India Solar Energy Market By Technology (Solar Photovoltaic (PV) and Concentrated Solar Power (CSP)), 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, Size, Share, Trends, Opportunity, and Forecast, 2029F

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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 toBoost 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.

Recent Development

• The largest investment firm in Norway, KLP, and Norfund, which run the Norwegian Climate Investment Fund, entered into a deal in August 2022 to purchase a 49% stake in a 420 MW solar power facility in Rajasthan for Rs. 2.8 billion (USD 35.05 million).
• The Indira Gandhi International Airport (IGIA) in Delhi is now the first airport in India to function solely on hydroelectric and solar energy. The onsite solar power plants provide around 6% of the airport's electrical needs.
• In February 2022, Creduce Technologies-HCPL JV announced that it has won the bid for Satluj Jal Vidyut Nigam's project to produce more than 80 million carbon credits, which is India's largest hydropower carbon credits project.
• The Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) won a contract to Tata Power, the largest energy supplier in India, in December 2021 for the construction of a 300 MW wind-solar hybrid power plant.
• Reliance New Energy Solar Ltd. (RNESL) announced two acquisitions in October 2021 to expand its capabilities. The two purchases, Sterling & Wilson Solar in India and REC Solar Holdings AS (REC Group), both topped USD 1 billion and are anticipated to help Reliance reach its goal of installing 100 GW of solar energy at Jamnagar, by 2030.
• Copenhagen Infrastructure Partners (CIP) and Amp Energy India Private Ltd. announced an investment agreement in August 2021 to enable combined equity investments, totaling USD 200 million across Indian renewable energy projects.
• National Thermal Power Corporation Renewable Energy Ltd. (NTPC REL), a fully owned subsidiary of NTPC, issued a tender in July 2021 for the construction of the nation's first environmentally friendly hydrogen refueling station in Leh, Ladakh.
• By May or June 2022, 100 MW Floating Solar Power Project fully operationalized at NTPC-Ramagundam, capable of advanced technology and environment-friendly features. Total commercial operation of Floating Solar Capacity in Southern Region rises up to 217 MW.
• Contracts for 47 parks with a total capacity of more than 25 GW have been given by the Solar Energy Corporation of India (SECI), which executed large-scale central auctions for solar parks.

Market Segmentation

India Solar Energy Market is segmented based

Market Players

Major market players in the India Solar Energy Market are