India Solar Energy Market
The India Solar Energy Market is analyzed in this report across installation type, technology, end user, and region, highlighting major trends and growth forecasts for each segment.
Introduction:
India’s solar energy sector is emerging as a cornerstone in the nation’s clean energy transition, reshaping the way power is generated, distributed, and consumed. It is driving significant innovation and operational efficiency across the energy value chain. Solar applications are playing a critical role in cutting carbon emissions, strengthening energy security, and delivering cost effective electricity solutions across both urban and rural regions. Core applications include utility scale solar parks, rooftop systems, off grid solar setups, and solar powered agricultural technologies.
The Indian solar energy market is undergoing exceptional growth, with projections indicating a valuation of USD 24.5 billion by 2030. This momentum is driven by the government’s ambitious renewable energy goals, surging electricity demand, falling solar panel prices, and supportive policy frameworks. Additional factors such as increasing environmental consciousness, rapid urbanization, and the strategic push to reduce fossil fuel dependency are further accelerating the uptake of solar technologies. From a market size of approximately USD 9.2 billion in 2024, the sector is expected to expand at a CAGR of 13% through the forecast period.
Market Dynamics:
The Indian solar energy market is expanding rapidly, driven by a powerful combination of environmental urgency, economic imperatives, and technological advancement. Growth is underpinned by rising electricity demand, escalating climate concerns, and the government’s assertive policy framework promoting renewable adoption most notably through initiatives like the National Solar Mission and the Production Linked Incentive (PLI) schemes. Continued reductions in the cost of solar photovoltaic (PV) modules, alongside improvements in panel efficiency, are making solar increasingly competitive with conventional energy sources. At the same time, growing investments in grid infrastructure and advancements in energy storage are accelerating the integration of solar power into the national energy mix.
The market presents strong growth potential across the value chain. Decentralized solar solutions especially rooftop and off grid systems are gaining momentum in rural and semi urban areas. Companies such as Loom Solar, Waaree Energies Ltd., and Tata Power Solar Systems Ltd. are actively expanding their presence in these underserved regions. Additionally, the deployment of solar powered agricultural machinery, EV charging infrastructure, and cold storage units is unlocking new opportunities. Firms including Mahindra Susten, ReNew Power, and Adani Solar are spearheading integrated clean energy solutions to meet this evolving demand.
Furthermore, the application of AI and IoT in solar asset management, the development of floating solar plants to address land scarcity, and the emergence of peer to peer (P2P) solar energy trading platforms powered by blockchain technology. The push toward smart grid integration and digital monitoring systems is further enhancing the reliability and efficiency of solar distribution networks. As environmental, social, and governance (ESG) criteria take center stage, corporates are increasingly committing to solar adoption as part of their decarbonization strategies. Collectively, these dynamics are positioning India for a more sustainable, resilient, and technology driven energy future.
Segment Highlights and Performance Overview:
| Category | Leading segment | Description |
| By Installation Type | Utility Scale Solar Power | Utility scale installations lead the Indian solar market, comprising approximately 75% of the country’s total installed capacity. These large scale, grid connected projects are the preferred model due to their ability to deliver cost efficiencies at scale and benefit from strong government backing through favorable policies and land allocation. |
| By Technology | Photovoltaic (PV) Systems | Photovoltaic (PV) technology dominates the Indian solar market, accounting for approximately 95% of total solar installations. Its widespread adoption is driven by lower costs, ease of deployment, and broad suitability across diverse applications. In contrast, Concentrated Solar Power (CSP) remains limited, constrained by higher capital costs and significant land requirements. |
| By End User | Government & Utilities | Government and utility entities hold the dominant position in the Indian solar energy market, accounting for approximately 65% to 70% of total market share. This leadership is driven by large scale, tender based solar park developments spearheaded by agencies such as the Solar Energy Corporation of India (SECI), NTPC, and various state electricity boards. Their centralized project execution and policy alignment continue to shape the market’s utility scale growth trajectory. |
Geographical Analysis:
The India Solar Energy market is examined across key regions, including North India, South India, Central India, and East & West India.
North India holds the largest share of the Indian solar energy market, led by Rajasthan’s strategic advantages, abundant land, high solar irradiance, and a strong pipeline of utility scale solar parks. Robust policy support and government led incentives have positioned the state as a central hub for solar deployment, making a substantial contribution to the country’s overall installed capacity.
Additionally, South India is poised for the fastest growth, with states such as Karnataka, Tamil Nadu, and Telangana at the forefront. Accelerated adoption of solar technologies, rising investment in both large scale and rooftop installations, and supportive regulatory frameworks are expected to drive market expansion in the region. Growth is projected at a strong CAGR of 15% to 20%, reflecting South India’s increasing role in shaping the sector’s next phase.
Competition Landscape:
The Indian solar energy market features a highly competitive environment shaped by major energy conglomerates, fast growing renewable energy firms, and forward looking solar technology providers. Market players are competing through large scale project execution, vertical integration across the value chain, and strategic alliances aimed at expanding generation capacity, optimizing costs, and advancing technological performance.
Key players profiled in this report include Tata Power Solar Systems Ltd., Adani Solar, ReNew Power, Mahindra Susten, Vikram Solar, Azure Power, Sungrow Power, Loom Solar, First Solar India, Waaree Energies Ltd., BHEL, and Indosolar.
Key Developments:
- In May 2024, the Maharashtra Electricity Regulatory Commission (MERC) approved the procurement of 420 MW of thermal power by Adani Electricity and Tata Power to meet Mumbai’s rising electricity demand during peak summer and October months. As part of this move, Tata Power will source 145 MW at rates between ₹5.36 and ₹5.47 per unit. The decision underscores the ongoing challenge of balancing India’s renewable energy ambitions with the need for stable, dispatchable power during high demand periods.
- On February 20, 2025, Vikram Solar expanded its production capacity by 1 GW at its Falta facility in West Bengal and upgraded its Oragadam plant in Chennai to manufacture advanced modules, including TOPCon and HJT technologies. This strategic expansion reinforces India’s domestic manufacturing capabilities and supports the nation’s broader self reliance goals by reducing dependence on imported solar components.
To learn more, contact us to purchase the full report, request a complimentary sample, or explore customized solutions tailored to your business needs our experts are ready to assist you.