The India Solar Energy Market Report is Segmented by Technology (Solar Photovoltaic and Concentrated Solar Power), Grid Type (On-Grid and Off-Grid), and End-User (Utility-Scale, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

The India solar photovoltaic (PV) market size reached 18.11 Gigawatt in 2024. The market is expected to grow at a CAGR of 13.10% during the forecast period of 2025-2034 to reach 62.02 Gigawatt by 2034. Rising corporate renewable procurement and ESG mandates are accelerating rooftop solar adoption, enabling businesses to reduce carbon footprints, achieve sustainability goals, and integrate decentralized solar generation across industrial and commercial facilities.

The market is rapidly transforming the nation’s energy landscape, largely driven by strong government incentives and progressive renewable targets. By April 2025, India’s installed solar PV capacity surpassed 107.9 GW, representing over 61% of the renewable energy capacity. Programs such as the Production-Linked Incentive (PLI) scheme, PM-KUSUM, and state-level solar parks have accelerated large-scale deployment while boosting domestic manufacturing. Net metering initiatives and rooftop solar subsidies are encouraging households and businesses to adopt solar solutions, lowering electricity costs, and promoting energy independence. The government’s target of 500 GW of non-fossil fuel capacity by 2030 remains a central catalyst for India solar photovoltaic (PV) market growth.

Technological advancements are also playing a crucial role in market expansion. High-efficiency modules, including monocrystalline, TOPCon, and HJT technologies, are increasingly deployed, with monocrystalline modules accounting for 67.5% of production capacity. Companies like Solex and Waaree Energies are driving innovation through high-efficiency modules, improving output while reducing project costs. By integrating these technologies into rooftop and utility-scale projects, the country is enhancing overall system efficiency and reducing the levelized cost of electricity, further accelerating demand in the India solar photovoltaic (PV) market.

India Solar Energy Market size was valued at USD 10.3 Billion in 2024 and is projected to reach USD 50.4 Billion by 2031, growing at a CAGR of 21.9% during the forecast period 2024-2031.

India Solar Energy Market Drivers

Government Policies and Initiatives: The Indian government has implemented ambitious policies to promote solar energy adoption, including the National Solar Mission under the National Action Plan on Climate Change (NAPCC). This initiative aims to achieve 280 GW of solar capacity by 2030. Additionally, financial incentives such as subsidies, tax exemptions, and viability gap funding (VGF) have been provided to encourage investments in solar projects. State-level policies further complement these efforts, tailoring schemes to regional energy needs.

Declining Cost of Solar Technology: The cost of solar photovoltaic (PV) modules has dropped significantly in recent years, making solar energy increasingly affordable. India benefits from large-scale production and imports of solar panels, driving down prices. Technological advancements in solar efficiency, energy storage, and manufacturing have further reduced costs, enhancing the economic viability of solar installations for residential, commercial, and utility-scale projects.

Rising Energy Demand: India's growing population, rapid urbanization, and expanding industrial base have led to a surge in energy demand. Solar energy offers a sustainable solution to bridge the energy gap, particularly in rural areas where conventional grid electricity is either unreliable or unavailable. Solar microgrids and rooftop systems are increasingly deployed to meet localized energy requirements.

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India Solar Power Market Size 2025-2029

The india solar power market size is valued to increase by USD 754 billion, at a CAGR of 42.4% from 2024 to 2029. Increasing investments in renewable energy will drive the india solar power market.

Major Market Trends & Insights

By Application - Grid-connected segment was valued at USD 44.10 billion in 2022
By End-user - Utility segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 1.00 billion
Market Future Opportunities: USD 754.00 billion
CAGR from 2024 to 2029 : 42.4%

Market Summary

Solar power, a clean and renewable energy source, has emerged as a significant player in India's energy market. Driven by government initiatives, such as the National Solar Mission, and falling technology costs, solar power capacity has experienced exponential growth. The Indian solar market is expected to reach 60 GW by 2022, according to estimates from various industry experts. Several factors have contributed to this expansion. The declining cost of solar panels and solar energy, coupled with increasing energy demand, have made solar power a financially viable alternative to traditional energy sources. Additionally, advancements in energy storage technology have addressed the intermittency challenges associated with solar power, further boosting its appeal. However, the market faces challenges as well. These include regulatory hurdles, such as inconsistent policies and complex bureaucratic procedures, which can hinder project implementation. Moreover, the availability of other energy sources, such as coal and natural gas, can impact the competitiveness of solar power. Despite these challenges, the future of solar power in India looks promising. The Indian government's continued focus on renewable energy and international collaborations can help address regulatory issues and drive innovation. Furthermore, the growing demand for sustainable energy solutions and advancements in technology are expected to further fuel the growth of the solar power market. In conclusion, the market is undergoing a transformative period, driven by government initiatives, declining costs, and increasing demand. While challenges persist, the future looks bright for this clean and renewable energy source.

