-grid projects are highly unreliable. Thus, it is necessary to have a sizable PV system and energy storage to produce and store enough power to meet the total electricity needs.

Moreover, it is considered as a clean and abundant source of energy but it is low on efficiency. Therefore as it is required to charge the battery in a hybrid system, the low efficiency will need more solar PV panels, which will increase the cost of the entire system.  Hence, such factors are negatively impacting the market growth. Therefore, it is expected to hinder growth during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

India Major Solar Power Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd: The company offers solar power such as solar products, solar systems, solar solutions, and services to optimize performance.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ACME Solar
• Adani Group
• Azure Power
• Canadian Solar Inc.
• GCL System Integration Technology Co. Ltd.
• Huawei Technologies Co. Ltd.
• JA Solar Technology Co. Ltd.
• Lanco Infratech Ltd.
• Larsen and Toubro Ltd.
• Mahindra and Mahindra Ltd.
• MVV Energie AG
• Reliance Industries Ltd.
• Risen Energy Co. Ltd.
• SMA Solar Technology AG
• Sterling and Wilson Renewable Energy Ltd.
• Sungrow Power Supply Co. Ltd.
• Sunsure Energy
• Suzlon Energy Ltd.
• ReNewPower

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • Grid-connected
  • Off-grid
• End-user Outlook 
  • Utility
  • Rooftop

Market Analyst Overview

The market is witnessing significant growth, driven by the increasing demand for renewable, low-carbon energy sources and government initiatives like the VGF (Viability Gap Funding) Scheme. With advancements in solar PV (Photovoltaic) technology and favorable solar irradiance conditions, solar power is becoming a prominent player in the energy sector. As countries aim to reduce dependence on fossil fuel-based power plants, solar power installations are rapidly expanding, contributing GW (gigawatts) of clean energy to the grid. However, challenges such as intermittency and grid integration persist. Defense schemes and investments in batteries, electrolyzers, and fuel cells are addressing these issues, enhancing the reliability and efficiency of solar power generation, while also bolstering national security through energy independence. Additionally, wind power complements solar energy, further diversifying the renewable energy portfolio.

Moreover, the market is experiencing remarkable growth, driven by various factors including supportive government policies, tax breaks, and foreign investment. With a focus on reducing carbon emissions, solar power technology offers a greener way to meet energy needs. Renewable energy power plants, particularly those utilizing solar photovoltaic (PV) and concentrated solar power (CSP) technologies, contribute significantly to the installed capacity worldwide. Research and development projects continue to enhance the efficiency of solar modules and thermal energy storage systems. Additionally, initiatives like the Solar Park Scheme and wind-solar hybrid policy promote the development of green energy power plants. Power purchase agreements facilitate the expansion of renewable, low-carbon sources, aiming towards achieving net zero carbon emissions and creating a sustainable green hydrogen ecosystem.

Additionally, the market is experiencing significant growth, driven by advancements in artificial intelligence and the urgent need to reduce CO? emissions. With Gigawatts (GW) of solar capacity being added globally, manufacturing facilities are ramping up production to meet demand. Power Purchase Agreements (PPAs) are facilitating the expansion of solar installations, while streamlined processes for obtaining solar permits are expediting project development. The solar PV segment continues to dominate the market, with innovations such as Thermal Energy Storage (TES) enhancing grid stability. However, challenges persist, including transmission and distribution losses. Nevertheless, the solar industry remains at the forefront of renewable energy adoption, playing a crucial role in the global transition to cleaner and more sustainable power sources.

Market Scope
Report Coverage	Details
Page number	133
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 34.24%
Market growth 2023-2027	USD 273.82 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	36.31
Regional analysis	India
Performing market contribution	APAC at 100%
Key countries	India and APAC
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., ACME Solar, Adani Group, Azure Power, Canadian Solar Inc., GCL System Integration Technology Co. Ltd., Huawei Technologies Co. Ltd., JA Solar Technology Co. Ltd., Lanco Infratech Ltd., Larsen and Toubro Ltd., Mahindra and Mahindra Ltd., MVV Energie AG, Reliance Industries Ltd., Risen Energy Co. Ltd., SMA Solar Technology AG, Sterling and Wilson Renewable Energy Ltd., Sungrow Power Supply Co. Ltd., Sunsure Energy, Suzlon Energy Ltd., and ReNewPower
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Country Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across India
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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