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MARKET OVERVIEW
The India Solar Energy Market reached a market size of USD 30,032.78 Million in 2025. The market is projected to surge to USD 5,38,913.68 Million by 2034, registering a robust CAGR of 37.82% between 2026 and 2034. Growth is driven by government policies, declining technology costs, and increasing private investments sector. The report offers a comprehensive analysis of the industry, including India solar energy industry analysis , share, growth, trends, and regional insights.
STUDY ASSUMPTION YEARS
MARKET TRENDS
The India Solar Energy Market is currently undergoing a sophisticated technological evolution, characterized by a rapid migration from standard Polycrystalline modules to high-efficiency Mono PERC and Bifacial technologies. Developers are increasingly favoring bifacial modules for utility-scale projects because they capture reflected sunlight from the rear side, significantly boosting generation yield per acre without a proportional increase in land usage. Additionally, the sector is witnessing a "floatovoltaic" boom, with massive floating solar parks emerging on reservoirs to bypass land acquisition hurdles and reduce water evaporation.
Moreover, the market is shifting towards decentralized energy independence; the residential and commercial segments are aggressively adopting hybrid inverters coupled with Lithium-ion battery storage. This trend is driven by the desire for 24/7 power reliability and the capability to manage peak loads intelligently. In addition, Artificial Intelligence (AI) is becoming integral to Operations and Maintenance (O&M), where drone-based thermal imaging and predictive analytics are used to detect micro-cracks and soiling losses in real-time, ensuring that asset performance remains optimal throughout the plant's lifecycle.
MARKET GROWTH FACTORS
The robust expansion of the India Solar Energy Market is primarily fueled by aggressive government interventions aimed at achieving energy self-reliance and "Net Zero" emissions. The flagship PM-KUSUM scheme has been a massive catalyst, empowering farmers to install standalone solar pumps and grid-connected plants on barren lands, thereby reducing the agricultural sector's dependency on diesel and subsidized grid electricity. Furthermore, the Production Linked Incentive (PLI) scheme for High-Efficiency Solar PV Modules is reshaping the supply chain, incentivizing domestic manufacturers to build gigawatt-scale vertically integrated factories that produce everything from polysilicon to finished modules.
In addition, the rollout of the PM Surya Ghar: Muft Bijli Yojana has democratized access to clean energy, offering substantial subsidies to millions of households for rooftop installations, effectively turning consumers into "prosumers" who can sell excess power back to the grid. Moreover, the waiver of Inter-State Transmission System (ISTS) charges for solar projects has stimulated cross-border power trading, allowing renewable-rich states like Rajasthan and Gujarat to supply cost-effective green power to industrial hubs across the nation, ensuring sustained demand visibility for developers.
For detailed insights, visit the India Solar Energy Market report page: https://www.imarcgroup.com/india-solar-energy-market
Market segmentation
Deployment Insights:
The report does not explicitly specify the dominant region or regional market share and CAGR statistics. It provides a comprehensive analysis covering North India, South India, East India, and West India without precise comparative data.
RECENT DEVELOPMENTS & NEWS
In September 2025, Oil India Limited partnered with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) to develop a 1.2 GW renewable energy project in Rajasthan, consisting of 1,000 MW solar and 200 MW wind power. This initiative supports India's green transition and aims to supply clean energy to distribution companies and commercial clients, significantly expanding renewable capacity.
In June 2025, the Ministry of New and Renewable Energy launched the Innovative Projects Start-Up Challenge to promote rooftop solar and distributed renewable innovations in India. The challenge offers ₹2.3 crore in prizes and provides incubation, pilot opportunities, and mentorship for winners.
KEY PLAYERS
ABOUT US
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
CONTACT US
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA,
Email: sales@imarcgroup.com,
Tel No: (D) +91 120 433 0800,
United States: +1-201971-6302
The India Solar Energy Market reached a market size of USD 30,032.78 Million in 2025. The market is projected to surge to USD 5,38,913.68 Million by 2034, registering a robust CAGR of 37.82% between 2026 and 2034. Growth is driven by government policies, declining technology costs, and increasing private investments sector. The report offers a comprehensive analysis of the industry, including India solar energy industry analysis , share, growth, trends, and regional insights.
STUDY ASSUMPTION YEARS
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
- Current Market Size: USD 30,032.78 Million in 2025
- CAGR: 37.82%
- Forecast Period: 2026-2034
- Robust government policy support provides stability and incentives that accelerate project deployment.