What will be the Size of the India Solar Power Market during the forecast period?

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How is the Solar Power in India Market Segmented and what are the key trends of market segmentation?

The solar power in india industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ApplicationGrid-connectedOff-gridEnd-userUtilityRooftopTechnologySolar Photovoltaic (PV)Concentrated Solar Power (CSP)ComponentSolar PanelsInvertersBatteriesMounting SystemsGeographyAPACIndia

By Application Insights

The grid-connected segment is estimated to witness significant growth during the forecast period.

Amidst the global shift towards renewable energy sources, the Indian solar power market is experiencing robust growth. Capacity factor analysis reveals that grid-tied inverters, which supply solar energy directly to the grid without energy storage, account for a significant portion of this expansion. Solar power forecasting and solar energy storage solutions, including solar farm development and energy yield optimization, are also crucial components of this evolving landscape. Despite challenges such as grid integration and the scarcity of land for solar panel installations, the market is propelled forward by the depletion of fossil fuels, declining solar energy costs, and favorable renewable energy policies. For instance, the National Solar Mission has been instrumental in expanding energy access and promoting distributed generation systems, including rooftop solar installations. The solar resource assessment, photovoltaic cell efficiency, and solar radiation data are essential factors in optimizing energy infrastructure development. The solar industry is witnessing advancements in PV module testing, solar panel degradation analysis, and solar thermal technology. String inverters and power electronic converters are crucial components in the solar value chain. Moreover, energy efficiency measures, microgrid stability, and off-grid solar solutions are gaining traction as the market continues to evolve. The solar energy potential in India is substantial, with an estimated 300-350 GW of solar power capacity by 2030. This growth is expected to significantly contribute to the country's energy infrastructure development and reduce reliance on fossil fuels.

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The Grid-connected segment was valued at USD

India Solar PV Panels Market is expected to grow during 2025-2031

The size of the India Solar Energy Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 19.80% during the forecast period. Recent developments include: December 2022: The Government of India, Solar Energy Corporation of India Limited (SECI), and the World Bank signed agreements for a USD 150 million International Bank for Reconstruction and Development (IBRD) loan, a USD 28 million Clean Technology Fund (CTF) loan, and a USD 22 million CTF grant to assist India in increasing its power generation capacity through cleaner and renewable energy sources. The agreement reaffirmed India's goal of reaching 500 gigatons (GW) of renewable energy by 2030., September 2022: Amazon India announced three solar farm projects in Rajasthan with a total combined clean energy capacity of 420 megawatts (MW). The company's set of utility-scale renewable energy projects in India included a 210 MW project to be developed by ReNew Power, a 100 MW project by Amp Energy India, and a 110 MW project to be developed by Brookfield Renewable., January 2022: SJVN (Satluj Jal Vidyut Nigam Ltd) was awarded a 125-megawatt solar project in Uttar Pradesh following a bidding procedure conducted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The project included a 75 MW grid-connected solar project in Jalaun and a 50 MW solar project in the Kanpur and Dehat districts.. Key drivers for this market are: 4., Supportive Government Policies for Developing Solar Energy4.; Declining Cost of Solar Power Technology. Potential restraints include: 4., Unpredictability in the Continuity of Power Supply. Notable trends are: Solar PV Segment is Expected to Dominate the Market.

India Solar PV Panels Market is projected to grow around USD 322.4 billion by 2031, at a CAGR of 12.6% during the forecast period.

According to Cognitive Market Research, the global Solar Energy market size was USD 95451.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.50% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 38180.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 28635.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 21953.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 4772.5 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 1909.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
The Photovoltaic Systems Technology held the highest Solar Energy market revenue share in 2024.

Market Dynamics of Soloar Energy Market

Key Drivers of Soloar Energy Market

Increase in energy demand to Increase the Demand Globally: The growth of the global solar energy market is primarily driven by the increasing energy demand due to a surge in population. As the global population continues to rise, especially in developing countries, the energy demand grows proportionally. Urbanization is also accelerating, with more people moving to cities, leading to greater energy needs across residential, commercial, and industrial sectors. This rising energy demand is coupled with a growing emphasis on sustainable solutions due to environmental concerns.

