India Solar Photovoltaic (PV) Market Outlook to 2035

The report titled “India Solar Photovoltaic (PV) Market Outlook to 2035 – By Installation Type, By Application, By Technology, By Project Size, and By Region” provides a comprehensive analysis of the solar photovoltaic industry in India. The report covers an overview and genesis of the market, overall market size in terms of value and installed capacity, detailed market segmentation; trends and developments, regulatory and policy landscape, buyer-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players in the India solar PV market. The report concludes with future market projections based on national renewable energy targets, grid expansion and modernization, industrial and commercial decarbonization, energy security considerations, regional demand drivers, cause-and-effect relationships, and case-based illustrations highlighting the major opportunities and cautions shaping the market through 2035.

India Solar Photovoltaic (PV) Market Overview and Size

The India solar photovoltaic market is valued at approximately ~USD ~ billion, representing cumulative and annual investments in grid-connected and off-grid solar PV systems, including utility-scale solar parks, rooftop installations, distributed generation projects, and captive solar plants. The market encompasses PV modules, inverters, mounting structures, balance-of-system components, engineering–procurement–construction (EPC) services, and long-term operations and maintenance (O&M) activities.

India’s solar PV market is anchored by the country’s long-term commitment to renewable energy expansion, rising electricity demand driven by urbanization and industrial growth, and the strategic need to reduce dependence on fossil fuel imports. Solar PV has emerged as the backbone of India’s renewable energy mix due to its scalability, declining levelized cost of electricity, relatively short project gestation period, and suitability across diverse geographic and climatic conditions.

Utility-scale solar installations account for the largest share of installed capacity, driven by central and state-level auctions, solar parks, and interstate transmission system (ISTS)-connected projects. Rooftop and distributed solar segments are expanding steadily, supported by commercial and industrial (C&I) consumers seeking energy cost optimization, power reliability, and sustainability compliance. Residential rooftop adoption remains smaller in absolute terms but is gaining momentum through subsidy programs, simplified net metering frameworks, and increasing consumer awareness.

Regionally, western and southern India represent the largest solar PV demand centers due to high solar irradiation, availability of large land parcels, proactive state policies, and relatively mature grid infrastructure. States such as Rajasthan, Gujarat, Karnataka, Tamil Nadu, and Andhra Pradesh have emerged as solar hubs, hosting large utility-scale capacities and manufacturing ecosystems. Northern and central regions are witnessing accelerated growth through hybrid projects, solar-plus-storage deployments, and distributed generation, while eastern and northeastern regions remain underpenetrated but offer long-term potential as grid connectivity and policy support improve.

What Factors are Leading to the Growth of the India Solar Photovoltaic (PV) Market:

Strong policy push and long-term renewable energy targets create sustained demand visibility: India’s solar PV market is fundamentally driven by ambitious national targets for renewable energy capacity addition, supported by central government schemes, state-level procurement programs, and long-term power purchase agreements (PPAs). Policy instruments such as competitive bidding, solar park development, production-linked incentives (PLI) for domestic manufacturing, and must-run status for renewable power provide demand visibility across the project lifecycle. This regulatory certainty encourages large-scale investments from developers, utilities, and financial institutions, reinforcing the structural growth trajectory of the solar PV market.

Declining technology costs and improving project economics accelerate adoption across segments: Continuous reductions in PV module prices, efficiency improvements in cell and module technologies, and cost optimization across EPC and O&M services have significantly improved the economics of solar power in India. Utility-scale solar tariffs have reached levels competitive with, and in some cases lower than, conventional thermal power. In the C&I segment, rooftop and captive solar installations offer predictable long-term energy costs, protection against grid tariff escalation, and faster payback periods. These economics make solar PV an increasingly attractive option across industrial, commercial, and institutional buyers.

Rising power demand, grid diversification needs, and decarbonization pressures strengthen market fundamentals: India’s electricity demand continues to grow due to industrialization, electrification of transport and cooking, data center expansion, and rising residential consumption. Solar PV plays a critical role in diversifying the generation mix, enhancing energy security, and reducing carbon intensity. Corporates facing environmental, social, and governance (ESG) commitments and global supply-chain decarbonization requirements are actively investing in on-site and off-site solar projects. At the system level, the integration of solar with energy storage, hybrid renewable projects, and grid modernization initiatives further expands the addressable market for solar PV solutions through 2035.

Which Industry Challenges Have Impacted the Growth of the India Solar Photovoltaic (PV) Market:

Policy uncertainty, tariff renegotiation risk, and payment delays impact investor confidence: While India’s solar PV market has benefited from strong policy intent, periodic uncertainties related to tariff renegotiations, changes in open access rules, and retrospective policy interventions at the state level have affected investor sentiment. Delays in payments from state distribution companies (DISCOMs), curtailment risk during periods of grid congestion, and evolving interpretations of power purchase agreements create cash flow uncertainty for developers. These factors can slow financial closures, increase the cost of capital, and reduce appetite for aggressive capacity expansion in certain states.