- Falling technology costs and improved efficiencies are enhancing the competitiveness of solar energy.
- Rising private sector participation is fueling investment and capacity growth.
- Regulatory frameworks like renewable purchase obligations (RPOs) and net metering promote wider adoption.
- Public-private partnership frameworks minimize project risks and encourage collaboration.
MARKET TRENDS
The India Solar Energy Market is currently undergoing a sophisticated technological evolution, characterized by a rapid migration from standard Polycrystalline modules to high-efficiency Mono PERC and Bifacial technologies. Developers are increasingly favoring bifacial modules for utility-scale projects because they capture reflected sunlight from the rear side, significantly boosting generation yield per acre without a proportional increase in land usage. Additionally, the sector is witnessing a "floatovoltaic" boom, with massive floating solar parks emerging on reservoirs to bypass land acquisition hurdles and reduce water evaporation.
Moreover, the market is shifting towards decentralized energy independence; the residential and commercial segments are aggressively adopting hybrid inverters coupled with Lithium-ion battery storage. This trend is driven by the desire for 24/7 power reliability and the capability to manage peak loads intelligently. In addition, Artificial Intelligence (AI) is becoming integral to Operations and Maintenance (O&M), where drone-based thermal imaging and predictive analytics are used to detect micro-cracks and soiling losses in real-time, ensuring that asset performance remains optimal throughout the plant's lifecycle.
MARKET GROWTH FACTORS
The robust expansion of the India Solar Energy Market is primarily fueled by aggressive government interventions aimed at achieving energy self-reliance and "Net Zero" emissions. The flagship PM-KUSUM scheme has been a massive catalyst, empowering farmers to install standalone solar pumps and grid-connected plants on barren lands, thereby reducing the agricultural sector's dependency on diesel and subsidized grid electricity. Furthermore, the Production Linked Incentive (PLI) scheme for High-Efficiency Solar PV Modules is reshaping the supply chain, incentivizing domestic manufacturers to build gigawatt-scale vertically integrated factories that produce everything from polysilicon to finished modules.
In addition, the rollout of the PM Surya Ghar: Muft Bijli Yojana has democratized access to clean energy, offering substantial subsidies to millions of households for rooftop installations, effectively turning consumers into "prosumers" who can sell excess power back to the grid. Moreover, the waiver of Inter-State Transmission System (ISTS) charges for solar projects has stimulated cross-border power trading, allowing renewable-rich states like Rajasthan and Gujarat to supply cost-effective green power to industrial hubs across the nation, ensuring sustained demand visibility for developers.
For detailed insights, visit the India Solar Energy Market report page: https://www.imarcgroup.com/india-solar-energy-market
Market segmentation
Deployment Insights:
- Rooftop: Encompasses solar photovoltaic installations on building rooftops, enabling localized energy generation mostly for residential and commercial users.
- Ground-mounted: Includes utility-scale solar power plants set up on land surfaces, designed primarily for large-scale electricity generation.
- Residential: Solar energy systems deployed for individual homes and housing complexes providing clean power for domestic consumption.
- Commercial and Industrial: Solar installations serving commercial enterprises and industrial facilities to meet significant energy demands economically.
- Utility-scale: Large-scale solar power generation projects feeding electricity directly into the transmission grid for widespread distribution.
- North India: Geographic focus on northern states with potential for significant solar energy generation growth.
- South India: Covers southern states with established solar infrastructure and expansion opportunities.
- East India: Encompasses eastern states with emerging solar market activities.
- West India: Includes western regions with developing solar energy projects and investments.
The report does not explicitly specify the dominant region or regional market share and CAGR statistics. It provides a comprehensive analysis covering North India, South India, East India, and West India without precise comparative data.
RECENT DEVELOPMENTS & NEWS
In September 2025, Oil India Limited partnered with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) to develop a 1.2 GW renewable energy project in Rajasthan, consisting of 1,000 MW solar and 200 MW wind power. This initiative supports India's green transition and aims to supply clean energy to distribution companies and commercial clients, significantly expanding renewable capacity.
In June 2025, the Ministry of New and Renewable Energy launched the Innovative Projects Start-Up Challenge to promote rooftop solar and distributed renewable innovations in India. The challenge offers ₹2.3 crore in prizes and provides incubation, pilot opportunities, and mentorship for winners.
KEY PLAYERS
- Oil India Limited
- Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL)
ABOUT US
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
CONTACT US
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA,
Email: sales@imarcgroup.com,
Tel No: (D) +91 120 433 0800,
United States: +1-201971-6302