India Solar Energy Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

India Solar Energy Market Trends & Summary

India Solar Energy Market is expected to reach 284.14 Giga Watt by 2033 from 92 Giga Watt in 2024, with a CAGR of 13.35% from 2025 to 2033. Government initiatives, declining solar technology costs, rising energy demand, growing environmental consciousness, supportive laws, technological breakthroughs, and the move towards clean and renewable energy sources are all factors driving the growth of the Indian solar energy industry.

The report India Solar Energy Market & Forecast covers by Technology (Solar Photovoltaic, Concentrated Solar Power), Application (Residential, Commercial, Industrial), Region (East India, West India, North India, South India) and Company Analysis, 2025-2033.

India Solar Energy Industry Overview

Due to the nation's aggressive climate goals and dedication to sustainable development, the solar energy market in India has become one of the renewable energy sectors with the quickest rate of growth in the world. India has enormous solar potential because of its position, which receives enough of sunlight all year round. This makes it the perfect place for large-scale solar deployment. Solar energy adoption has been further expedited by government programs like the National Solar Mission, production-linked incentives (PLI) for solar manufacturing, and advantageous regulations like net metering and subsidies. Additionally, solar power is becoming more and more appealing to residential, commercial, and industrial users due to the falling cost of solar panels and inverters and the rising cost of conventional electricity.

With the help of rooftop and utility-scale solar power projects, states like Rajasthan, Gujarat, Tamil Nadu, and Karnataka are at the forefront of solar power generation. Efficiency and dependability are being further increased through the integration of cutting-edge technology like energy storage systems and smart inverters. India's solar energy market is expected to develop steadily as environmental concerns and energy demands increase, contributing significantly to the nation's shift to a cleaner and more energy-secure future.

India's installed solar PV capacity increased from 49.3 GW in 2021 to approximately 62.8 GW in 2022, according to IRENA.  This represented a roughly 31% rise over the previous year.  Growth resulted from India's extensive solar PV installations, particularly for utility projects.  The Indian government intends to expand the installed capacity of solar photovoltaic systems.

In August 2022, the National Thermal Power Corporation Limited (NTPC) activated a photovoltaic solar facility close to Hazira in Surat.  With the 56 MW capacity of the Kawas solar PV project, NTPC will expand its solar footprint to 68,454 MW of commercial and group-installed capacity. The solar PV segment's share of the Indian solar energy market is anticipated to rise during the forecast period as a result of the completion of these kinds of projects.

Growth Drivers for the India Solar Energy Market

Government Initiatives and Policy Support

Strong government backing through numerous national and state-level initiatives has greatly boosted India's solar energy business. With specific goals and legislative frameworks, the National Solar Mission established the groundwork for widespread solar adoption. The Production Linked Incentive (PLI) program encourages self-sufficiency and lessens reliance on imports by promoting domestic solar production. Furthermore, state-specific policies encourage the use of solar power through tax breaks, subsidies, and net metering laws, particularly for decentralized and rooftop solar systems. Positive regulations for solar parks and open access solar projects have also been developed by the government. In addition to removing financial and legal obstacles for developers and investors, these programs foster a stable and supportive atmosphere for the long-term expansion of solar energy nationwide.

Rising Electricity Demand

The demand for electricity has sharply increased across all sectors of India due to the country's fast expanding industrial base, urbanization, and population. In the upcoming years, energy consumption is anticipated to increase dramatically as the nation strives to reach a $5 trillion economy. This growing demand cannot be sustainably met by traditional power sources alone without negatively impacting the environment. Clean, dependable, and scalable energy solutions are now desperately needed. With its enormous potential and falling costs, solar power has become a significant substitute. It provides a sustainable solution to close the energy gap and lessen reliance on fossil fuels. Thus, the increasing need for power directly drives the use of solar energy in the commercial, industrial, and residential sectors.

Grid Modernization and Storage Solutions

The dependability and efficiency of solar energy are being improved in large part by the modernization of India's electrical grid and the expanding use of energy storage technologies. Because solar energy is naturally sporadic, incorporating it into the grid necessitates sophisticated infrastructure that can manage supply and demand variations. Large-scale solar integration is supported and grid stabilization is aided by investments in automated load management technologies, smart grids, and real-time monitoring. Furthermore, surplus solar energy may now be stored and used during periods of low sunlight or high demand thanks to the advancement of battery energy storage systems (BESS). These developments not only increase energy security but also make solar energy a reliable, round-the-clock energy source for a range of uses.

