Solar Panel Market in India

Solar Panel in India Trends and Forecast

The future of the solar panel market in India looks promising, with opportunities in the commercial, residential, and industrial applications. The global solar panel market is expected to reach an estimated $248.1 billion by 2031, with a CAGR of 7.6% from 2025 to 2031. The solar panel market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are growing awareness of the benefits of solar energy, increasing demand for renewable energy, and the need to reduce carbon emissions.

• Lucintel forecasts that, within the application category, photovoltaic is expected to witness higher growth over the forecast period due to its affordability, easy installation, and efficiency at converting sunlight into electricity.
• Within the end use category, the commercial sector is expected to witness the highest growth over the forecast period due to growing preference for solar energy in this sector to reduce electricity expenses.

Emerging Trends in the Solar Panel Market in India

Indian solar panel industry is undergoing rapid transformation, prompted by both the governments aggressive renewable energy targets and technological changes. The nation is targeting 500 GW of non-fossil fuel capacity by 2030, with solar power being an integral part of this shift. The solar industry is seeing emerging trends in the form of policy changes, technological advancements, and a focus on sustainability. These trends are influencing the future of solar energy in India, driving adoption rates, market growth, and integration into the overall energy mix.

• Solar Auctions on the Rise: The Indian government has been increasing solar auctions as a means to decrease project costs and drive capacity addition. These competitive bidding exercises ensure lower tariffs and encourage investment in large-scale solar installations. The emphasis on auctions leads to private sector involvement, reducing the overall cost of solar energy. With more states launching their bidding rounds, India is poised to experience a remarkable boost in solar energy capacity, turning it into a major global renewable energy player.
• Emphasis on Energy Storage Integration: Given the intermittent nature of solar power, energy storage systems are increasingly becoming the focus in India. Solar projects are incorporating battery storage technologies to stabilize energy supply, especially for off-grid regions and during non-sunny hours. This will stabilize the grid supply and make solar power available at all hours. The increasing scope for solar-plus-storage solutions is also supporting investment in the formation of cost-effective and innovative storage solutions, which are crucial for Indian energy security and grid stability.
• Rooftop Solar Growth: Rooftop solar deployments have grown considerably in India, particularly in the residential and commercial sectors. This is facilitated by government subsidies and net metering policies. With people and companies looking for ways to reduce their electricity bills and their carbon footprint, rooftop solar installations provide a good solution. The decentralized nature of rooftop solar makes it especially useful for cities with very little land space for massive solar farms, and it is set to make a big impact on Indian renewable energy targets.
• Solar-Powered Electric Vehicles (EVs): The expansion of electric vehicles in India is opening the door for solar-powered EV infrastructure. Solar charging stations are being created to energize electric vehicles with clean electricity, decreasing the carbon footprint of transportation. As Indian electric vehicle market grows, the demand for renewable charging technologies, like solar-powered charging stations, increases. This cooperation between solar power and electric mobility is in alignment with Indian aim to move away from emissions and toward more sustainable modes of transport, which presents a good growth opportunity for both industries.
• Corporate Renewable Power Purchase Agreements (PPAs): Indian companies are increasingly entering into corporate renewable power purchase agreements (PPAs) for solar power. Corporations are preferring to buy solar power directly from developers, bypassing conventional utilities. The trend is fueled by the desire for low-cost energy solutions, sustainability targets, and the increasing demand for green energy from consumers. PPAs bring long-term renewable energy purchasing certainty for developers and support businesses in meeting their sustainability obligations.

These evolving trends are revolutionizing Indian solar panel market by fueling growth, innovation, and sustainability. Solar auctions, integration of energy storage, rooftop solar installations, solar-powered EV infrastructure, and corporate PPAs are interlinked, which will enable India to go fully green more rapidly. As India continues to adopt and scale up these trends, it is positioning itself to become a world leader in solar power, making notable progress toward energy self-sufficiency and a greener tomorrow.

Recent Developments in the Solar Panel Market in India

Indian solar panel market has seen numerous important developments, each of which is contributing to the renewable energy sector in India. Through government policies, private investment, and technological upgrades, the market is gearing up for unprecedented growth. The governments ambitious solar power target and encouraging policies have led to numerous recent developments that are adding to solar capacity, promoting adoption, and helping create a favorable climate for investments in the sector.

• Government Solar Initiatives and Policy Support: The government of India has launched several initiatives to drive solar capacity expansion. Notable developments include the launch of the National Solar Mission (NSM), which has paved the way for the nation to reach its goal of 100 GW of solar power by 2022. The application of policies such as net metering, subsidies, and feed-in tariffs has increased the accessibility and affordability of solar power. These efforts have spurred investments in solar infrastructure, bringing India to the leading edge of international renewable energy markets.
• Decreasing Prices of Solar Panels: In the last few years, the prices of solar panels in India have decreased dramatically due to advancements in solar technology globally and among manufacturers. Reduced prices for solar panels and balance-of-system components have lowered the cost of solar installations for residential and commercial consumers alike. The downward trend in prices is projected to increase the adoption of solar power across segments, assisting India in meeting its aggressive renewable energy goals and ensuring solar power becomes an increasingly viable energy option for the masses.
• Large-Scale Solar Farms: India has witnessed massive growth in the creation of large-scale solar parks and solar farms. The government has encouraged the setting up of huge solar parks such as the Bhadla Solar Park in Rajasthan, which is among the largest in the world. These projects are making solar energy more affordable by benefiting from economies of scale. Large solar farms are providing a clean source of energy to the grid in a reliable manner and are also helping India reach its renewable energy goals. This trend is set to continue, further increasing the adoption of solar power.
• Private Sector Investment and International Partnerships: There has been an explosion of private sector investment in Indian solar energy market, with international companies and investors taking a predominant role in funding solar projects. Global companies are entering into partnerships with Indian businesses to build solar energy capacity. This includes joint ventures, foreign direct investments (FDI), and partnerships between technology providers and solar developers. The injection of capital and talent is assisting India in upgrading its solar infrastructure, increasing installation rates, and promoting innovation in the sector.
• Emphasis on Solar Technology Innovation: Solar panels are becoming more efficient and cheaper due to technological advancements, which is leading to increased adoption. Technologies such as bifacial solar panels, which harness the suns energy from both sides of the panel, and the creation of tandem solar cells are enhancing the efficiency of solar power generation. India is also investing in research and development of advanced storage technologies to address the intermittency of solar power. These technologies will help solar power become more reliable and affordable, leading to the expansion of Indian solar market.

These recent trends are leading to great changes in Indian solar panel market, clearing the way for accelerated growth and wider adoption. With government aid, declining costs, large project implementations, augmented private investment, and technological development, India is poised to be a global top player in solar energy. The fast rate of development will be instrumental in realizing Indian renewable energy goals and improving the energy security of the country.

Strategic Growth Opportunities for Solar Panel Market in India

Indian solar panel industry is set to witness tremendous growth due to the nations ambitious renewable energy goals, rapid technological innovations, and supportive policy environments. The increasing demand for clean energy, energy independence, and sustainability is driving the use of solar power across different industries. This dynamic market presents numerous growth prospects, with primary applications being key to expanding solar energy usage in the country. The following are five key growth opportunities for solar energy in India, each holding the potential to shape the future of the industry.