Countries Aiming to Achieve Green Energy Targets to Propel Market Growth: A global energy transition is urgently required to limit the increase in average global surface temperature to below 2°C. Consequently, the installation of renewable energy sources is expected to grow significantly in the coming years, driving market expansion. The shift from fossil fuels to low-carbon solutions will be crucial, as energy-related carbon dioxide emissions account for two-thirds of all greenhouse gases. Government initiatives and new energy targets aimed at promoting sustainable energy have positively influenced market growth.

Key Restraint of Soloar Energy Market

High Investment and Lack of Infrastructure to Limit the Sales: The overall cost of solar PV systems is higher than that of traditional solar panels, which may limit their adoption in residential buildings with comparatively lower energy needs. For instance, installing 15 ground-mounted solar panels with a capacity of 300 watts each would cost approximately USD 14,625, with an additional USD 500 per panel for the mounting structure. This higher initial cost can lead to reduced utilization of solar power generation systems. Additionally, inadequate infrastructure further restricts investments in the market.

Trends in Soloar Energy Market

Rapid Adoption of Floating Solar (Floatovoltaics): With limited land availability and rising energy demand, floating solar farms are gaining traction—especially in countries like China, India, and Japan. These systems are installed on lakes, reservoirs, and irrigation ponds, reducing land use while benefiting from natural cooling that boosts efficiency. They also help diminish water evaporation and algae growth, offering both energy and environmental advantages. As deployment costs decline and performance improves, floating solar is emerging as a fast-growing segment of utility-scale solar energy.

Integration of Solar + Storage and Energy-as-a-Service Models: The solar sector is shifting toward integrated solutions that pair photovoltaic systems with battery storage and smart energy management services. This enables consumers and businesses to optimize energy use, store excess production, and gain grid independence. Energy-as-a-Service (EaaS) models—where solar-plus-storage setups are offered on a subscription basis—are becoming popular in commercial and industrial markets. These models reduce upfront costs and simplify system adoption, accelerating distributed solar...

The global solar panel market is experiencing robust growth, poised to expand significantly by 2033. This expansion is primarily driven by the global shift towards renewable energy sources, spurred by increasing environmental concerns and supportive government policies worldwide. Falling manufacturing costs and advancements in photovoltaic technology are making solar power more economically viable for residential, commercial, and utility-scale applications. The Asia-Pacific region, led by China and India, dominates the market due to massive investments and ambitious renewable energy targets. While North America and Europe continue to be significant markets with strong policy support, emerging economies in South America, Africa, and the Middle East are showing rapid adoption rates, driven by the need for energy security and electrification.

Key strategic insights from our comprehensive analysis reveal:

The Asia-Pacific region is the powerhouse of the global solar panel market, commanding the largest market share and exhibiting the highest growth rate, driven by massive manufacturing capabilities and government-led renewable energy projects in China and India.
Government incentives, subsidies, and favorable policies such as feed-in tariffs and tax credits are the primary catalysts for market growth across all key regions, significantly influencing investment decisions and project feasibility.
Technological innovation, particularly the shift towards higher-efficiency monocrystalline PERC, bifacial, and TOPCon panels, is a critical competitive differentiator that is reshaping the market landscape and driving down the levelized cost of energy.

Global Market Overview & Dynamics of Solar Panel Market Analysis The global solar panel market is on a significant upward trajectory, projected to grow from $129.239 billion in 2021 to $316.486 billion by 2033, at a CAGR of 7.749%. This growth is fueled by a confluence of factors including a global consensus on reducing carbon emissions, declining solar PV costs, and technological advancements enhancing panel efficiency. The market is witnessing a surge in utility-scale projects and a steady increase in rooftop installations for residential and commercial use, reflecting a broad-based transition to solar energy as a mainstream power source.

Global Solar Panel Market Drivers

Supportive Government Policies and Subsidies: Governments worldwide are implementing favorable policies, tax incentives, and subsidies to promote solar energy adoption and meet climate targets, significantly reducing the financial burden on consumers and investors.
Decreasing Cost of Solar Technology: Continuous innovation in manufacturing processes and economies of scale have led to a sharp decline in the cost of solar panels, making solar power one of the most cost-competitive sources of electricity.
Growing Environmental Concerns and ESG Mandates: Heightened awareness of climate change and corporate Environmental, Social, and Governance (ESG) goals are compelling industries and consumers to shift from fossil fuels to clean, renewable energy sources like solar.

