India Solar Photovoltaic Industry

India Solar Photovoltaic Market Analysis

The India Solar Photovoltaic Market is expected to register a CAGR of greater than 8.9% during the forecast period.

• The solar PV rooftop segment is expected to dominate the market during the forecast period. Owing to increasing solar PV installations in the commercial and industrial segment during recent years.
• India has an abundance of solar irradiance and receives solar energy throughout the year. This has created umpteen opportunities to exploit solar energy from the sunniest sites in the country, especially Rajasthan, Gujarat, and Andhra Pradesh. The factor mentioned above, clubbed with foreign investment and extensive R&D projects to improve the technology, provides ample opportunities for the growth of the solar energy market in India.
• The market is also propelled by supportive government policies, particularly the plans formulated by the Ministry of New & Renewable Energy (MNRE) to encourage renewables-based power generation.

India Solar Photovoltaic Market Trends

Rooftop Solar PV Segment Expected to Dominate the Market

• India is witnessing increasing solar installations from residential and commercial sectors. The growth in rooftop solar installations in India is driven by savings in electricity bills and increasing consumer acceptance, along with fierce competition in the market.
• According to the International Renewable Energy Agency (IRENA), India's installed solar PV capacity was around 38.98 GW in 2020, up from 34.86GW in 2019, recording a growth of around 11% in the year. The growth is the result of rapid deployments of rooftop PV installations in India.
• In November 2021, MNRE invited Expression of Interest (EOI) applications to conduct Phase-II of the Grid Connected Rooftop Solar Programme evaluation study. The program is part of the National Solar Mission, which aims to install a 40GW capacity of grid-connected solar rooftop systems by 2022.
• Morevoer, In July 2021, Tata Power Solar bagged a contract worth USD 50.37 million from the Kerala State Electricity Board (KSEB) to develop 84 MW of solar rooftop projects in the state. The company. The project includes solar installations of 64 MW for individual households with solar capacity ranging from 3 kW to 10 kW and 20 MW for housing society projects.
• Similarly, In December 2021, Enphase Energy India has commissioned a 103 kW of rooftop solar project in Karnataka. The project will help to meet 25 percent of the total energy requirement of the building and offset 140 tonnes of Co2 emissions per year.
• Owing to such developments, the rooftop solar PV segment is expected to dominate the market during the forecast period.

Supportive government policies to Drive the market

• The Solar power share in the renewable power generation mix of India was recorded as 58.7 TWh, as of 2020. The country has envisaged various government initiatives in the recent years to increase this share of solar energy in the near future.
• In April 2021, MNRE approved a Production Linked Incentive (PLI) Scheme, namely, 'National Programme on High-Efficiency Solar PV Modules', with an investment of INR 4,500 crores. The scheme has various provisions for supporting the set up of integrated manufacturing units of high-efficiency solar PV modules by offering Production Linked Incentive (PLI) on sales of such solar PV modules. It aims at enhancing domestic manufacturing capabilities and exports for years to come.
• Some other schemes implemented by the Ministry of New and Renewable Energy (MNRE) in the last three years are the Solar Park Scheme, the 300MW defense scheme, and the 500MW of VGF (Viability Gap Funding) scheme. In January 2020, India again boarded on an ambitious target of having 450 GW of renewable energy by 2030. The announcement was made by the central government, which is already working on the project of installing around 100GW of solar PV energy by 2022.
• In December 2020, the Gujarat government implemented 'the Surya Urja Rooftop Yojana' scheme, that aimed at installation of solar rooftops for 8 lakh residential consumers by March 2022. Under this scheme, 40% of state subsidy will be provided on installation of systems up to 3 kW and 20% subsidy for 3 kW- 10 kW systems.
• All these developments are likely to give a boost to the solar energy market of India in the coming years.

India Solar Photovoltaic Industry Overview

The India Solar Photovoltaic (PV) Market is fragmented. Some of the major players includes Tata Power Solar, Adani Group, Azure Power Global Limited, EMMVEE SOLAR, Mahindra Susten Pvt Ltd.

India Solar Photovoltaic Market Leaders

India Solar Photovoltaic Market News

• In January 2022, SJVN (Satluj Jal Vidyut Nigam Ltd.) bagged a solar project of 125MW in Uttar Pradesh, through a bidding process held by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). It includes a 75MW grid-connected solar PV project in Jalaun and a 50MW solar project in Kanpur Dehat districts.
• In December 2021, Tata Power clinched the largest solar plus battery project in India from Solar Energy Corporation of India. The contract includes a 100MW EPC solar project and a 120MWh utility-scale Battery Energy Storage System. The total project outlay was around INR 945 crores.