India Solar Energy Market is Expected to Register a 10.51% CAGR Through 2031
Government Policies & Initiatives and Declining Costs
of Solar Technology are likely to propel the market during the forecast period.
According to
TechSci Research report, “India Solar Energy Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India Solar Energy Market was valued at USD 8
Billion in 2025 and is expected to reach USD 14 Billion by 2031 with a CAGR of 10.51%
during the forecast period.
Environmental degradation and the threat
of climate change are strong motivating factors behind India’s solar energy
push. India is among the top carbon emitters globally, largely due to its dependence
on coal for electricity. However, the country is also highly vulnerable to
climate impacts such as extreme weather, floods, and droughts, which affect
agriculture, water supply, and public health.
In response, India has made significant
international commitments, including its Nationally Determined Contributions
(NDCs) under the Paris Agreement, aiming to reduce carbon intensity and
increase the share of non-fossil fuels in its energy mix. Solar energy plays a
central role in achieving these goals.
Environmental awareness among the
public, investors, and businesses has grown, leading to increased demand for
green energy solutions. Corporations are setting net-zero targets and
integrating sustainability into their operations, which fuels demand for clean
power like solar.
Moreover, solar energy helps reduce
local environmental issues such as air pollution from coal-fired power plants.
In cities like Delhi, where air quality is a major health hazard, reducing
reliance on fossil fuels is both an environmental and public health imperative.
India’s commitment to global initiatives
like the International Solar Alliance (ISA) further reflects its leadership in
promoting solar energy as a tool for sustainable development. The ISA,
headquartered in India, promotes solar energy adoption across sun-rich
countries, particularly in the Global South.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India Solar Energy Market.”
Based
on End Use, Electricity generation dominated the Indian solar energy market
primarily because solar power’s most mature and economically viable application
is in producing electricity. India’s rapidly growing demand for electricity,
driven by industrialization, urbanization, and rural electrification, creates a
strong need for scalable, reliable, and clean power sources. Solar energy,
especially through photovoltaic (PV) technology, offers a cost-effective and
environmentally friendly solution that aligns well with India’s energy goals.
Several
factors contribute to electricity generation’s dominance in the solar sector.
First, government policies and ambitious renewable energy targets focus heavily
on expanding solar power capacity to reduce dependence on fossil fuels, curb
carbon emissions, and enhance energy security. The National Solar Mission and
subsequent policies have prioritized utility-scale solar farms and rooftop
installations, which directly contribute to electricity generation. This
large-scale deployment requires significant infrastructure and investment,
emphasizing electricity generation as the primary market driver.
Solar
electricity generation can be integrated into the national grid, providing
clean energy to millions of consumers across urban and rural India. It supports
grid stability by diversifying the energy mix and reducing the carbon footprint
of electricity production. Additionally, distributed solar generation through
rooftop systems empowers consumers to generate their own electricity, reducing
grid demand and lowering electricity costs.
Third,
compared to other solar applications like heating, cooling, or industrial
process heat, solar electricity generation benefits from rapidly declining
costs of solar PV modules and improved efficiency. This makes solar-generated
electricity more competitive than conventional energy sources, accelerating its
adoption in residential, commercial, and industrial sectors.
Advances
in energy storage and smart grid technologies enhance the reliability and
usability of solar electricity, overcoming challenges of intermittency and
enabling 24/7 power supply. This further reinforces electricity generation as
the dominant segment in India’s solar energy market.
Based
on Region, North India has emerged as the fastest-growing region in the Indian
solar energy market due to a combination of favorable geographic, economic, and
policy factors.
The
region benefits from abundant solar irradiance, especially in states like
Rajasthan, Haryana, Punjab, and Uttar Pradesh. Rajasthan, in particular, boasts
some of the highest solar radiation levels in the country, making it ideal for
both large-scale solar farms and decentralized solar projects. This natural
advantage allows for high efficiency and energy yield, attracting significant
investments.
Strong
government support at both the central and state levels has accelerated solar
deployment in North India. States like Rajasthan and Haryana have implemented
progressive policies, including competitive bidding for solar tenders,
streamlined land acquisition processes, and incentives for rooftop solar
installations. These proactive measures have created a conducive environment
for developers and investors. Additionally, North India has a rapidly growing
industrial base and urban population, driving higher electricity demand.
Commercial and industrial consumers in this region are increasingly adopting
solar energy to reduce costs and meet sustainability goals. The region’s
expanding infrastructure and connectivity also facilitate easier transmission
and integration of solar power into the grid.
The
presence of well-developed transmission networks and ongoing investments in
green energy corridors enhance the region’s ability to evacuate solar power
efficiently. This reduces bottlenecks and grid curtailment issues, which often
hamper renewable energy projects in other parts of the country. Furthermore,
North India’s strategic location offers proximity to major load centers like
Delhi and the National Capital Region (NCR), where electricity demand is
consistently high. Supplying clean energy to these urban hubs is both
economically viable and environmentally necessary, driving further solar
growth.
Major companies
operating in the India Solar Energy Market are:
- Adani Green
Energy Limited
- Tata Power
Solar Systems Limited
- ReNew Power
Ventures Pvt. Ltd.
- Azure Power
Global Limited
- ACME Solar
Holdings Limited
- Hero Future
Energies Pvt. Ltd.
- Greenko Group
- Waaree Energies
Ltd.
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“India’s solar energy market presents a
significant opportunity, driven by the country’s ambitious renewable energy
targets, rising electricity demand, and supportive government policies. With a
target of achieving 500 GW of non-fossil fuel capacity by 2030—of which solar
is expected to contribute a major share—the sector offers vast potential for
investment and innovation. Rapidly declining technology costs, increased
adoption across residential, commercial, and industrial segments, and the push
for domestic manufacturing further enhance market attractiveness. Additionally,
growing corporate sustainability commitments and advancements in storage and
smart grid solutions position solar as a cornerstone of India’s energy
transition strategy.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“India Solar Energy
Market, By Technology (Solar Photovoltaic, Concentrated
Solar Power), By Solar Module (Monocrystalline, Polycrystalline, Cadmium
Telluride, Amorphous Silicon Cells, Others), By Application (Residential,
Commercial, Industrial), By End Use (Electricity Generation, Lighting, Heating,
Charging) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth
potential of India Solar Energy 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 Solar Energy Market.
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