Global Solar Panel Market Trends

Adoption of Advanced PV Technologies: There is a growing market trend towards adopting higher-efficiency technologies such as Passivated Emitter and Rear Cell (PERC), bifacial panels that capture light from both sides, and TOPCon cells to maximize energy output per unit area.
Integration with Energy Storage Systems: The integration of solar panels with battery energy storage systems (BESS) is becoming increasingly common, addressing the intermittency of solar power and providing a reliable 24/7 energy supply.
Development of Floating and Building-Integrated Solar: Innovative applications like floating solar farms (floatovoltaics) on water bodies and Building-Integrated Photovoltaics (BIPV) that replace conventional building materials are emerging as key trends to overcome land-use constraints.

Global Solar Panel Market Restraints

Intermittency and Dependence on Weather: The power generation from solar panels is inherently intermittent and dependent on sunlight availability, posing challenges for grid stability and requiring backup power or energy storage solutions.
High Initial Investment and Infrastructure Costs: Despite falling panel prices, the upfront cost for large-scale solar installations, including land, installation, and grid connection, remains a significant b...

India PV Products Market size was valued at USD 26.82 Billion in 2023 and is projected to reach USD 118.85 Billion by 2031, growing at a CAGR of 22.56% during the forecast period 2024-2031.

India PV Products Market: Definition/ Overview

Photovoltaic (PV) systems use semiconductors to directly convert sunlight into energy. When photons hit the PV panel's semiconductor material, they ionize it and release outer electrons from their atomic bonds. The semiconductor structure then pushes the electrons in one direction, creating an electrical current flow, which can be used to power electrical appliances and feed electricity into the grid. PV devices can power everything from small electronics to residential and commercial buildings. However, because crystalline silicon solar cells can only absorb specific wavelengths of light, they are not entirely efficient. Some wavelengths are reflected, some are too weak to produce electricity, and others produce heat energy instead. To promote the use of clean energy sources, there are favorable government programs and incentives, such as tax breaks and tariffs. This will help improve business prospects and support ongoing technological developments. As a result, the market for solar PV systems will grow due to the lower cost of solar energy and increased financial support. Regulatory measures, such as asset and financial leveraging and subsidies, will also be put in place to promote product acceptance. India, with the world's second-largest population after China, has a fast-increasing demand for energy, while fossil resources are becoming increasingly limited and expensive. Therefore, using the sun's energy makes sense. The Indian PV industry is likely to continue to develop as solar energy has become the most important source of renewable energy expansion worldwide.

A photovoltaic system uses the photovoltaic effect to convert light into energy. This is done using semiconducting materials that show the photovoltaic effect. Solar modules, each containing several solar cells, are used to generate electricity. PV panels can be installed on the ground, roof, wall, or water, and a solar tracker may be used to monitor the sun as it moves across the sky. PV as a primary source requires energy storage devices or worldwide distribution through high-voltage direct current power lines, both of which incur significant expenses.

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Solar Panels Market Size 2025-2029

The solar panels market size is forecast to increase by USD 60.1 billion, at a CAGR of 8.2% between 2024 and 2029.

The market is witnessing significant growth, driven by increasing investments in the renewable energy sector. This trend is fueled by governments and businesses worldwide seeking to reduce carbon emissions and promote sustainable energy solutions. Another key driver is the continuous advancements in thin-film solar photovoltaic (PV) modules, making solar energy more cost-effective and accessible. However, the intermittent nature of solar power poses a significant challenge. Solar energy production depends on sunlight availability, which can be unpredictable. This variability necessitates efficient energy storage solutions and smart grid management systems to ensure a consistent energy supply. Companies in the market must focus on developing innovative technologies to address this challenge and capitalize on the growing demand for renewable energy. By investing in research and development, collaborating with energy storage providers, and optimizing solar panel designs, companies can effectively navigate this market landscape and seize opportunities for growth.

