|Study Period:||2018- 2026|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Indian solar energy market is expected to witness a CAGR of more than 8% during the forecast period. The COVID-19 impact was mainly witnessed on the supply of solar panels and the delays in solar projects. The country was hit hard by the COVID-19 outbreak, which forced the government to employ either complete or partial lockdown, resulting in disruption of the solar panels manufacturing industry during the first half of 2020. Most projects of 2020 already got the finance clearances in 2019. Hence, these projects are expected to continue. However, the lockdown affected the construction and the availability of the solar panels resulting in project delays. However, this situation is expected to recover in 2021. Major factors driving the market are the declining cost of the solar modules and the government policies, like allowing 100% FDI under automatic route for renewable power generation and distribution projects, which is expected to increase the participation from global players into the Indian market. Moreover, the sharp decline in prices of solar technologies in recent years by more than 52% between 2010 and 2019 has been one of the biggest drivers in the adoption of solar PV in the country. However, the cost of modules produced in China is 8-10% cheaper than the one manufactured in India, and about 80-85% of the solar modules used in India are manufactured in China. Therefore, the huge dependency on imports has affected domestic manufacturing in the country, which is further expected to hinder the growth of the market.
- The solar PV segment dominated the market share in 2019, and it is expected to be the largest segment during the forecast period, owing to supportive government policies to develop clean energy generation in the country's energy mix.
- India has an abundance of solar irradiance and receives solar energy throughout the year. This has created enormous 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, provides an opportunity for the growth of the solar energy market in India.
- The government of India has taken several initiatives with the Ministry of New and Renewable Energy (MNRE), drafting plans and putting out tenders, which, in turn, is expected to drive the market during the forecast period.
Scope of the Report
The India solar energy market report includes:
Key Market Trends
Solar PV to Dominate the Market
- According to the Ministry of New and Renewable Energy (MNRE), India had a total installed capacity of more than 34 GW of solar PV. Moreover, India is endowed with a very vast solar energy potential. The average solar radiation incident over the land is in the range of 4-7 kWh per day. Solar power played an almost non-existent role in the Indian energy mix until 2007.
- However, solar energy is becoming inexpensive in comparison to other conventional energy sources due to innovations in the solar sector that reduced the global average selling prices of solar PV. With the anticipated improvements in technology and increased supply of panels from China/Europe, the capital costs are expected to stabilize at lower levels. As a result, investors/developers are expected to focus on the commercial viability of solar projects.
- With the government promoting solar installations in the rural areas by providing subsidized solar panels and another incentive, the solar PV installation is expected to increase during the forecast period and drive the market.
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Supportive Government Policies to Drive the Market
- The country has identified renewable energy potential, such as solar and wind, in decarbonizing the economy and meeting targets as per the Paris Agreement. Moreover, the Government of India has been bent toward increasing the share of renewables in the country's energy mix.
- The government is aiming at 25,750 MW of new power generation capacity from solar plants under the ambitious Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) scheme by 2022, with total financials of more than INR 32,000 crore.
- Moreover, in 2016, India's government pledged that 40% of the country's installed electricity capacity is expected to come from renewable sources by 2030, as part of its Nationally Determined Contribution (NDC) for the commitments made at the Paris Agreement.
- As part of the Paris Agreement commitments, India's government set an ambitious target of achieving 175 GW of renewable energy capacity by 2022. In July 2019, the government announced that it was planning to increase the renewable energy target to 500 GW by 2030 to clean up the air in its cities and lessen the rapidly growing economy's dependence on coal.
- The Ministry of New and Renewable Energy launched the scheme in 2019, with three components - installation of 10,000 MW capacity through small renewable energy-based power plants of capacity up to 2 MW each on barren or fallow land of farmers, installation of 17.5 lakh standalone off-grid solar water pumps, and solarisation of 10 lakh existing grid-connected agriculture pumps.
- Moreover, the government plans to add 175 GW of renewable energy by 2022, which includes 100 GW of solar and 60 GW of wind energy. The country has spent more on investment in solar PV than in all fossil fuel sources of electricity generation together. Therefore, the government schemes and plans to increase the renewables share in the energy mix are expected to drive the solar energy market in India.
The solar energy market in India is moderately fragmented. Some of the major companies operating in the market include Adani Group, EMMVEE SOLAR, Azure Power Global Limited, JinkoSolar Holdings Co. Ltd, and First Solar Inc.
- The government aims to achieve 175 GW of renewable power generation capacity by 2022. As a result of this ambitious goal, the renewable energy sector is expected to dominate the growth of the power generation sector during the forecast period. Out of the 175 GW, 100 GW was earmarked for solar capacity, with 40 GW (40%) expected to be achieved through decentralized and rooftop-scale solar projects. To achieve this huge target, the government launched several new programs in 2019, like solar rooftop phase-2, PM-KUSUM, and the development of an ultra mega renewable energy power park (UMREPPs).
- In January 2020, the Indian government embarked on an ambitious target of having 450 GW of renewable energy by 2030, as part of a stronger climate action plan. The MNRE has already initiated the drafting of plans and policies to meet the new escalated target. Additionally, the Indian government plans to introduce a stronger standard PPA for wind and solar projects, which may ensure stringent penalties for defaulting states. Moreover, letters of credit are planned to be made mandatory for procurement, and the ministry is also looking to go back to the ‘plug-and-play’ model of project development, ensuring land and grid availability before the projects are tendered.
- However, in March 2020, the government declared a complete lockdown amid the COVID-19 breakout, which has led to a delay in several projects and the cancellation of investments in the market. Furthermore, in early April 2020, due to the sharp decline in the Indian share market, the Government of India stopped FDI in all sectors of the country. This has affected the sector badly. However, with the betterment of situations, the investment and projects are further expected to pace to cope with the set targets in the later years of the forecast period.
Table of Contents
1.1 Scope of the Report
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Renewable Energy Mix, India, As of March 2021
4.3 Installed Capacity and Forecast, in GW, until 2026
4.4 Government Policies and Regulations
4.5 Recent Trends and Developments
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION - BY TECHNOLOGY
5.1 Solar Photovoltaic (PV)
5.2 Concentrated Solar Power (CSP)
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Domestic Players
188.8.131.52 Adani Group
184.108.40.206 Emmvee Solar
220.127.116.11 Mahindra Susten Pvt. Ltd
18.104.22.168 Sterling and Wilson Pvt. Ltd
22.214.171.124 Tata Power Solar Systems Ltd
126.96.36.199 Vikram Solar Limited
188.8.131.52 ReNew Power Pvt. Ltd
184.108.40.206 NTPC Ltd
220.127.116.11 Azure Power Global Ltd
6.3.2 Foreign Players
18.104.22.168 JinkoSolar Holdings Co. Ltd
22.214.171.124 First Solar Inc.
126.96.36.199 Hanwha Q Cells Co. Ltd
188.8.131.52 SMA Solar Technology AG
184.108.40.206 Trina Solar Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The India Solar Energy Market market is studied from 2018 - 2026.
What is the growth rate of India Solar Energy Market?
The India Solar Energy Market is growing at a CAGR of >8% over the next 5 years.
Who are the key players in India Solar Energy Market?
Adani Group, EMMVEE SOLAR, JinkoSolar Holdings Co. Ltd, First Solar Inc. are the major companies operating in India Solar Energy Market.