Challenges in the India Solar Energy Market

Land Acquisition Issues

The difficulty of obtaining land for large-scale solar projects is one of the main issues facing the Indian solar energy business. Large tracts of land are needed for utility-scale solar projects, which are frequently located in isolated or rural areas with ambiguous legal titles and fragmented land ownership. The procedure is made more difficult by the high cost of land, particularly in areas close to cities or industries. Furthermore, local resistance, protracted approval processes, and regulatory obstacles usually cause delays in land acquisition. Conflicts over compensation, environmental issues, and community displacement may also surface, impacting project schedules and driving up development expenses. These difficulties show that in order to facilitate the quick development of solar infrastructure in India, more stakeholder involvement, simpler procedures, and clearer land rules are required.

Financing and Investment Barriers

The expansion of the solar energy business in India is still significantly hampered by financing, especially for small and medium-sized developers. Without access to reasonably priced, long-term financing options, solar projects often require a large upfront financial commitment, which can be challenging to obtain. Large companies may be able to draw in institutional investment, while smaller developers frequently face difficulties because of complicated loan procedures, high interest rates, and a lack of collateral. Potential investors are also discouraged by perceived risks such regulatory uncertainty, distribution firms' (DISCOMs') payment delays, and tariff volatility. Financing is further complicated by the creditworthiness of off-takers, particularly in rooftop and decentralized solar segments. For market growth to be inclusive and long-lasting, these obstacles must be removed through creative financial products, government-backed guarantees, and easier access to green capital.

North India Solar Energy Market

Due to good solar radiation, robust legislative backing, and the development of large-scale projects, the solar energy sector in North India is expanding quickly.  Solar installations are more prevalent in states like Rajasthan, Punjab, and Uttar Pradesh.  With notable capacity expansions and initiatives like the Bhadla Solar Park, one of the biggest in the world, Rajasthan stands out in particular.  Through rooftop and utility-scale solar projects, Punjab and Uttar Pradesh are also increasing their solar footprints.  Adoption in the residential sector has been further accelerated by government initiatives like the PM Surya Ghar Muft Bijli Yojana.  North India is a crucial area in propelling the nation's shift to renewable energy due to its plentiful land supply, strong solar insolation, and encouraging legislative frameworks.

South India Solar Energy Market

According to encouraging legislation, large investments, and a good climate, the South Indian solar energy business is expanding significantly. In terms of solar power output and capacity installations, states like Tamil Nadu, Karnataka, and Andhra Pradesh are setting the standard. ​

With a record-breaking 6,561 MW of solar power generation, Tamil Nadu has surpassed its previous peak of 5,398 MW in 2024. The total installed solar capacity in the state is currently 9,414 MW, indicating a consistent rise in the use of renewable energy. With almost 29% of all installations in 2024, Karnataka remains the state with the most solar open access capacity increases. Furthermore, a $5.63 billion investment is being contemplated by Tata Power Renewable Energy Ltd. to build 7 GW of green energy projects in Andhra Pradesh, which will include solar, wind, and hybrid energy solutions.

With growing investments and capacity expansions helping to make the region a leader in solar energy generation, these developments highlight South India's crucial position in India's shift to renewable energy.

West India Solar Energy Market

With states like Rajasthan, Gujarat, and Maharashtra in the forefront of capacity additions, West India is a crucial area in India's solar energy landscape. In 2024, more than 70% of India's utility-scale solar installations were installed by Rajasthan (7.09 GW), Gujarat (4.32 GW), and Maharashtra (1.73 GW). With a capacity of 2,245 MW, the Bhadla Solar Park in Rajasthan continues to be the largest solar park in the world. At 445 square kilometers, Gujarat's Khavda Renewable Energy Park is expected to grow to be the biggest in the world. By means of initiatives like the joint 6,600 MW power agreement with Adani Green Energy, Maharashtra is also increasing its solar footprint. West India's leadership in India's shift to renewable energy is shown by these developments.

India Solar Energy Segments

Technology Type - Market breakup in 2 viewpoints:

1. Solar Photovoltaic
2. Concentrated Solar Power

Application - Market breakup in 3 viewpoints:

1. Residential
2. Commercial
3. Industrial

Region - Market breakup in 4 viewpoints:

1. East India
2. West India
3. North India
4. South India

All the Key players have been covered from 4 Viewpoints:

1. Overview
2. Key Persons
3. Business Strategy
4. Financial Insight

Company Analysis:

1. Adani Solar
2. Emmvee Solar
3. Mahindra Susten Pvt. Ltd.
4. Sterling and Wilson Pvt. Ltd.
5. Tata Power Solar Systems Ltd.
6. Vikram Solar Limited
7. ReNew Power Pvt. Ltd.
8. NTPC Ltd.
9. Azure Power Global Ltd.

Report Details: