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Strong policy support, record installations, and rapid rooftop solar growth position India as a global leader in clean energy transition.
India’s solar energy market, valued at $8 billion in 2025, is projected to reach $14 billion by 2031, growing at a CAGR of 10.51%. Solar power has become a cornerstone of the country’s sustainability agenda, driven by ambitious government targets, technological advancements, and increasing investor confidence.
The nation’s installed solar capacity surpassed 100 GW in early 2025, with record new installations in 2024 highlighting robust momentum, especially in utility-scale and rooftop segments. Solar’s scalability, declining costs, and ability to reduce fossil fuel dependence are accelerating adoption across urban and rural India.
Key Market Drivers
Proactive government initiatives, such as the National Solar Mission and PM-KUSUM, have set ambitious targets—500 GW of non-fossil fuel energy by 2030, with solar as a major contributor. Financial incentives, streamlined project financing from SECI and IREDA, and Renewable Purchase Obligations (RPOs) are spurring rapid deployment. In 2024 alone, India added 24.5 GW of solar capacity, including 18.5 GW from utility-scale projects and 4.6 GW from rooftop installations.
Key Market Challenges
Land acquisition remains a significant hurdle, especially for large-scale projects. Securing suitable land near transmission infrastructure is complicated by population density, competing land use, and legal complexities. Grid limitations and environmental clearances can delay projects and impact financial viability, despite initiatives like green energy corridors.
Key Market Trends
Rooftop and decentralized solar are expanding rapidly, supported by government subsidies, net metering, and rising electricity tariffs. Both residential and commercial users are turning to solar to reduce costs and reliance on grid power. Decentralized solar is emerging as a vital complement to utility-scale projects, particularly where land and infrastructure are constrained.
As infrastructure and regulatory frameworks continue to improve, India’s solar market is poised for sustained, robust growth—cementing its role as a global leader in renewable energy
As per Report by: Research & Markets
