|
Forecast Period
|
2025-2029
|
|
Market Size (2023)
|
75.23 GW
|
|
Largest Market
|
South India
|
|
CAGR (2024-2029)
|
25.46%
|
|
Fastest Growing Segment
|
Industrial
|
India Solar Energy Market is anticipated to grow at
a steady pace in the forecast period, 2025-2029, due to the favorable government regulations
and rising number of solar PV system. The fourth most desirable renewable energy market in the world is
located in India. As of 2020, India's installed capacity for renewable energy
was in fourth place. The installed capacity for renewable energy has
increased over the last several years, with a CAGR of 15.92% between 2016 and 2022.
The market for renewable power is expanding most rapidly in India, where new
capacity additions are anticipated to triple by 2026. The government's enhanced support and the
economy's improvement have made the industry more appealing to investors.
Renewable energy is going to be essential as India attempts to satisfy its own
energy requirement, which is further anticipated to total 15,820 TWh, by 2040.
Solar
energy is the term used to describe the energy derived from solar radiation,
which can be captured and transformed into a variety of types, including heat
and electricity. This energy is abundant and sustainable, making it a desirable
replacement for conventional fossil fuels that are limited and cause climate
change. Different technologies can be used to capture solar energy, including
photovoltaic cells, and concentrated solar power systems, which turn sunlight
directly into electricity, that utilize the heat of the sun to produce
energy for a number of purposes like electricity generation and others.
Utilizing solar energy provides a variety of advantages, such as lowering
greenhouse gas emissions and reliance on fossil fuels, while also promoting a
cleaner and more sustainable energy future.
Government
Promoting High-Efficiency Solar PV Module Policies Driving the Market Growth
Recently,
several government measures were planned to boost solar energy's future
contribution to India's mix of renewable energy sources. In April 2021, a
Production Linked Incentive (PLI) Scheme called the "National Programme on
High-Efficiency Solar PV Modules" was authorized by MNRE with an
investment of INR 4,500 crore. (USD 545.1 Million) by providing Production
Linked Incentive (PLI) on sales of such solar PV modules. The plan offers a
number of rewards to stimulate the development of integrated manufacturing
facilities for high-efficiency solar PV modules. The goal is to increase local
manufacturing capacity and exports in the upcoming years.
Additionally,
the 300 MW defense programme, the 500 MW VGF (Viability Gap Funding) programme,
and the Solar Park Programme, are some of the other examples of government
initiatives towards Solar Energy. The Ministry of New and Renewable Energy
(MNRE) was conducted during the past three years and consequently, India
announced an ambitious goal of 450 GW of renewable energy by 2030, in
January 2020.
The
Gujarat government launched "the Surya Urja Rooftop Yojana" project
in December 2020 with the goal of installing solar roofs for 8 lakh household
users. This programme provides a 40% state subsidy for installing systems up to
3 kW and a 20% state subsidy for larger systems. Owing to these latest motions
in energy sector, the India Solar Energy Market is expected to register a high
CAGR in the forecast period.
Reduction
in the Cost of Solar PV Technology
The prospects
for the industry are anticipated to arise from an increase in off-grid solar
utilization driven by reducing costs of solar PV technology and favorable national
attempts to reduce carbon emissions. For instance, in India, the Department of
Energy's (DOE) SunShot Initiative depends on the development of more effective,
inexpensive photovoltaics (PV) and concentrating solar power (CSP) technologies
with less cost. Solar power installed capacity has increased by more than 18
times, from 2.63 GW in March 2014 to 49.3 GW at the end of 2021. In 2022, till
November, India has added 12 GW of solar power capacity. The projects'
objectives are to: Boost efficiency, cut expenses, and Improve dependability.
To reduce
carbon emission, India has set goals to reach net-zero % carbon emissions target
by 2070 and to achieve cumulative 50% of renewable energy installations by
2030, lowering the carbon intensity of the country's economy by less than 45%.
Additionally, by 2030, India aims to possess produced five million tons of
renewable hydrogen. A total of 125 GW of renewable energy capacity and now 57
solar parks with a combined capacity of 39.28 GW have been authorized.
Growing Awareness
of Solar Projects & Latest Investments in Renewable Energy
India is
moving towards renewable energy consumption, owing to the growing carbon
emission awareness. For instance, the Uttar Pradesh New and Renewable Energy
Development Agency (UPNEDA) launched a bidding procedure in January 2022, and
SJVN (Satluj Jal Vidyut Nigam Ltd) won the contract for a 125 MW solar project
in Uttar Pradesh. It consists of a 50 MW and a 75 MW grid-connected solar
project in the Kanpur Dehat and Jalaun districts, respectively. Additionally, the
largest solar plus battery project in India will be completed by Tata Power in
December 2021, according to the Solar Energy Corporation of India. The
agreement covers both a 120 MWh utility-scale battery energy storage system and
a 100 MW EPC solar project. About INR 945 crore (USD 114.4 Million) was spent
on the project, overall.