AI is Redefining the Solar Power Market in India, USD 792.5 Billion Growth Expected (2024-2028) Due to Rising Renewable Energy Investments – Technavio

NEW YORK, Sept. 13, 2024 /PRNewswire/ — Report with market evolution powered by AI- The global solar power market in India  size is estimated to grow by USD 792.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  52.07%  during the forecast period. Increasing investments in renewable energy is driving market growth, with a trend towards declining costs of solar energy. However, increase in availability of other energy sources  poses a challenge. Key market players include ABB Ltd., ACME Solar, Adani Group, Azure Power Ltd., Canadian Solar Inc., GCL System Integration Technology Co. Ltd., Huawei Technologies Co. Ltd., JA Solar Technology Co. Ltd., Larsen and Toubro Ltd., Mahindra and Mahindra Ltd., MVV Energie AG, Reliance Industries Ltd., ReNew Energy Plc, Risen Energy Co. Ltd., SMA Solar Technology AG, Sterling and Wilson Renewable Energy Ltd, Sungrow Power Supply Co. Ltd., Sunsure Energy, and Suzlon Energy Ltd..

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Key Market Trends Fueling Growth

The solar power market in India has experienced significant growth due to the remarkable decrease in solar energy costs. In 2010, solar electricity cost around USD 268 per MWh, but by 2020, it had dropped to approximately USD 38 per MWh, representing an impressive 85% reduction. This cost reduction can be attributed to technological advancements, increased manufacturing capacity, economies of scale, and competitive auctions. India’s solar capacity has grown from 17.8 GW in 2018 to over 40 GW by 2021. The cost competitiveness of solar power with fossil fuels is strengthening investor confidence and aiding India’s transition to renewable energy sources. Additionally, importing solar panels from countries like China at affordable prices is increasing the demand for solar power systems in India, further fueling market growth. 

The solar power market is witnessing a significant growth with an increasing focus on renewable energy and reliance on low-carbon sources. Manufacturing facilities for solar modules and solar panels are expanding to meet the growing demand for solar power technology. Reliance Industries, among others, is investing heavily in this sector. India’s Solar Park Scheme and Wind-solar hybrid policy are attracting foreign investment. Solar PV, or photovoltaic, is becoming a popular choice for power supply, with solar systems generating electricity from solar irradiance. Solar permits are streamlined to encourage adoption. Batteries and fuel cells are used to store excess energy, reducing carbon emissions and CO2. The defense sector is also adopting solar power, with GW-scale projects underway. The solar industry is also exploring green hydrogen ecosystems, using electrolyzers, as a greener way to produce hydrogen. The shift towards renewable energy is a step towards a sustainable future. 

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Market Challenges

•         The global power generation market is dominated by fossil fuels, which accounted for 76.1% of the total power generated in 2019, according to the International Energy Agency. Renewable energy sources, including solar, wind, and hydropower, accounted for 23.1% of the total power generation. However, the preference for non-renewable energy sources is high due to their abundant availability and lower cost of production. In India, coal remains the primary energy source, accounting for 45%-50% of the country’s energy production in 2022. Renewable energy sources, excluding large hydro, contribute 30.08% of India’s total installed power capacity, with wind energy accounting for nearly twice the installed capacity of solar power. The increasing adoption of wind power and the presence of other energy sources pose a significant challenge to the growth of the solar power market in India. According to the Global Wind Energy Council, the global wind power capacity increased from 539 GW in 2017 to over 830 GW by 2022. This growth, along with the availability and affordability of other energy sources, is expected to impede the growth of the solar power market in India during the forecast period.

•         The solar power market is witnessing significant growth as businesses shift towards low-carbon sources of electricity. However, challenges persist. Manufacturing facilities for solar modules and solar panels face hurdles due to power supply issues. Reliance Industries, a key player, aims to increase India’s renewable energy capacity. Solar irradiance varies, impacting installed capacity. Solar permits and solar PV policies need streamlining. Renewable energy integration with wind power through hybrid policies is crucial. Artificial intelligence and batteries help manage intermittency. Carbon emissions from fossil fuels must decrease. India’s Solar Park Scheme and Defense Scheme encourage foreign investment. Gigawatts (GW) of solar power and green hydrogen ecosystems offer a greener way forward. Solar PV technology, electrolyzers, and fuel cells are essential components. Let’s work together to overcome these challenges and build a sustainable future.

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Segment Overview 

This solar power market in India report extensively covers market segmentation by

1. Application 

• 1.1 Grid-connected
• 1.2 Off-grid

End-user 

• 2.1 Utility
• 2.2 Rooftop

Geography 

1.1 Grid-connected-  The solar power market is growing rapidly, with businesses and homeowners increasingly turning to renewable energy sources. In 2020, the global solar power market size was valued at USD120.7 billion and is projected to expand at a compound annual growth rate (CAGR) of 14.5% from 2021 to 2028. This growth is driven by factors such as government incentives, falling solar panel prices, and increasing environmental concerns. Companies in the solar industry are investing in research and development to improve efficiency and reduce costs, making solar power a cost-effective and sustainable energy solution for businesses and individuals alike.

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Research Analysis

Solar power, derived from Solar Photovolvoltaic (PV) technology, is a renewable and low-carbon source of electricity. The global installed capacity of solar power has been rapidly growing, with over 800 GW (gigawatts) installed as of 2021. Solar power technology converts sunlight into electricity using Solar PV systems, making it an increasingly popular choice for a greener way to generate electricity. Solar energy is a viable alternative to fossil fuels, which contribute significantly to carbon emissions. Artificial intelligence is being integrated into solar power systems to optimize energy production and reduce waste. Solar permits and the installation of Solar panels require careful planning and adherence to regulations. Tax breaks and incentives are often available to encourage the adoption of solar power and other renewable energy sources. Wind power is another renewable energy source that complements solar power in providing a diverse mix of clean energy options.

Market Research Overview

Solar power is an essential part of the global shift towards renewable, low-carbon sources of electricity. Solar energy is derived from the sun’s solar irradiance, which is converted into electricity using solar photovoltaic (PV) technology. Solar power is becoming increasingly competitive with fossil fuels, offering a greener way to meet power supply demands. The solar power market is expanding rapidly, with new manufacturing facilities being set up and installed capacity increasing at a record pace. Gigawatts (GW) of solar PV capacity are being added every year, and the solar park scheme is attracting significant foreign investment. Solar systems are being integrated with batteries, electrolyzers, and fuel cells to create a green hydrogen ecosystem. The defense scheme is also recognizing the strategic importance of solar power and is investing in it. Solar permits are streamlined to encourage the adoption of solar power, and wind-solar hybrid policies are being adopted to optimize the use of renewable energy sources. Artificial intelligence is being used to optimize solar power generation and distribution, making it a more efficient and reliable source of electricity. The solar power technology market is expected to continue growing, offering exciting opportunities for innovation and growth.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Application
• Grid-connected
• Off-grid
• End-user
• Utility
• Rooftop
• Geography

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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