India Concentrated Photovoltaic Market, By Product (Reflectors, Refractors), By Concentration (High Concentration Photovoltaic, Low Concentration Photovoltaic), By End Use (Commercial, Utilities, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India Concentrated Photovoltaic Market was valued at USD 302 Million in 2025 and is expected to reach USD 436 Million by 2031 with a CAGR of 6.19% during the forecast period. 

Concentrated Photovoltaic (CPV) technology refers to a solar power system that uses lenses or mirrors to focus sunlight onto high-efficiency solar cells. Unlike traditional flat-panel photovoltaic systems, CPV concentrates sunlight by several times—often hundreds or even thousands of times—onto a smaller, highly efficient cell area. This concentration allows the use of less photovoltaic material, reducing costs while increasing power output. CPV systems typically incorporate multi-junction solar cells designed to capture a broader spectrum of sunlight, improving overall efficiency. These systems require precise tracking mechanisms to follow the sun’s movement, ensuring maximum light concentration throughout the day. CPV is especially effective in regions with strong direct sunlight and clear skies. By combining optical concentration with advanced solar cell technology, CPV offers a promising solution for large-scale, high-efficiency solar power generation, contributing to the advancement of renewable energy technologies.

Key Market Drivers

Abundant Solar Resource Availability in India

India is blessed with abundant solar radiation, making it one of the most promising markets for concentrated photovoltaic (CPV) technology. The country receives an average of 5 to 7 kWh/m²/day of solar insolation, especially in its western and southern regions such as Rajasthan, Gujarat, and Tamil Nadu. This high intensity of direct sunlight is critical for CPV systems because they rely on concentrating direct normal irradiance (DNI) to generate electricity efficiently. Unlike traditional photovoltaic panels that can also utilize diffuse sunlight, CPV systems need direct sunlight to focus via lenses or mirrors onto small, highly efficient solar cells.

The geographical advantage offers a compelling case for deploying CPV, which can generate more power per unit area than conventional PV systems due to its ability to concentrate sunlight multiple times over. This efficient use of land is particularly important in India, where land acquisition can be challenging and costly. CPV's high energy yield per square meter is therefore a strategic fit for Indian conditions. Moreover, India’s solar potential aligns with the government’s ambition to rapidly scale renewable energy capacity. The combination of natural solar advantages with the rising demand for clean energy makes CPV technology attractive for developers aiming to maximize energy output while optimizing land and capital expenditure. The plentiful solar resource not only ensures consistent power generation but also improves the economic viability and return on investment of CPV projects.

India receives an average solar insolation of about 5 to 7 kWh/m²/day across most regions, which is ideal for solar power generation.

Government Policies and Incentives Supporting Solar Energy

The Indian government plays a pivotal role in accelerating the adoption of concentrated photovoltaic (CPV) technology through its proactive renewable energy policies and financial incentives. Over the last decade, India has set ambitious targets for solar capacity under its National Solar Mission, part of the National Action Plan on Climate Change, aiming for 100 GW of solar power by 2025. This creates a conducive environment for emerging solar technologies, including CPV, to gain traction.

The government offers several fiscal incentives, such as accelerated depreciation benefits, viability gap funding, and subsidies for solar power developers, reducing the initial capital burden. These financial supports improve project economics, encouraging investment in advanced solar technologies that may have higher upfront costs but superior long-term returns due to efficiency gains.

Various states have introduced their own solar policies, providing further incentives like exemptions from electricity duty, concessional land leasing rates, and easier grid connectivity. The Ministry of New and Renewable Energy (MNRE) actively promotes research and development, enabling technology providers to refine CPV systems for Indian climatic conditions and reduce costs.