Land acquisition challenges and grid connectivity constraints create execution bottlenecks: Utility-scale solar projects in India are highly sensitive to land availability, land-use approvals, and transmission connectivity. Fragmented land ownership, conversion of agricultural land, local opposition, and delays in right-of-way approvals can extend project timelines and increase development risk. Additionally, mismatches between solar capacity addition and transmission infrastructure readiness—particularly in high-irradiation regions—can result in grid congestion, power evacuation delays, and forced curtailment, affecting project bankability and utilization levels.

Supply chain dependence and pricing volatility in modules and key components affect cost stability: Despite ongoing efforts to localize manufacturing, the Indian solar PV market remains partially dependent on imported modules, cells, and balance-of-system components. Global supply chain disruptions, fluctuations in polysilicon prices, changes in import duties, and currency volatility can impact project costs and bidding behavior. Sudden shifts in module pricing can compress developer margins, complicate bid planning, and create uncertainty during procurement cycles, particularly for projects with long execution timelines.

What are the Regulations and Initiatives which have Governed the Market:

National renewable energy targets, competitive bidding frameworks, and long-term PPAs shaping demand: India’s solar PV market is governed by national renewable energy targets and a structured competitive bidding framework led by central and state agencies. Long-term power purchase agreements with fixed tariffs provide revenue visibility and form the foundation of utility-scale project development. Centralized auction mechanisms, standardized bidding documents, and transparent tariff discovery processes have enabled rapid capacity addition while attracting domestic and international developers to the market.

Domestic manufacturing incentives, import duties, and localization policies influencing supply-side dynamics: Government initiatives aimed at strengthening domestic solar manufacturing—such as production-linked incentive schemes and phased import duty structures—have a direct impact on technology selection, supplier strategy, and project economics. Basic customs duties on imported modules and cells, along with approved list requirements, are intended to reduce import dependence and build local capacity. However, these measures also influence near-term project costs and procurement planning, requiring developers to balance compliance, availability, and pricing considerations.

Grid integration rules, open access regulations, and net metering policies guiding adoption across segments: Regulatory frameworks governing grid connectivity, open access, banking provisions, and net metering play a critical role in shaping rooftop and distributed solar adoption. For commercial and industrial consumers, open access charges, cross-subsidy surcharges, and state-specific implementation clarity directly affect project viability. Residential rooftop growth is influenced by subsidy structures, simplified approval processes, and net metering caps. Together, these regulatory elements determine the pace and scale of solar PV deployment across utility-scale, C&I, and residential segments in India.

India Solar Photovoltaic (PV) Market Segmentation

By Installation Type: Utility-scale solar dominates the Indian solar PV market. This dominance is driven by large central and state government tenders, solar park developments, and interstate transmission–connected projects that allow developers to deploy capacity at scale. Utility-scale projects benefit from competitive bidding, long-term PPAs, and economies of scale in EPC and procurement. While rooftop and distributed solar segments are expanding—particularly in the commercial and industrial (C&I) segment—the bulk of installed capacity continues to come from ground-mounted utility-scale plants due to their ability to deliver large volumes of power at low tariffs.

Utility-scale Solar PV (Ground-mounted)  ~65 %
Commercial & Industrial Rooftop / Captive Solar  ~20 %
Residential Rooftop Solar  ~10 %
Off-grid & Distributed Solar Applications  ~5 %

By Application: Power generation for grid supply remains the primary application. Solar PV in India is primarily deployed to meet grid-scale electricity demand through long-term power procurement by utilities and government agencies. The C&I segment represents a fast-growing application area, where solar is used for captive consumption, open access procurement, and sustainability-driven energy sourcing. Residential adoption remains smaller but is supported by subsidy schemes and simplified net metering policies, while off-grid applications continue to serve rural electrification, telecom towers, and remote infrastructure needs.

Grid-connected Power Generation (Utility & DISCOM Supply)  ~60 %
Commercial & Industrial Captive / Open Access  ~25 %
Residential Rooftop Consumption  ~10 %
Off-grid / Rural & Remote Applications  ~5 %

Competitive Landscape in India Solar Photovoltaic (PV) Market

The India solar PV market exhibits moderate-to-high competitive intensity, characterized by a mix of large domestic developers, vertically integrated power producers, EPC-focused players, and international energy companies with a long-term India presence. Market leadership is driven by access to low-cost capital, bidding discipline, execution capability, balance sheet strength, and the ability to manage policy, land, and grid-related risks. While large players dominate utility-scale projects and multi-gigawatt pipelines, regional EPC firms and specialized rooftop players remain competitive in C&I and distributed solar segments by offering customized solutions and faster execution.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

Adani Green Energy: As one of India’s largest renewable energy developers, Adani Green continues to scale its solar portfolio through large solar parks, hybrid renewable projects, and storage-linked capacities. Its competitive advantage lies in access to land, integrated infrastructure, and strong execution capability across utility-scale projects, positioning it well for long-term capacity expansion.

