Imagine a future where India, powered by the abundant radiance of the sun, breaks free from the shackles of fossil fuels.
A future where solar panels gleaming across the land silently, efficiently, and sustainably fuel our growth. Intriguing, isn’t it?
India’s solar energy market is a booming sector, ripe with potential and promise. But how do we quantify this potential, and why is it crucial for us?
As we explore this, we’ll dive into an in-depth analysis of solar energy market size in India, decode the thriving solar panel industry, and spotlight the solar energy stocks in India, shaping the country’s energy landscape.
Let’s navigate together through the surge of India’s solar industry, a revolution that’s not just about energy generation but also a testament to our resilience and commitment to sustainability.
Buckle up and prepare to witness the exciting transformation of India’s energy sector.
Solar Energy Market Size in India
The solar energy market size in India has grown rapidly, becoming a major contribution to its energy landscape. The immense potential of solar power in India is evidenced by its substantial market size.
The Current Market Size Of Solar Energy in India
As of 2023, the current solar energy market size in India is substantial and continues to expand at a rapid pace. The source reports that India’s total installed solar capacity has exceeded USD 240.42 billion from 2021 to 2026 at a CAGR of 35.24%.
This capacity includes utility-scale solar projects and rooftop solar systems and solar parks. This analysis of solar energy shows the potential of solar energy in India.
Over the years, favourable government regulations, increased investments, and technology developments have grown the solar energy market size in India. The government’s ambitious target of achieving further underscores the importance and potential of solar energy in India’s energy mix.
Furthermore, The solar energy market size in India is experiencing significant growth, attracting both local and foreign investments. This investment influx has contributed to the market’s growth and facilitated the deployment of innovative solar technologies.
India features one of the world’s largest solar energy markets. However, with huge untapped solar potential and continuing measures to increase renewable energy consumption, the industry is set for a significant boom.
This narrative is set against the backdrop of What Is the Future of Renewable Energy? Exploring Trends, Growth, and India’s Impressive Strides, which offers a comprehensive outlook on the evolving renewable energy landscape.
Comparison of Solar Energy Market Size in india with Other Renewable Energy Sources
Despite its rapid expansion, India’s solar energy sector must be compared to other renewable energy sources. Solar, wind, hydropower, and biomass markets will be compared here.
The solar industry India has seen a remarkable expansion, with significant investments and supportive government policies driving its growth. The solar energy market size in India continues to increase, solidifying its position as a leading renewable energy source in India.
Wind energy has long been a prominent renewable energy source in India. The country has favourable wind conditions, especially along its coastline and in certain states
With substantial investments and policy support, the wind energy market has grown considerably.
As of 2023, the installed wind energy capacity in India stands at 42633 MW, showcasing its significant contribution to the renewable energy landscape.
India’s plentiful water resources have been used to generate hydropower for electricity. While hydropower installations have faced challenges in recent years, the sector still retains a considerable market size.
As of 2023, the installed hydropower capacity in India stands at 178.79 GW, making it an important component of the country’s renewable energy mix.
Biomass energy involves utilising organic matter, such as agricultural waste and forest residues, for electricity generation and heating purposes. Biomass provides energy, especially in rural India.
The biomass sector has witnessed moderate growth, with the installed biomass capacity in India reaching 10,205.61 MW as of FY 2022.
Wind, hydropower, and biomass remain dominate India’s renewable energy economy, but solar energy is expanding. Solar energy market size in India surpasses that of other renewable sources, reflecting its increasing prominence in the country’s energy transition.
The government’s focus on solar energy, technological advancements, and favourable geographical conditions have propelled the solar sector’s growth. Solar power is poised to help India accomplish its renewable energy ambitions and create a sustainable and clean future.
Growth of the Solar Energy Market size in India
India’s cumulative solar energy capacity increased by 41.39% from 6.76 GW in FY 2016 to 54.00 GW in FY 2022.
This rise can be exemplified by the fact that people want to use more renewable energy because standard ways of making electricity, like thermal power plants, are running out.
Solar energy market size in India has grown because of government-private sector partnerships. In 2021, India secured the fifth position globally in terms of solar power deployment.
The Ministry of New and Renewable Energy (MNRE) regulates the solar energy market. Major players in the industry include SustVest, Adani Power Limited, Tata Power Company Limited, ReNew Energy Global Plc, and Torrent Power Limited.
The National Action Plan on Climate Change prioritises solar energy generation. Most Indian solar PV panels use crystalline silicon, which enhances power efficiency by 22%.
The National Solar Mission is a crucial initiative aimed at promoting the expansion and generation of solar power.