Public sector utilities and large-scale solar park initiatives also offer platforms for CPV deployment. By integrating CPV into competitive bidding processes for solar tenders, the government fosters a technology-neutral environment that encourages innovation and the use of high-efficiency systems. Furthermore, India’s commitment to international climate goals and its participation in global renewable energy partnerships strengthen the policy framework, enhancing investor confidence. The overall policy ecosystem helps mitigate risks related to project financing, permitting, and long-term operations, which are crucial for novel technologies like CPV to scale. India aims to achieve 100 GW of solar power capacity by 2025 under the National Solar Mission, significantly boosting demand for solar technologies including CPV.

Growing Demand for Efficient and Cost-Effective Solar Solutions

India’s rapid economic growth and rising energy demand have created a pressing need for efficient, scalable, and cost-effective solar power solutions. Concentrated photovoltaic (CPV) technology addresses this demand by delivering higher efficiency compared to conventional solar panels, thereby generating more electricity from the same land area and solar input.

CPV uses multi-junction solar cells capable of converting a broader range of sunlight wavelengths into electricity, achieving efficiencies often exceeding 30%, which is significantly higher than typical silicon-based photovoltaic modules. This efficiency translates into greater power output, making CPV attractive for utilities and private investors seeking to maximize returns in competitive energy markets.

As land availability becomes a constraint in populous regions, CPV’s ability to generate more power per square meter becomes a key advantage. This efficiency reduces the spatial footprint of solar installations, allowing developers to optimize land use and minimize associated costs such as site acquisition, preparation, and grid interconnection. Additionally, the reduction in balance-of-system costs, such as cabling and mounting structures due to smaller module sizes, further improves the economic feasibility of CPV projects. The technology’s modular nature also supports flexible deployment, from small commercial installations to large utility-scale power plants.

India’s increasing focus on lowering the levelized cost of electricity (LCOE) from renewable sources pushes developers to explore advanced technologies like CPV. As competition in solar markets intensifies, technologies offering higher efficiency at competitive costs stand to benefit. Moreover, CPV’s compatibility with tracking systems allows it to maintain high performance throughout the day, enhancing capacity utilization factors compared to fixed-tilt systems. This leads to more reliable and predictable power generation, which is valuable for grid stability and integration.

Therefore, the growing demand for more efficient, cost-effective, and space-saving solar solutions in India acts as a strong driver for the adoption of CPV technology, meeting the country’s energy needs sustainably while optimizing investment returns. The government aims to achieve 500 GW of renewable energy capacity by 2030, with solar expected to contribute a significant portion, highlighting the demand for efficient solar technologies.

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Key Market Challenges

High Initial Capital Costs and Financial Barriers

One of the major challenges confronting the growth of the concentrated photovoltaic (CPV) market in India is the relatively high upfront capital investment required. CPV technology involves sophisticated components such as multi-junction solar cells, precision optics like Fresnel lenses or mirrors, and advanced dual-axis tracking systems. These specialized materials and mechanisms are more expensive to manufacture and install compared to conventional silicon photovoltaic panels.

This higher capital cost can be a significant barrier for many project developers and investors, especially in a price-sensitive market like India where initial project costs often weigh heavily in decision-making. Although CPV offers higher efficiencies and improved power output per unit area, the cost savings realized over the system’s lifespan may not be immediately apparent or sufficient to justify the initial expenditure without strong financial incentives or subsidies. Furthermore, limited familiarity with CPV technology among local financiers and banks can create hurdles in securing affordable financing. Many lenders prefer well-established photovoltaic technologies with proven track records, perceiving newer technologies like CPV as higher risk. This perception can lead to higher interest rates, more stringent lending conditions, or outright reluctance to fund CPV projects, restricting market growth.

The need for precise installation and ongoing maintenance also adds to project complexity, potentially increasing operational costs. Tracking systems require regular calibration and servicing, while the optics must be kept clean and aligned to ensure optimal performance. In remote or harsh environments common in India, these operational challenges can escalate costs and reduce system reliability.

To overcome these financial and technical barriers, increased awareness among investors about the long-term economic benefits of CPV is essential. Supportive policy measures, including subsidies, low-interest loans, and risk guarantees, could play a critical role in lowering investment hurdles. Additionally, developing local manufacturing capabilities and supply chains can help reduce equipment costs and enhance the affordability of CPV systems.