• Rooftop Solar Installations: Rooftop solar systems represent one of the most promising sectors in Indian solar industry, particularly in urban and semi-urban areas. Government regulations such as net metering and subsidies have increased the appeal of rooftop installations for residential and commercial properties. Rooftop solar reduces electricity bills, improves energy security, and offers grid independence. The increasing adoption is also fueled by the availability of funding options. As India aims to increase rooftop solar capacity, this segment is poised for strong growth, contributing significantly to the countries renewable energy target.
• Utility-Scale Solar Power Plants: Utility-scale solar power plants, including solar parks and large farms, play a key role in achieving Indian ambitious solar energy goals. Large installations benefit from economies of scale, lowering the cost per megawatt. Government initiatives, such as the establishment of large solar parks like the Bhadla Solar Park in Rajasthan, are driving this trend. As India seeks to produce a majority of its electricity from renewable sources, these large projects will help raise solar power capacity while providing stable, affordable energy to the national grid.
• Solar-Powered EV Charging Infrastructure: The rise of electric vehicles (EVs) in India offers an opportunity to integrate solar power into the transportation sector. Solar-powered EV charging stations provide a clean, sustainable energy source for electric vehicles, addressing both energy security and environmental concerns. As the governments push towards electrification and reducing carbon emissions intensifies, the demand for solar-powered EV infrastructure is expected to increase. This application not only supports Indian shift towards green mobility but also expands solar power usage in a critical, high-demand sector.
• Agrivoltaics (Solar Farming): Agrivoltaics, the use of solar panels to generate electricity while simultaneously supporting agricultural activities, is an emerging trend in India. By placing solar panels over crops, this system maximizes land use by generating electricity while maintaining agricultural productivity. This application is particularly advantageous for rural areas, where energy and water scarcity are challenges. Agrivoltaics boosts farmersÄX%$%X income through dual revenue streams—crop production and energy generation—and helps India meet its renewable energy targets while promoting agricultural sustainability.
• Off-Grid Solar Solutions: Off-grid solar solutions are transforming energy access in remote and underserved regions of India, where the conventional power grid is absent. Solar-powered microgrids, home systems, and community-based solar solutions offer affordable, reliable electricity to rural households and businesses. The increasing demand for clean energy solutions in these areas, coupled with favorable policies and foreign financing, is driving the growth of off-grid solar technologies. As costs decrease and scalability improves, these systems represent a significant growth opportunity, particularly in rural India.

These strategic growth opportunities in rooftop solar, utility-scale solar power plants, EV charging infrastructure, agrivoltaics, and off-grid solar systems are transforming Indian solar panel market. Collectively, they offer multifaceted opportunities for market growth while enhancing energy security, sustainability, and economic development. As the market matures and costs decline due to technological innovations, the solar industry in India will remain crucial to the country’s shift toward renewable energy.

Solar Panel Market in India Driver and Challenges

The solar panel market in India is influenced by various technological, economic, and regulatory factors. These drivers and challenges are vital in shaping the growth of the market, presenting both opportunities and obstacles. The Indian governments ambitious renewable energy goals, growing energy demand, and focus on sustainability are key drivers, while high initial investments, regulatory complexity, and infrastructure limitations are significant challenges. Understanding these factors is essential for navigating Indian evolving solar energy landscape.

The factors responsible for driving the solar panel market in India include:
• Government Policies and Incentives: The Indian governments commitment to renewable energy is a major driver of solar panel market growth. Policies such as the National Solar Mission, tax credits, subsidies, and net metering have been instrumental in supporting the industry. Additionally, the target of 500 GW of non-fossil fuel energy by 2030 has spurred investments in solar projects. These policies not only encourage domestic solar adoption but also attract foreign investment, enabling India to move toward energy independence and sustainability.
• Declining Costs of Solar Technology: One of the primary drivers of solar energy adoption in India is the sharp decline in the cost of solar panels. Technological innovations and economies of scale have significantly reduced the cost of solar power generation. The reduction in the cost of solar panels and storage solutions has made solar energy more affordable for consumers, businesses, and utilities. As costs continue to decrease, solar energy adoption is expected to grow across residential, commercial, and industrial sectors, further supporting India’s renewable energy ambitions.
• Rising Energy Demand: Indian rapidly growing energy demand, driven by industrialization, urbanization, and population growth, is another significant driver of the solar market. The nations reliance on fossil fuels for power generation has led to energy insecurity and environmental concerns. Solar power provides a clean, domestic, and scalable solution to address this growing demand. By investing in solar energy, India can reduce its dependence on imported fuels, enhance energy security, and create a cleaner, more sustainable energy mix.
• Environmental Sustainability and Climate Change Goals: Indian commitment to combating climate change and reducing carbon emissions is another key driver of solar energy adoption. As part of the Paris Agreement, India has pledged to lower its carbon intensity and increase the share of renewable energy in its energy mix. Solar energy plays a central role in achieving these sustainability goals, as it produces little to no carbon emissions. Government interventions and increasing public awareness of environmental sustainability are driving demand for clean, renewable solar energy.
• Foreign Partnerships and Private Sector Investment: Private sector investment and foreign direct investment (FDI) are crucial to expanding India’s solar energy capacity. Capital inflows from both domestic and international investors have fueled the growth of solar projects, particularly large-scale solar parks. International partnerships, joint ventures, and technology transfers have introduced global expertise, advanced technologies, and financial resources, allowing India to scale up its solar energy infrastructure. This investment is essential to meeting the country’s renewable energy targets and improving the competitiveness of the solar industry.

