India Solar Energy Market is set to grow, driven by supportive government policies and falling solar technology costs during the forecast period.

According to the TechSci Research report titled “India Solar Energy Market – By Region, Competition, Forecast and Opportunities, 2021-2031F,” the India Solar Energy Market was valued at USD 8 billion in 2025 and is projected to reach USD 14 billion by 2031, growing at a compound annual growth rate (CAGR) of 10.51% during the forecast period.

India’s solar energy sector is witnessing substantial momentum, driven by the twin imperatives of combating climate change and transitioning to a cleaner, more sustainable energy mix. As one of the top carbon-emitting nations globally—due primarily to its dependence on coal-based electricity—India faces mounting environmental and public health challenges. The country is particularly vulnerable to the effects of climate change, such as erratic rainfall, heatwaves, floods, and droughts, all of which have a direct impact on agriculture, water resources, and overall societal wellbeing.

In response, India has taken decisive steps on both domestic and international fronts. Its Nationally Determined Contributions (NDCs) under the Paris Agreement reflect a strong commitment to reducing carbon intensity and increasing the share of non-fossil fuel sources in its energy portfolio. Solar energy has emerged as a cornerstone of this strategy due to its scalability, declining costs, and environmentally friendly nature.

Rising Environmental Awareness and Corporate Sustainability

In recent years, growing awareness among citizens, investors, and businesses has catalyzed the demand for renewable energy sources. Environmental consciousness is no longer limited to government agendas—it now shapes business strategies and consumer behavior. Many Indian and multinational corporations operating in the country have adopted net-zero targets, integrating renewable energy, particularly solar, into their operations as part of broader Environmental, Social, and Governance (ESG) commitments.

This shift is supported by the increasing economic viability of solar energy. As technology evolves and economies of scale improve, the cost of solar photovoltaic (PV) systems continues to decline, making solar power one of the most affordable energy sources. Additionally, transitioning to solar helps address localized environmental issues, such as the severe air pollution in cities like Delhi, by reducing dependence on coal-fired power plants.

India’s leadership in promoting solar energy is also reflected in its active role in global platforms such as the International Solar Alliance (ISA). Headquartered in Gurugram, ISA advocates for widespread adoption of solar technologies, especially among sun-rich nations in the Global South. Through this alliance, India not only promotes clean energy but also strengthens international cooperation and innovation in the renewable energy sector.

Electricity Generation: Dominant End-Use Segment

Among various applications, electricity generation remains the dominant end-use segment in India’s solar energy market. The rapidly rising demand for power—driven by industrial expansion, urbanization, and initiatives to electrify rural areas—necessitates a reliable, scalable, and clean source of energy. Solar power, particularly via PV technology, offers an ideal solution.

Several factors underscore the primacy of electricity generation in the solar segment. Government policies and flagship programs, such as the Jawaharlal Nehru National Solar Mission, have focused on deploying solar capacity at both utility and rooftop scales. These initiatives aim to reduce dependence on fossil fuels, cut carbon emissions, and enhance national energy security. The government’s ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030 further emphasizes the importance of solar power.

Solar electricity generation integrates seamlessly with the national grid, providing a decentralized, low-emission power supply to both urban and rural populations. Distributed solar systems, especially rooftop solar installations, empower residential and commercial consumers to generate their own electricity, reduce electricity bills, and contribute to grid stability. The increasing affordability and efficiency of solar PV modules have further accelerated adoption across sectors.

Technological advancements, particularly in battery storage and smart grid systems, are addressing intermittency issues that previously limited the reliability of solar power. These innovations ensure more consistent power delivery, facilitating round-the-clock electricity supply and reinforcing electricity generation as the leading application in India’s solar energy landscape.

Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on " India Solar Energy Market.”
https://www.techsciresearch.com/report/india-solar-energy-market/15652.html

North India: Fastest-Growing Regional Market

Geographically, North India has emerged as the fastest-growing region in the Indian solar energy market. This growth is propelled by a mix of favorable climatic conditions, proactive policy frameworks, strong demand drivers, and robust infrastructure development.

States such as Rajasthan, Punjab, Haryana, and Uttar Pradesh receive high solar irradiation, making them ideal for both grid-connected solar parks and decentralized solar applications. Rajasthan, in particular, ranks among the top solar resource-rich regions globally, attracting significant private and public investment in solar projects.

Policy support from both state and central governments plays a pivotal role. Measures such as competitive bidding for solar projects, streamlined land acquisition, incentives for rooftop solar systems, and favorable net metering regulations have created an enabling ecosystem for solar expansion.

North India’s burgeoning industrial base and growing urban population further increase electricity demand, especially among commercial and industrial (C&I) consumers seeking to reduce operational costs and carbon footprints. Solar energy provides an attractive proposition in this context, delivering cost savings and enhancing energy independence.

Additionally, the region benefits from well-developed transmission infrastructure and ongoing investments in green energy corridors, which facilitate the seamless evacuation and distribution of solar power. This helps mitigate grid congestion and curtailment risks—common obstacles in other parts of the country.

The proximity of solar-rich areas to major urban centers such as Delhi and the National Capital Region (NCR) is another advantage. These high-demand zones offer a ready market for clean energy, further reinforcing North India’s prominence in the national solar growth narrative.

Conclusion

India's solar energy market stands at a crucial juncture, supported by a combination of environmental imperatives, economic feasibility, and progressive policy initiatives. With electricity generation as its leading application and North India as its fastest-growing region, the market is poised for sustained growth through 2031. As technology improves, costs decline, and environmental awareness deepens, solar energy is set to play an increasingly vital role in powering India’s transition to a green economy.

Major companies operating in the India Solar Energy Market are:

Adani Green Energy Limited
Tata Power Solar Systems Limited
ReNew Power Ventures Pvt. Ltd.
Azure Power Global Limited
ACME Solar Holdings Limited
Hero Future Energies Pvt. Ltd.
Greenko Group
Waaree Energies Ltd.

Download Free Sample Report
https://www.techsciresearch.com/sample-report.aspx?cid=15652

Customers can also request 10% free customization on this report.

“India’s solar energy market presents a significant opportunity, driven by the country’s ambitious renewable energy targets, rising electricity demand, and supportive government policies. With a target of achieving 500 GW of non-fossil fuel capacity by 2030—of which solar is expected to contribute a major share—the sector offers vast potential for investment and innovation. Rapidly declining technology costs, increased adoption across residential, commercial, and industrial segments, and the push for domestic manufacturing further enhance market attractiveness.

Additionally, growing corporate sustainability commitments and advancements in storage and smart grid solutions position solar as a cornerstone of India’s energy transition strategy.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm. 

“India Solar Energy Market, By Technology (Solar Photovoltaic, Concentrated Solar Power), By Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, Others), By Application (Residential, Commercial, Industrial), By End Use (Electricity Generation, Lighting, Heating, Charging) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Solar Energy Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Solar Energy Market.

Contact

TechSci Research LLC

420 Lexington Avenue,

Suite 300, New York,

United States- 10170

Tel: +13322586602

Email: sales@techsciresearch.com

Website: www.techsciresearch.com