What will be the Size of the Solar Panels Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, driven by technological advancements and expanding applications across various sectors. Off-grid systems, once a niche application, are increasingly gaining traction as an alternative power solution. Thin-film solar panels, with their flexibility and lower manufacturing costs, are finding new uses in solar powered appliances and buildings. Silicon wafer technology, a mainstay in solar panel manufacturing, faces competition from emerging alternatives. Solar powered refrigeration systems are revolutionizing cold storage solutions, while solar tracking systems optimize panel efficiency. Commercial solar adoption is on the rise, with businesses recognizing the cost savings and sustainability benefits. Solar panel warranty and performance degradation are key considerations for investors and consumers alike. Solar panel manufacturing processes are continuously improving, with a focus on reducing costs and increasing efficiency. Solar energy storage and solar energy policy are crucial components of the renewable energy landscape. Industrial solar applications are expanding, from powering factories to providing clean energy for heavy industry. Solar panel maintenance and cleaning are essential for maximizing system performance and longevity. Battery energy storage and net metering are transforming the way we store and distribute solar energy. Solar farm development and ground-mounted solar installations are shaping the future of utility-scale solar. Solar powered electronics, from calculators to smartphones, are becoming increasingly common. Solar powered homes and solar powered buildings are the future of sustainable living. The market is a dynamic and evolving landscape, with endless possibilities.

How is this Solar Panels Industry segmented?

The solar panels industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userPower utilitiesCommercialResidentialTypeCrystalline panelThin-film panelConnectivityOn-gridOff-gridTechnologySolar PVConcentrated solar power (CSP)GeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaRest of World (ROW).

By End-user Insights

The power utilities segment is estimated to witness significant growth during the forecast period.The solar panel market experienced significant growth in 2024, with the power utility segment leading the way. Utility-scale solar power plants continued to expand, contributing to the reduction of carbon emissions and the generation of clean energy. According to the International Energy Agency (IEA), renewable capacity additions reached record levels in 2024, with solar photovoltaics (PV) accounting for around 80% of the growth in renewable electricity capacity. China, the US, Germany, Japan, and India were among the major contributors to the utility segment. For instance, China installed 277 GW of solar capacity in 2024, as reported by the National Energy Administration (NEA). Residential solar installations also gained traction, with homeowners seeking to save on energy costs and reduce their carbon footprint. Solar panel financing options, such as leasing and power purchase agreements, made solar adoption more accessible. Solar panel costs continued to decline, making solar energy a cost-effective solution for both residential and commercial

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Solar Photovoltaic (PV) Market Size 2025-2029

The solar photovoltaic (pv) market size is valued to increase USD 58.47 billion, at a CAGR of 8.9% from 2024 to 2029. Increasing government support for solar power technology will drive the solar photovoltaic (pv) market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 37% growth during the forecast period.
By Deployment - Ground-mounted segment was valued at USD 47.36 billion in 2023
By End-user - Commercial segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 103.14 million
Market Future Opportunities: USD 58465.50 million
CAGR from 2024 to 2029 : 8.9%

Market Summary

In the global energy market, Solar Photovoltaic (PV) technology has emerged as a significant player, driven by increasing corporate commitments to decarbonization and expanding government incentives. The Solar PV market's value surpassed USD100 billion in 2020, reflecting a robust demand for clean, renewable energy solutions. This trend is expected to persist, fueled by advancements in solar cell efficiency and the ongoing decline in module prices.
However, competition from alternative energy sources, such as wind and hydropower, presents challenges. Solar PV's adaptability to various applications, from utility-scale power plants to rooftop installations, underpins its versatility and broad market appeal. As technology continues to evolve, Solar PV's role in the global energy landscape will only grow more prominent.

What will be the Size of the Solar Photovoltaic (PV) Market during the forecast period?

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How is the Solar Photovoltaic (PV) Market Segmented ?

The solar photovoltaic (pv) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Deployment

  Ground-mounted
  Rooftop


End-user

  Commercial
  Residential
  Utility


Technology

  Monocrystalline silicon
  Polycrystalline silicon
  Thin-film
  Bifacial solar panels
  Others


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    Spain


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Deployment Insights

The ground-mounted segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with ground-mounted systems leading the charge in absorbing sunlight and converting it into electricity. This process, known as photovoltaic energy conversion, involves transferring the generated charge to power electronics inverters for grid integration. The demand for utility-scale solar PV systems has surged in recent years, driven by the growing global population and increasing electricity needs. Technological advancements, economies of scale, and industry competition have driven down installation costs, making solar energy a cost-effective alternative. Solar resource assessment, including solar irradiance modeling and energy yield optimization, plays a crucial role in maximizing system performance.

Thin film photovoltaics and silicon wafer production are two key areas of innovation, with bifacial solar panels and perovskite solar cells promising higher efficiency. Solar panel installation and maintenance, including string inverter technology and microinverter technology, are essential for optimizing system performance and lifespan. Solar energy harvesting is further enhanced by solar tracker systems, which increase capacity factor metrics. Renewable energy integration and electrical grid stability are ongoing challenges, addressed through energy storage systems and photovoltaic system design. Solar panel degradation is a critical concern, with anti-reflective coatings and capacity factor metrics essential for mitigating its impact. According to industry reports, solar PV systems are expected to generate over 1,000 TWh of electricity annually by 2025.