Dependence on High Direct Normal Irradiance and Climatic Limitations

A significant challenge for concentrated photovoltaic (CPV) deployment in India stems from the technology’s dependence on high levels of direct normal irradiance (DNI). CPV systems rely on concentrating sunlight onto small, highly efficient solar cells, and this process requires direct, unobstructed sunlight. Unlike conventional solar panels that can generate power from both direct and diffuse sunlight, CPV performs optimally only under clear sky conditions where sunlight is intense and direct.

India’s climate varies widely across regions, with many areas experiencing seasonal monsoons, frequent cloud cover, dust storms, and high levels of atmospheric pollution. During the monsoon season, which lasts several months in many parts of the country, solar insolation is significantly reduced due to cloud cover and rainfall. This reduction in DNI adversely impacts CPV system efficiency and power output, limiting the technology’s effectiveness during these periods.

Dust accumulation on the optical surfaces of CPV systems is another challenge, especially in arid and semi-arid regions where dust storms are common. Dust can reduce the transparency of lenses or mirrors, diminishing the amount of sunlight concentrated on the solar cells and thus lowering energy generation. Frequent cleaning is required to maintain system performance, which increases maintenance costs and operational complexity. Additionally, CPV’s reliance on precise solar tracking to maintain alignment with the sun further complicates its performance in variable weather conditions. Cloudy or partially overcast skies disrupt direct sunlight, causing fluctuations in power output and reducing the system’s capacity factor.

While India’s western and southern regions receive high DNI, many populous and industrial regions in the north and east experience lower direct solar radiation, limiting the geographical scope where CPV is economically viable.

Key Market Trends

Increasing Adoption of Multi-Junction Solar Cells for Enhanced Efficiency

A significant trend in the India CPV market is the growing adoption of multi-junction solar cells. These advanced cells are engineered by stacking multiple semiconductor layers, each designed to capture different segments of the solar spectrum. This technology enables CPV systems to achieve efficiencies far beyond traditional silicon solar panels, often exceeding 30%.

Indian solar developers and researchers are increasingly focusing on multi-junction cells because they offer a pathway to maximize power generation in limited land spaces. With land scarcity and rising real estate costs in India, especially near urban centers, maximizing energy output per square meter is critical. Multi-junction cells allow CPV plants to generate more electricity using smaller footprints, aligning with land use priorities. Moreover, these cells are particularly suitable for India’s strong direct sunlight conditions, especially in states like Rajasthan, Gujarat, and Maharashtra. Their superior performance in high solar irradiance environments makes them attractive for utility-scale installations where efficiency gains translate directly into financial benefits.

The integration of multi-junction cells also supports India’s goal to produce cleaner energy more effectively, helping to reduce dependency on fossil fuels. Although these cells remain costlier than conventional panels, ongoing technological improvements and economies of scale are gradually lowering costs, making them more accessible to Indian developers.

Another important aspect of this trend is that Indian research institutions and startups are increasingly participating in the development and localization of multi-junction cell technologies. This strengthens the domestic supply chain, reduces reliance on imports, and helps tailor these technologies to India’s specific climatic and operational conditions.

Integration of Dual-Axis Tracking Systems to Maximize Energy Harvest

A prominent market trend in the India CPV sector is the widespread adoption of dual-axis solar tracking systems. These tracking systems enable CPV modules to follow the sun’s movement both horizontally and vertically, ensuring that the concentrated sunlight remains aligned with the solar cells throughout the day.

In India, where direct sunlight varies with the seasons and day length, tracking systems are essential to maintaining high performance in CPV installations. By continuously adjusting module orientation, dual-axis trackers maximize direct normal irradiance capture, which is crucial for CPV since the technology depends on focused sunlight.

