India Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Technology (Solar Photovoltaic (PV) and Concentrated Solar Power (CSP))

Market Snapshot

 India Solar Energy Market - Market Summary
Study Period: 2019- 2026
Base Year: 2020
CAGR: >8 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The solar energy market in India is expected to grow at a CAGR of more than 8% during the forecast period. The COVID-19 impact was mainly witnessed on the supply of solar panels resulting in 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 and 2021 already got the finance clearances in 2019. 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 the coming years.​ 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 2020 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 2020, 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:

Report scope can be customized per your requirements. Click here.

Key Market Trends

Solar PV Technology to Dominate the Market

  • According to the Ministry of New and Renewable Energy (MNRE), India, as of March 2021, had a total installed capacity of more than 40 GW of solar energy. 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.
  • In July 2020, India commissioned a 750 MW Rewa solar project in Madhya Pradesh. The Rewa Ultra Mega Solar Power comprises three solar generating units, each with 250 MW capacity. The project is implemented by Rewa Ultra Mega Solar (RUMSL), a joint venture of Madhya Pradesh UrjaVikas Nigam (MPUVN), and Solar Energy Corporation of India (SECI). RUMSL was provided with central financial assistance of INR 1.38 billion for the project development.​
  • In Septemeber 2021, Bharat Heavy Electricals Limited (BHEL) has successfully commissioned India’s largest Floating Solar PV plant. The plant is located at NTPC Simhadri in the state of Andhra Pradesh, the 25 MW floating SPV project covers an area of 100 acres.
  • 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.
India Solar Energy Market - Solar PV Installed Capacity

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 working 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 (MNRE) 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.
India Solar Energy Market - Total Solar Energy Installed Capacity

Competitive Landscape

The solar energy market in India is 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. among others.

Recent Developments

  • With the recent surge (2nd Wave) in COVID-19 cases in April 2021, India is expected to delay nearly 4 GW of solar PV projects with the planned commission in 2021 and these are expected to get commissioned in 2022. Moreover, there will again be a delay in the project commissioning schedule for utility-scale solar projects because of lack of labor and delay in equipment supply due to lockdown in different states. Even the rooftop market is likely to face payment issues for OPEX projects with the uncertainty looming over full or partial closure of manufacturing and business units which might also add to liquidity crunch woes.​
  • In March 2021, Delhi-based SolarArise India Projects Pvt Ltd has commissioned a 75-MW solar park in the Indian state of Uttar Pradesh. The photovoltaic (PV) facility is operated by SolarArise through Talettutayi Solar Projects Two Pvt Ltd and is capable of generating 120 million kWh per year.
  • In April 2021, Indian renewables developer Adani Green Energy Ltd commissioned a 50-MW solar farm in Chitrakoot, in India’s Uttar Pradesh state. The solar farm will operate under a 25-year power purchase agreement (PPA) with the Uttar Pradesh Power Corporation Limited (UPPCL) for INR 3.07 (USD 0.041/EUR 0.0343) per kWh.
  • In June 2021, Norwegian renewable power producer Scatec ASA announced its first project in India i.e., a 900-MW solar partnership with local developer ACME Group. The construction of the facility is seen to begin in 2021 and completion is scheduled for 2022. Once up and running, the plant is expected to generate 1,600 GWh a year and will be selling the output to Solar Energy Corporation of India (SECI) under a 25-year power purchase agreement (PPA) won in a 2018 tender.

Table of Contents


    1. 1.1 Scope of the Report

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Renewable Energy Mix, India, As of March 2021

    3. 4.3 Solar Energy Installed Capacity and Forecast, in GW, till 2026

    4. 4.4 Government Policies and Regulations

    5. 4.5 Recent Trends and Developments

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 PESTLE Analysis

    9. 4.9 Assesment of Impact of COVID-19 on the Market


    1. 5.1 Solar Photovoltaic (PV)

    2. 5.2 Concentrated Solar Power (CSP)


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Domestic Players

        1. Adani Group

        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

      2. 6.3.2 Foreign Players

        1. JinkoSolar Holdings Co. Ltd

        2. First Solar Inc.

        3. Hanwha Q Cells Co. Ltd

        4. SMA Solar Technology AG

        5. Trina Solar Limited

    4. *List Not Exhaustive

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The India Solar Energy Market market is studied from 2019 - 2026.

The India Solar Energy Market is growing at a CAGR of >8% over the next 5 years.

Adani Group, EMMVEE SOLAR, JinkoSolar Holdings Co. Ltd, First Solar Inc., Azure Power Global Limited are the major companies operating in India Solar Energy Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!