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The Ground-mounted segment was valued at USD 47.36 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 37% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region is poised for substantial expansion during the forecast period. In 2024, China, Japan, India, Australia, and South Korea emerged as the leading countries in the APAC

India Solar Photovoltaic Market size was valued at USD 8.47 Billion in 2023 and is projected to reach USD 26.4 Billion by 2031 growing at a CAGR of 13.1% from 2024 to 2031.

Key Market Drivers:

Government Support for Renewable Energy: India's ambitious renewable energy targets and policies are propelling solar PV market growth. The Ministry of New and Renewable Energy (MNRE) wants to achieve 280 GW of solar power capacity by 2030, up about 300% from 70 GW in 2023, demonstrating the government's strong commitment to solar energy growth.

Declining Solar Equipment Costs: The huge drop in solar panel and equipment prices has made solar energy economically viable. According to IRENA, solar photovoltaic module prices in India have dropped by nearly 89%, from $2/watt in 2010 to less than $0.22/watt in 2022, making solar power competitive with fossil fuel-based electricity generation.

The Indian solar energy market is experiencing robust growth, driven by the government's ambitious renewable energy targets, declining solar module prices, and increasing energy demand. With a CAGR of 19.80% from 2019-2033, the market presents significant investment opportunities. The market's size in 2025 is estimated to be substantial, considering the high CAGR and consistent growth trends in the renewable energy sector globally. While precise figures are not provided, logical estimation based on industry reports and considering India's rapid adoption of solar energy projects points to a multi-billion dollar market in 2025. The market is segmented into Solar Photovoltaic (PV) and Concentrated Solar Power (CSP), with PV dominating due to its cost-effectiveness and scalability. Key drivers include government policies promoting solar energy adoption, such as the Jawaharlal Nehru National Solar Mission, and incentives for rooftop solar installations. Furthermore, the decreasing cost of solar modules and technological advancements are making solar energy increasingly competitive with conventional energy sources. However, challenges remain, including land acquisition issues, grid integration complexities, and the intermittent nature of solar power. Despite these restraints, the long-term outlook for the Indian solar energy market remains positive. The increasing awareness of climate change and the need for sustainable energy solutions are further fueling market growth. The participation of both domestic and international players, including industry giants like Adani Solar, Tata Power Solar, First Solar, and JinkoSolar, underscores the market's attractiveness. Future growth will be significantly influenced by continued government support, technological innovations focusing on energy storage solutions to mitigate intermittency, and the expansion of the national grid to effectively accommodate the influx of renewable energy. The proactive measures taken by the Indian government to overcome challenges and accelerate the transition to clean energy are expected to further amplify the market's expansion in the coming years. Recent developments include: December 2022: The Government of India, Solar Energy Corporation of India Limited (SECI), and the World Bank signed agreements for a USD 150 million International Bank for Reconstruction and Development (IBRD) loan, a USD 28 million Clean Technology Fund (CTF) loan, and a USD 22 million CTF grant to assist India in increasing its power generation capacity through cleaner and renewable energy sources. The agreement reaffirmed India's goal of reaching 500 gigatons (GW) of renewable energy by 2030., September 2022: Amazon India announced three solar farm projects in Rajasthan with a total combined clean energy capacity of 420 megawatts (MW). The company's set of utility-scale renewable energy projects in India included a 210 MW project to be developed by ReNew Power, a 100 MW project by Amp Energy India, and a 110 MW project to be developed by Brookfield Renewable., January 2022: SJVN (Satluj Jal Vidyut Nigam Ltd) was awarded a 125-megawatt solar project in Uttar Pradesh following a bidding procedure conducted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The project included a 75 MW grid-connected solar project in Jalaun and a 50 MW solar project in the Kanpur and Dehat districts.. Key drivers for this market are: 4., Supportive Government Policies for Developing Solar Energy4.; Declining Cost of Solar Power Technology. Potential restraints include: 4., Supportive Government Policies for Developing Solar Energy4.; Declining Cost of Solar Power Technology. Notable trends are: Solar PV Segment is Expected to Dominate the Market.

Global solar energy market worth at USD 271.73 Million in 2024, is expected to surpass USD 1090.78 Million by 2034, with a CAGR of 13.6% from 2025 to 2034.

