India Microgrid Market is Expected to Register a 8.27% CAGR Through 2031
Energy Access in Remote & Rural Areas and Increasing
Renewable Energy Integration are likely to propel the market during the
forecast period.
According to
TechSci Research report, “India Microgrid Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India Microgrid Market was valued at USD 2.63
Billion in 2025 and is expected to reach USD 4.27 Billion by 2031 with a CAGR
of 8.27% during the forecast period.
Policy and regulatory support from the
Indian government has been a significant catalyst for the growth of the
microgrid market. Recognizing the role of microgrids in enhancing energy
access, improving grid stability, and promoting renewable energy, the
government has introduced various initiatives and frameworks to encourage
deployment across sectors.
The Ministry of Power, along with
agencies like the Ministry of New and Renewable Energy (MNRE), has launched
several schemes such as the National Solar Mission, the Saubhagya Scheme for
universal electrification, and the Smart Cities Mission, all of which include
microgrids as integral components. The draft National Electricity Policy and
National Energy Policy also promote decentralized generation and energy
resilience, aligning well with microgrid development.
Financial incentives, such as viability
gap funding, capital subsidies, and tax benefits for renewable energy
integration, make microgrids more economically attractive. States like Uttar
Pradesh, Bihar, and Jharkhand have been at the forefront of rural microgrid
rollouts, driven by supportive local policies and coordination with private
developers.
Regulatory innovations such as net
metering, open access, and the introduction of Time-of-Day (ToD) tariffs
further encourage the integration of microgrids into the energy ecosystem. The
emergence of energy service companies (ESCOs) and regulatory frameworks for
peer-to-peer energy trading also expand microgrid use cases in urban and
semi-urban areas.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India Microgrid Market.”
Based
on End User, The commercial and industrial (C&I) sector was emerging as a
dominant player in the India microgrid market due to several key factors,
including the growing need for reliable, cost-effective, and sustainable power
solutions.
In
India, many regions experience frequent power outages, voltage fluctuations,
and load shedding, which can severely disrupt commercial and industrial
operations. For businesses that rely on continuous power for manufacturing,
data centers, healthcare facilities, and retail operations, such disruptions
lead to productivity losses, equipment damage, and higher operational costs.
Microgrids offer these businesses a reliable solution by providing autonomous
energy systems that can seamlessly switch between grid-connected and islanded
modes, ensuring uninterrupted power supply.
The
rising cost of electricity and grid tariffs is pushing businesses to seek
alternative, more affordable power sources. Microgrids, particularly those
powered by solar energy, allow companies to reduce their reliance on expensive
grid power and costly backup diesel generators. Solar-powered microgrids, in
combination with energy storage solutions, enable businesses to generate their
own electricity, lower their energy bills, and manage energy consumption more
efficiently. As a result, companies can achieve long-term cost savings while
minimizing their environmental impact.
There
is increasing pressure on businesses to reduce their carbon footprint and adopt
sustainable energy solutions. In line with India’s renewable energy targets and
global sustainability trends, C&I sectors are turning to microgrids as part
of their corporate social responsibility (CSR) initiatives. Microgrids that
integrate renewable energy sources such as solar, wind, and biomass align with
environmental goals and help businesses meet regulatory requirements for green
energy adoption.
The
Indian government offers various incentives, including subsidies, tax benefits,
and support through schemes such as the Perform, Achieve, and Trade (PAT)
scheme, encouraging businesses to adopt cleaner energy solutions. These
policies have further propelled the adoption of microgrids in the C&I
sector, as they make the investment more financially viable.
Based
on Region, North India is emerging as the fastest-growing region in the Indian
microgrid market due to a combination of factors that align with the region's
energy needs, geographic conditions, and government initiatives.
One
of the primary reasons for the rapid growth in North India is the region's
significant energy access challenges, especially in rural and remote areas.
Despite efforts to electrify India, regions like Uttar Pradesh, Bihar,
Uttarakhand, and Rajasthan still face unreliable grid power, frequent outages,
and inadequate infrastructure. Microgrids, particularly solar-powered systems,
provide a reliable and cost-effective solution for these off-grid and
underserved areas, enabling local communities to access clean and consistent
electricity. With a large rural population, North India’s demand for
decentralized energy solutions is high, driving the adoption of microgrids.
North
India is blessed with abundant sunlight, making solar energy an ideal and
sustainable solution for powering microgrids. States like Rajasthan, known for
its vast arid regions, are seeing increasing solar microgrid deployments, which
help reduce dependence on diesel generators and traditional grid power. The
region’s climate conditions are particularly conducive to solar generation,
which lowers the cost of microgrid installations and improves their economic
viability.
Government
policies and initiatives, such as the Deendayal Upadhyaya Gram Jyoti Yojana
(DDUGJY) and the Saubhagya Scheme, have further accelerated microgrid
deployment in North India. These schemes focus on electrification and improving
the reliability of power in rural areas, with microgrids playing a crucial
role. Moreover, the growing emphasis on renewable energy at the national level,
along with state-specific policies supporting microgrid adoption, has led to
greater public-private partnerships and investments in North India.
Major companies
operating in the India Microgrid Market are:
- Tata Power Solar Systems Ltd.
- Sterlite Power Transmission Ltd.
- Suzlon Energy Ltd.
- Mahindra Susten Pvt. Ltd.
- L&T Power Development Ltd.
- ReNew Power Limited
- Adani Green Energy Ltd.
- BHEL (Bharat Heavy Electricals Limited)
Download Free Sample Report
Customers can
also request 10% free customization on this report.
“The Indian microgrid market presents a
significant growth opportunity driven by the country’s push for energy access,
renewable integration, and grid resilience. With over 200 million people still
facing unreliable electricity, microgrids offer a viable solution, particularly
in rural and remote regions. Additionally, rising industrial and commercial
demand for uninterrupted power, coupled with supportive government policies and
declining costs of solar and storage technologies, are creating a favorable environment
for investment. The market is poised for rapid expansion through both
community-based and commercial deployments, offering scalable opportunities for
technology providers, project developers, and financial institutions across the
energy value chain.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“India Microgrid Market, By Connectivity (Grid Connectivity, Off-Grid
Connectivity), By Type (AC Microgrids, DC Microgrids, Hybrid), By End User
(Government, Utilities, Military, Healthcare, Commercial & Industrial,
Others) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth
potential of India Microgrid 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 make sound
investment decisions., The report also identifies and analyzes the emerging
trends along with essential drivers, challenges, and opportunities in the India
Microgrid Market.
Contact
TechSci Research LLC
420 Lexington Avenue,
Suite 300, New York,
United States- 10170
Tel: +13322586602
Email: [email protected]
Website: www.techsciresearch.com