Challenges in the solar panel market in India are:
• High Initial Capital Investment: A major challenge facing India’s solar panel market is the high initial capital required to set up solar projects. Despite a decrease in costs, the upfront expenses for acquiring and installing solar systems, especially for residential and small-scale commercial projects, remain a barrier. Financial constraints, particularly for rural families and small businesses, hinder the mass adoption of solar power. Offering financing models, incentives, and reducing capital costs are critical to overcoming this challenge.
• Regulatory and Permitting Challenges: The regulatory environment surrounding solar projects in India can be complex and time-consuming. Obtaining permits, complying with local zoning laws, and dealing with grid connection regulations can delay project timelines. Regulatory inconsistencies and a lack of streamlined procedures for setting up solar projects may also discourage investment. Simplifying regulatory frameworks, enhancing transparency, and providing clearer guidelines for developers are necessary to speed up the deployment of solar projects.
• Grid Infrastructure and Storage Limitations: Integrating solar power into Indian existing grid infrastructure is a significant challenge. The intermittent nature of solar power, due to variations in sunlight, can lead to grid inefficiency and instability. India’s grid infrastructure is not always equipped to handle the fluctuating nature of solar energy. Furthermore, energy storage systems, which can store excess solar power for use during non-sunny periods, are still under development. Expanding and modernizing grid infrastructure and investing in energy storage technologies are essential to integrating solar energy into the national grid effectively.

The factors of government incentives, technological advancements, rising energy demand, environmental sustainability, and private sector investment are driving the growth of India’s solar panel market. However, challenges such as high initial costs, regulatory complexities, and grid integration issues must be addressed to ensure sustainable and efficient growth. By overcoming these hurdles, India can further develop its solar industry, reduce reliance on fossil fuels, and meet its renewable energy targets, contributing to a cleaner, greener, and more sustainable energy future.

List of Solar Panel Market in India Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, solar panel companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the solar panel companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10

Solar Panel Market in India by Segment

The study includes a forecast for the solar panel market in India by type, application, and end use.

Solar Panel Market in India by Type [Analysis by Value from 2019 to 2031]:

• Crystal Silicon
• Monocrystalline Silicon
• Polycrystalline Silicon
• Others

Solar Panel Market in India by Application [Analysis by Value from 2019 to 2031]:

• Photovoltaic
• Concentrated Solar Power

Solar Panel Market in India by End Use [Analysis by Value from 2019 to 2031]:

• Commercial
• Residential
• Industrial

Features of the Solar Panel Market in India

Market Size Estimates: Solar panel in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Solar panel in India market size by type, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different types, applications, and end uses for the solar panel in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the solar panel in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q.1 What are the major drivers influencing the growth of the solar panel market in India?
Answer: The major drivers for this market are rising concern towards environmental pollution, significant demand for renewable energy, and escalating demand for solar panels from residential and commercial projects.
Q2. What are the major segments for solar panel market in India?
Answer: The future of the solar panel market in India looks promising with opportunities in the commercial, residential, and industrial applications.
Q3. Which solar panel market segment in India will be the largest in future?
Answer: Lucintel forecasts that photovoltaic is expected to witness higher growth over the forecast period due to its affordability, easy installation, and efficient at converting sunlight into electricity.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the solar panel market in India by type (crystal silicon, monocrystalline silicon, polycrystalline silicon, and others), application (photovoltaic and concentrated solar power), and end use (commercial, residential, and industrial)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Solar Panel Market in India, Solar Panel Market in India Size, Solar Panel Market in India Growth, Solar Panel Market in India Analysis, Solar Panel Market in India Report, Solar Panel Market in India Share, Solar Panel Market in India Trends, Solar Panel Market in India Forecast, Solar Panel Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.