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Residential Solar Photovoltaic (PV) Systems Market Size 2024-2028

The Residential Solar Photovoltaic (PV) systems market size is valued to increase USD 13.25 billion, at a CAGR of 4.73% from 2023 to 2028. Favourable government policies for solar power will drive the Residential Solar Photovoltaic (PV) systems market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 69% growth during the forecast period.
By Type - On grid segment was valued at USD 41.14 billion in 2022
By Technology - Crystalline silicon segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 38.81 million
Market Future Opportunities: USD 13250.00 million
CAGR : 4.73%
APAC: Largest market in 2022

Market Summary

The market represents a significant and continually evolving sector in the renewable energy industry. Core technologies, including monocrystalline, polycrystalline, and thin-film solar cells, are driving advancements in the efficiency and affordability of residential solar systems. Applications span from standalone systems for off-grid homes to grid-connected systems for net metering and energy independence. Service types, such as installation, maintenance, and monitoring, are essential components of the market's growth. The increasing adoption of microgrids and the rising number of alternative energy sources contribute to the market's dynamic landscape.
Favorable government policies, including incentives and subsidies, continue to fuel the market's expansion. For instance, according to the Solar Energy Industries Association, solar accounted for 43% of all new electric generating capacity added in the United States in 2020. These trends and more highlight the market's continuous evolution and the opportunities and challenges shaping its future.

What will be the Size of the Residential Solar Photovoltaic (PV) Systems Market during the forecast period?

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How is the Residential Solar Photovoltaic (PV) Systems Market Segmented and what are the key trends of market segmentation?

The Residential Solar Photovoltaic (PV) systems industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  On grid
  Off grid


Technology

  Crystalline silicon
  Thin film


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    India


  Rest of World (ROW)

By Type Insights

The on grid segment is estimated to witness significant growth during the forecast period.

The market is witnessing significant growth as homeowners seek to reduce energy consumption and costs. According to recent studies, the adoption of solar PV systems in residential applications has risen by approximately 18%, with an estimated 2 million households in the US now utilizing solar energy. Looking ahead, industry experts anticipate a continued expansion, with expectations of a 25% increase in the number of solar installations over the next five years. Key components of these systems include solar irradiance modeling for optimal panel placement, NEC compliance for electrical safety, and solar panel degradation analysis for predictive maintenance.

String inverters, system performance monitoring, and PV system design ensure efficient energy conversion and capacity factor optimization. Demand-side management and grid integration enable the systems to balance power consumption and supply, while electrical safety standards and rooftop solar installation processes maintain regulatory compliance. Crystalline silicon remains the dominant solar panel technology, with high efficiency and reliability. Charge controllers and PV module testing ensure optimal performance, while solar array sizing and load balancing maintain system efficiency. Smart grid integration and energy storage systems, including battery storage capacity, provide additional benefits by storing excess energy for later use. Photovoltaic cells, system lifetime, and power electronic converters contribute to the overall system efficiency and performance.

Shading analysis and thin-film solar cells cater to specific application requirements, while solar energy harvesting and remote monitoring systems enable real-time system performance tracking. Performance ratios, dc-ac conversion, and energy consumption monitoring provide valuable insights into system efficiency and cost savings. Inverter technology plays a crucial role in converting DC power from solar panels to AC power for use in homes. Energy yield prediction models help homeowners optimize their energy production and consumption, ultimately reducing their reliance on traditional power sources.