The inclusion of trackers significantly boosts the capacity utilization factor (CUF) of CPV plants, improving energy output by 25% to 40% compared to fixed-tilt systems. This is especially important in the Indian market, where maximizing return on investment is critical due to cost sensitivities. Moreover, advancements in tracking technology have made these systems more reliable and cost-effective. Modern trackers consume less power for operation, require lower maintenance, and are built to withstand India’s diverse weather conditions, from hot deserts to humid coastal areas.

Indian developers are increasingly integrating tracking systems into CPV projects to meet competitive bidding requirements and optimize LCOE (levelized cost of electricity). This trend also aligns with government and utility preferences for higher-performing renewable installations.

Tracking systems do add mechanical complexity and require skilled maintenance, which is gradually being addressed through training and local technical capacity building. Overall, dual-axis tracking represents a vital trend that enhances CPV competitiveness and viability across India’s solar market landscape.

Segmental Insights

Product Insights

The Refractors held the largest market share in 2025. Refractors dominated the India Concentrated Photovoltaic (CPV) market primarily due to their superior optical efficiency, cost-effectiveness, and practical advantages in the country’s solar environment. Refractive optics, most commonly in the form of Fresnel lenses, are widely preferred because they focus sunlight by bending (refracting) it through a transparent medium, concentrating solar energy onto small, highly efficient multi-junction solar cells.

One key reason for refractors’ dominance is their ability to achieve high concentration ratios with minimal optical losses. Fresnel lenses are designed to be lightweight and compact, which simplifies installation and reduces structural support requirements. This translates to lower balance-of-system costs—a critical factor in the cost-sensitive Indian renewable energy market. In contrast, reflective systems that use mirrors tend to be heavier, bulkier, and often require more robust mounting frameworks and regular maintenance to maintain mirror alignment and cleanliness.

India’s climate further favors refractors. The country experiences high levels of direct normal irradiance (DNI) in many regions, especially in western and southern states, providing ideal conditions for refractive CPV systems. Fresnel lenses maintain high optical clarity and focusing precision under intense sunlight and are less susceptible to dust and dirt accumulation compared to large mirror arrays, which is important given India’s dusty and sometimes harsh environmental conditions. Additionally, manufacturing and supply chains for Fresnel lenses are becoming more established in India and globally, helping to reduce costs and improve availability. This supports local production and scalability, aligning with government initiatives aimed at promoting indigenous manufacturing and reducing dependence on imports.

Concentration Insights

The High Concentration Photovoltaic held the largest market share in 2025. High Concentration Photovoltaic (HCPV) technology dominates the India Concentrated Photovoltaic (CPV) market primarily due to its ability to deliver superior efficiency and optimized land use, which align well with India’s solar energy goals and geographic conditions. HCPV systems concentrate sunlight hundreds to thousands of times onto small, highly efficient multi-junction solar cells, enabling significantly higher energy conversion efficiencies compared to traditional photovoltaic panels. This enhanced efficiency is particularly valuable in India, where rapid urbanization and industrial growth create intense competition for land, making space optimization critical.

India benefits from abundant direct normal irradiance (DNI), especially in regions such as Rajasthan, Gujarat, and Maharashtra, where clear skies and strong sunlight prevail. HCPV systems are specifically designed to harness high DNI, maximizing electricity generation during peak sunlight hours. The ability to generate more power per unit area reduces the land footprint, addressing one of the key challenges in India’s solar expansion. Moreover, HCPV technology integrates advanced dual-axis tracking systems to continuously align with the sun’s position, further boosting energy yield throughout the day. This feature enhances the capacity utilization factor (CUF) of solar installations, making HCPV projects more economically viable over their lifetime.

From a cost perspective, although HCPV systems have higher initial capital costs due to complex optics and tracking mechanisms, their superior performance and reduced balance-of-system costs can result in competitive levelized cost of electricity (LCOE) in the long term. Additionally, ongoing technological advancements and localized manufacturing efforts in India are gradually lowering these upfront expenses, improving market accessibility.

