India Solar Water Heater Market to Grow with a CAGR of 7.55% through 2031F

The India Solar Water Heater Market is driven by factors such as government subsidies and mandates, rising electricity and fuel prices, and rapid urbanization with green building codes.

According to TechSci Research report, “India Solar Water Heater Market – By Region, Forecast & Opportunities, 2031F”, the India Solar Water Heater Market was valued at USD 371.54 Million in 2025 and is expected to reach USD 575.12 Million by 2031 with a CAGR of 7.55% during the forecast period. The India solar water heater market is witnessing significant growth as the country embraces sustainable energy solutions amid rising energy costs and increasing environmental concerns. With its tropical climate and abundant solar radiation, India offers ideal conditions for the widespread use of solar water heaters, which use solar energy to heat water for domestic, commercial, and industrial purposes. This renewable technology is emerging as an effective alternative to conventional electric or gas geysers, reducing dependence on non-renewable sources. As the government prioritizes renewable energy under national and international commitments, solar thermal systems are gaining prominence across various regions of the country. These developments are not only reshaping consumer preferences but also transforming infrastructure planning and energy consumption patterns nationwide.

Government support plays a pivotal role in driving the market’s momentum. The Ministry of New and Renewable Energy (MNRE) provides capital subsidies, tax incentives, and interest-free loans to promote the adoption of solar water heaters. Additionally, various state governments have implemented their own incentives and mandates, encouraging installations in residential buildings, educational institutions, hospitals, and commercial establishments. Many urban local bodies have incorporated solar water heaters into building bye-laws, especially in regions like Bengaluru, Pune, and Chennai. These policy measures are critical in lowering the upfront cost barrier and enhancing awareness about long-term economic and environmental benefits.

Technological advancements and innovations in product design are also contributing to market expansion. The shift from flat plate collector systems to evacuated tube collectors (ETCs) has improved efficiency, especially in colder or cloudy regions. Manufacturers are increasingly focusing on developing systems that are compact, durable, and suited to a variety of climatic conditions. Moreover, smart and hybrid solar water heaters equipped with IoT features are entering the market, enabling users to monitor performance and energy savings through mobile apps. These developments cater to the growing segment of environmentally conscious and tech-savvy consumers who demand convenience, performance, and reliability in their home energy systems.

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The India Solar Water Heater Market is segmented into product type, collector type, distribution channel and region.

Based on collector type, Glazed solar water heating systems are the fastest growing segment in the India market due to their higher efficiency, durability, and suitability for diverse applications. These systems, which use a glass covering over the absorber plate, offer better heat retention and performance in varied weather conditions, including colder and cloudier regions. As demand rises from residential complexes, hospitals, hotels, and industrial units, glazed systems are increasingly preferred for their reliability and consistent output. Government regulations and building mandates also favor glazed systems due to their compliance with energy efficiency standards. Their ability to deliver high-temperature water and integrate with hybrid systems further boosts adoption. With expanding urban infrastructure and growing awareness, glazed systems continue to lead market growth across regions.

Based on region, North India is currently the fastest growing region in India’s solar water heater market, fueled by its colder climate, rapid urbanization, and rising income levels. States like Rajasthan, Uttar Pradesh, Delhi, and Chandigarh are seeing increasing adoption of solar water heaters to meet hot water needs during harsh winters and enhance energy efficiency. This growth is further supported by attractive subsidies, tax incentives, and net-metering policies offered by regional governments, making solar installations more economically viable. Expanding residential and commercial infrastructure—combined with growing environmental awareness and rising operational costs—has intensified demand for renewable energy solutions. As a result, North India is outpacing other regions in solar water heater market expansion and is projected to maintain this momentum in the forecast period.

Major companies operating in India Solar Water Heater Market are:

• V-Guard Industries
• Racold Thermo Private Limited
• EMMVEE Solar System Private Limited
• Sudarshan Saur Shakti Pvt. Ltd
• Jain Irrigations Systems Ltd
• Bosch Limited
• Supreme Solar Systems Private Limited
• Nuetech Solar Systems Private Limited
• Akson’s Solar Equipments Pvt Ltd.
• Anu Solar Power Private Limited

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“The India solar water heater market is driven by rising electricity and fuel costs, government incentives, and growing awareness of sustainable energy solutions. Increasing urbanization and regulatory mandates are pushing adoption across residential and commercial sectors. Technological advancements, such as evacuated tube collectors and smart hybrid systems, are enhancing efficiency and convenience. A noticeable trend is the growing adoption in industrial and institutional settings due to cost savings and ESG goals”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Solar Water Heater Market By Product Type (Active Solar Water Heating Systems, Passive Solar Water Heating Systems), By Collector Type (Glazed, Unglazed), By End-Use (Residential, Commercial), By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Solar Water Heater Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Solar Water Heater Market.

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