ReNew Energy Global: ReNew has built a diversified renewable portfolio with a strong focus on utility-scale solar and hybrid projects. The company emphasizes disciplined bidding, long-term PPAs, and operational efficiency, with increasing attention to corporate renewable procurement and decarbonization-driven demand from industrial clients.

Tata Power Solar: Tata Power Solar remains a leading player across EPC, rooftop solar, and module manufacturing. Its strong brand credibility, pan-India execution capability, and deep relationships with commercial, industrial, and residential customers reinforce its position in distributed and rooftop solar segments.

Azure Power: Azure Power has historically focused on utility-scale solar projects with long-term PPAs. The company’s portfolio strength lies in its experience across multiple state markets and its emphasis on operational performance and asset optimization in a tariff-competitive environment.

Sterling and Wilson Renewable Energy: This player continues to compete strongly as an EPC-focused company, particularly in large-scale solar projects in India and overseas markets. Its competitiveness is driven by engineering expertise, project management capability, and the ability to execute complex, time-bound utility-scale installations.

What Lies Ahead for India Solar Photovoltaic (PV) Market?

The India solar photovoltaic (PV) market is expected to expand strongly through 2035, supported by long-term renewable energy targets, rising electricity demand, and the strategic imperative to reduce dependence on fossil fuel imports. Growth momentum will be driven by sustained utility-scale capacity additions, increasing adoption of solar by commercial and industrial consumers, and gradual expansion of residential rooftop installations. As solar continues to deliver cost-competitive power with shorter project timelines compared to conventional generation, it will remain a central pillar of India’s energy transition and power infrastructure planning over the next decade.

Transition Toward Hybrid, Storage-Linked, and Firm Power Solar Configurations: The future of India’s solar PV market will see a shift from standalone solar projects toward hybrid configurations that combine solar with wind and energy storage. These systems are designed to deliver more stable and dispatchable power, addressing intermittency concerns and aligning better with grid demand patterns. Storage-linked solar projects, peak power tenders, and round-the-clock (RTC) renewable contracts will gain prominence, particularly for utility buyers and large corporate offtakers seeking reliability alongside sustainability.

Growing Emphasis on Commercial & Industrial (C&I) Solar Adoption and Corporate Decarbonization: C&I solar demand is expected to grow faster than the overall market as industries seek to manage rising grid tariffs, improve power reliability, and meet ESG and net-zero commitments. Captive solar plants, open access procurement, and group captive models will continue to expand, especially among manufacturing, data centers, logistics parks, and IT campuses. Through 2035, this segment will increasingly favor integrated solutions that combine solar, storage, and energy management systems.

Acceleration of Domestic Manufacturing and Supply Chain Localization: India’s push toward domestic manufacturing of solar cells and modules will reshape supply-side dynamics over the forecast period. Capacity additions under incentive-linked schemes are expected to improve supply security and reduce exposure to global price volatility. As domestic manufacturing matures, developers will increasingly balance cost competitiveness with compliance, traceability, and long-term supply assurance, strengthening the role of integrated players and strategic supplier partnerships.

Grid Modernization, Transmission Expansion, and Digital Integration Become Critical Enablers: The pace of solar PV growth will be closely linked to investments in transmission infrastructure, grid balancing mechanisms, and digital monitoring systems. Expansion of interstate transmission corridors, renewable energy management centers, and forecasting tools will be essential to support high renewable penetration levels. Developers and utilities will increasingly rely on advanced grid integration, real-time monitoring, and predictive maintenance to optimize asset performance and minimize curtailment risks.

India Solar Photovoltaic (PV) Market Segmentation

By Installation Type

• Utility-scale Solar PV (Ground-mounted)
• Commercial & Industrial Rooftop / Captive Solar
• Residential Rooftop Solar
• Off-grid and Distributed Solar Systems

By Technology

• Monocrystalline Silicon Modules
• Polycrystalline Silicon Modules
• Thin-Film Solar Technologies
• Bifacial and High-Efficiency Module Variants

By Application

• Grid-connected Power Generation
• Commercial & Industrial Captive Consumption
• Residential Electricity Supply
• Rural Electrification and Remote Applications

By Project Size

• Small-scale Projects (<1 MW)
• Medium-scale Projects (1–50 MW)
• Large Utility-scale Projects (>50 MW)

By Region

• Western India
• Southern India
• Northern India
• Central India
• Eastern & North-Eastern India

Players Mentioned in the Report:

• Adani Green Energy
• ReNew Energy Global
• Tata Power Solar
• NTPC Renewable Energy
• Azure Power
• ACME Solar
• Sterling and Wilson Renewable Energy
• Vikram Solar
• Domestic EPC contractors, solar developers, module manufacturers, and regional rooftop installers

Key Target Audience

• Solar PV developers and independent power producers
• EPC contractors and balance-of-system suppliers
• Commercial and industrial power consumers
• Residential solar solution providers and aggregators
• Module, inverter, and energy storage manufacturers
• Utilities and power distribution companies
• Financial institutions, infrastructure funds, and private equity investors
• Government agencies and renewable energy policymakers

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2035