The solar energy market size in India has witnessed substantial growth in recent years. The industry is divided into grid-connected and off-grid applications. The grid-connected segment holds the largest market share, while off-grid installations are relatively lower in terms of application status.
The MNRE’s Off-grid Solar PV Applications Program seeks to provide solar PV-based solutions in areas lacking reliable grid power.
COVID-19 impact analysis:
The COVID-19 pandemic had an adverse impact on the solar energy sector in India. During the initial wave, the lockdown led to a decrease in electricity demand as commercial spaces remained closed.
The supply side was also affected, with a majority of migrant labour in solar parks returning to their villages. However, as restrictions eased, solar companies resumed procurement and installation activities.
The government implemented policies to stimulate the solar energy market, promoting domestic products and emphasising the importance of renewable resources in mitigating climate change.
Trends in the Solar Energy Market in India
Here are some trends that were observed in the Indian solar energy market at that time:
- Rapid Capacity Addition: The Indian solar energy sector is growing rapidly. The government’s focus on renewable energy and ambitious goal of 175 GW of renewable energy capacity by 2022. This has driven the solar energy market size in India drastically.
- Decreasing Costs: The cost of solar power generation has been declining steadily in India, primarily due to technological advancements, economies of scale, and competitive bidding during project auctions. Solar energy is cheaper due to falling panel and component prices and favourable government policy.
- Increase in Solar Installations: Indian solar installations have increased significantly. Solar parks and farms are being built in many states. Commercial and industrial rooftop solar installations are also growing.
- Government Incentives and Policies: The Indian government offers solar energy incentives. Subsidies, tax breaks, and concessional financing counts. The introduction of initiatives like the Solar Energy Corporation of India (SECI) and the National Solar Mission has also facilitated market growth. The introduction of initiatives like the Solar Energy Corporation of India (SECI) and the National Solar Mission has also facilitated market growth.
- Shift towards Renewable Energy: Solar energy market size in India has grown in popularity due to climate change and conventional energy’s environmental effects. Businesses, industries, and families use solar energy to decrease carbon emissions and become energy independent.
- Growth in Solar Energy Stocks: Solar energy firms are attracting investors due to India’s rising solar energy demand. Several Indian companies involved in solar energy production, solar panel manufacturing, and related infrastructure have witnessed substantial growth in their stock prices. Investors seeking to profit from the industry’s expansion are turning to solar energy equities in India.
These trends are evident in the Top Solar Companies In India 2023, reflecting the growing investor interest in the Indian solar sector.
Future Prediction for the Solar Energy Market Size in India
The future prediction for the solar energy market size in India is highly optimistic. Continued government support and favourable policies will drive significant growth.
The solar capacity is expected to increase substantially, reaching the revised target of 450 GW by 2030. Falling costs of solar technology will make it more affordable and attractive for both utility-scale and rooftop installations.
Renewable energy will be promoted to fulfil rising energy demand and reduce carbon emissions. Innovation and storage technology advancements will enhance solar power’s reliability and efficiency, further boosting its adoption in India’s energy mix.
This forward-looking perspective is in sync with the Future of Sustainable Investing in India, which examines how sustainability is reshaping the investment scene.
Can individuals invest in the solar energy market in India?
Absolutely! Solar energy can be invested in through rooftop solar systems, solar bonds, or solar energy corporations.
Are there government incentives available for solar energy investments?
Yes, the Indian government offers subsidies, tax perks, and renewable purchase obligations (RPOs) to stimulate solar energy investments and growth.
What role does technology play in leveraging solar energy market growth in India?
Technology plays a crucial role in the solar energy market, enabling advancements in solar panel efficiency, energy storage solutions, smart grid integration, and remote monitoring, thereby enhancing the overall performance and profitability of solar projects.
The solar energy market size in India has experienced significant growth and shows immense potential for the future. With government initiatives, technological advancements, and increasing investments, the solar energy sector is poised for continued expansion.
The solar energy market in India not only offers environmental benefits but also presents lucrative opportunities for businesses, investors, and consumers.
Leveraging India’s solar energy market size can help us lessen our dependence on fossil fuels and combat climate change. Solar energy is a smart move toward a cleaner, brighter future.
SustVest, a sustainable investment platform, can help individuals and organisations navigate the Indian solar energy market and make greener investment decisions. Join India’s solar energy revolution with SustVest’s sustainable investments.
Founder of Sustvest
Hardik completed his B.Tech from BITS Pilani. Keeping the current global scenario, the growth of renewable energy in mind, and people looking for investment opportunities in mind he founded SustVest ( formerly, Solar Grid X ) in 2018. This venture led him to achieve the ‘Emerging Fintech Talent of the Year in MENA region ‘ in October 2019.