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Regional Insights

South India held the largest market share in 2025. South India dominated the Concentrated Photovoltaic (CPV) market in India due to several favorable geographic, climatic, and infrastructural factors. The region receives consistently high levels of direct normal irradiance (DNI), which is critical for CPV technology to perform efficiently. States like Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana benefit from clear skies and abundant sunlight for most of the year, providing ideal conditions for CPV systems that rely heavily on direct sunlight to concentrate solar energy.

The climatic stability in South India, with fewer prolonged cloudy or rainy days compared to northern and northeastern regions, ensures that CPV installations can operate at optimal capacity throughout the year. This leads to higher energy yields and improved economic viability, making the region attractive for developers and investors focused on maximizing return on investment.

South India also boasts relatively better-developed infrastructure, including grid connectivity, transportation networks, and industrial zones, which facilitates the deployment and maintenance of CPV projects. The presence of several renewable energy research centers and manufacturing hubs in the south further supports technological innovation and localization of CPV components, enhancing market growth. Moreover, state governments in South India have been proactive in promoting renewable energy through favorable policies, subsidies, and incentives that encourage investment in solar power, including advanced technologies like CPV. These policy frameworks reduce project risks and improve financial feasibility, accelerating market adoption.

The high electricity demand from rapidly urbanizing and industrializing areas in South India creates strong local markets for efficient solar solutions. The combination of natural solar advantages, supportive policies, infrastructure readiness, and robust energy demand makes South India a natural leader in India’s CPV market. This regional dominance is likely to continue as CPV technology matures and expands across the country.

Recent Developments

• On 22^nd May, Longi has introduced a range of new products tailored for both residential and utility-scale solar segments. These innovations aim to enhance efficiency and reliability, catering to the growing demand for sustainable energy solutions. By expanding their product portfolio, Longi seeks to provide advanced solar technologies that meet diverse customer needs, from individual homeowners to large-scale utility projects. This launch underscores Longi’s commitment to driving clean energy adoption and supporting India’s renewable energy goals with cutting-edge, high-performance solar solutions.
• In February 2025, Solex Energy has inaugurated a new solar module production line with an 800 MW capacity, marking a significant expansion in its manufacturing capabilities. This development aims to support the increasing demand for high-quality solar modules in India’s rapidly growing renewable energy market. The advanced production facility will enhance Solex Energy’s ability to supply efficient and reliable solar products for various applications, from residential to large-scale utility projects. This initiative reinforces the company’s commitment to accelerating clean energy adoption across the country.
• In February 2024, Grew Energy recently unveiled its latest cutting-edge solar PV modules at Intersolar 2024, showcasing advanced technology designed to boost solar energy efficiency and performance. These innovative modules aim to meet the growing demand for reliable and sustainable solar solutions in both residential and commercial sectors. The launch highlights Grew Energy’s commitment to driving progress in renewable energy by offering high-quality products that support cleaner power generation and contribute to global sustainability goals. For more details, visit energetica-india.net.

Key Market Players

• Tata Power Solar Systems Limited
• Adani Solar Energy Limited
• Reliance Solar Energy Private Limited
• Vikram Solar Limited
• Waaree Energies Ltd
• RenewSys India Pvt. Ltd.
• Hero Future Energies Pvt. Ltd.
• Azure Power India Pvt. Ltd.

Report Scope:

In this report, the India Concentrated Photovoltaic Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Concentrated Photovoltaic Market, By Product:

o   Reflectors

o   Refractors

• India Concentrated Photovoltaic Market, By Concentration:

o   High Concentration Photovoltaic

o   Low Concentration Photovoltaic

• India Concentrated Photovoltaic Market, By End Use:

o   Commercial

o   Utilities

o   Others

• India Concentrated Photovoltaic Market, By Region:

o   South India

o   North India

o   West India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Concentrated Photovoltaic Market.

Available Customizations:

India Concentrated Photovoltaic Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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