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The Indian solar photovoltaic (PV) industry is experiencing robust growth, driven by supportive government policies aimed at increasing renewable energy adoption, decreasing solar PV module costs, and rising energy demands. The market, valued at approximately ₹XX million in 2025 (assuming a logical estimation based on the provided CAGR of >8.90% and unspecified market size "XX"), is projected to witness a Compound Annual Growth Rate (CAGR) exceeding 8.90% from 2025 to 2033. This expansion is fueled by a surge in large-scale solar power projects, particularly in the utility sector, coupled with increasing adoption of rooftop solar systems in residential and commercial & industrial (C&I) segments. Thin-film and crystalline silicon technologies dominate the PV module market, while ground-mounted systems constitute a significant portion of overall deployments. However, the industry faces challenges such as land acquisition complexities for large-scale projects, grid infrastructure limitations, and fluctuating solar panel prices. Despite these headwinds, the long-term outlook remains positive, driven by India's ambitious renewable energy targets and the decreasing levelized cost of electricity (LCOE) for solar power. The competitive landscape includes a mix of domestic and international players. Leading Indian companies like Adani Group, Tata Power Solar Systems Ltd, and Vikram Solar Limited are major contributors, competing with global giants like First Solar Inc, Trina Solar Limited, and Hanwha Q CELLS Co Ltd. The market's future growth hinges on continued government support, technological advancements leading to enhanced efficiency and cost reductions, and successful integration of solar power into the national grid. Further diversification within the end-user segments, particularly driving penetration into rural areas and smaller businesses, will also be critical in sustaining this high growth trajectory. Investing in research and development to improve indigenous manufacturing capabilities will be essential in reducing reliance on imports and fostering self-sufficiency within the Indian solar PV sector. Recent developments include: In January 2022, SJVN (Satluj Jal Vidyut Nigam Ltd.) bagged a solar project of 125MW in Uttar Pradesh, through a bidding process held by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). It includes a 75MW grid-connected solar PV project in Jalaun and a 50MW solar project in Kanpur Dehat districts., In December 2021, Tata Power clinched the largest solar plus battery project in India from Solar Energy Corporation of India. The contract includes a 100MW EPC solar project and a 120MWh utility-scale Battery Energy Storage System. The total project outlay was around INR 945 crores.. Notable trends are: Rooftop Solar PV Segment Expected to Dominate the Market.

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Solar PV Balance Of Systems (BOS) Market Size 2025-2029

The solar PV balance of systems (BOS) market size is forecast to increase by USD 58.93 billion at a CAGR of 25.9% between 2024 and 2029.

The market is experiencing significant growth, driven by escalating investments in renewable energy and advancements in inverter technology. The BOS market encompasses components and systems essential to the operation of solar photovoltaic (PV) systems, excluding the solar panels themselves. This market's expansion is fueled by the global shift towards clean energy and the continuous improvement of BOS technologies, which enhance system efficiency and performance. However, the market's growth potential is tempered by regulatory hurdles and supply chain inconsistencies. Governments worldwide are implementing policies that impact the solar industry, such as subsidy reductions and complex approval processes, which can hinder market penetration. The market encompasses the production and supply of backsheets used in photovoltaic (PV) devices, including solar panels and solar modules.
Furthermore, the solar PV BOS market faces competition from other energy sources, such as wind and hydroelectric power, which can influence project investments. To capitalize on market opportunities and navigate these challenges effectively, companies must stay informed of regulatory developments and invest in robust supply chain management strategies. By doing so, they can ensure a steady supply of high-quality components and maintain their competitive edge in the evolving renewable energy landscape. The market exhibits growth due to the expanding renewable energy sector and the increasing adoption of solar power as a primary energy source.

What will be the Size of the Solar PV Balance Of Systems (BOS) Market during the forecast period?

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The market encompasses a range of technologies and services essential for optimizing the performance and efficiency of solar power installations. Key components include energy management systems, intermittent energy solutions, solar simulation software, voltage optimization, grid integration, Operations and Maintenance (O&M), carbon reduction strategies, solar insurance, yield optimization, and distributed generation. Power electronics, smart grids, solar resource assessment, remote diagnostics, energy storage systems, and battery management systems are also integral. These elements address challenges such as solar irradiance variability, grid integration, and demand response.
Project financing, energy efficiency technologies, renewable energy credits, solar policy, and solar regulation are crucial for the economic viability and growth of the market. Life cycle costs, fault detection, performance monitoring, and solar modeling are essential for maximizing solar asset value and minimizing greenhouse gas emissions.

How is this Solar PV Balance Of Systems (BOS) Industry segmented?

The solar PV balance of systems (BOS) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Structural
  Electrical
  Inverter


End-user

  Commercial
  Industrial
  Residential


Component

  Inverters
  Mounting systems
  Monitoring and control systems
  DC cabling
  Others


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Product Insights

The structural segment is estimated to witness significant growth during the forecast period. The Solar Photovoltaic (PV) Balance of Systems (BOS) market encompasses various components that support the operation and functionality of solar power systems. These components include solar consultants for project development, engineering procurement construction (EPC) firms, protection, solar incentives, dc optimizers, string inverters, power optimizers, solar leases, and financing solutions. Additionally, the market incorporates solar panel cleaning services, energy storage systems, solar contractors, and remote monitoring systems. Structural BOS components, such as mounting structures, cable management, combiner boxes, and solar trackers, play a crucial role in the PV system's structure. Ground-mount trackers, fixed-tilt, and rooftop mounting systems, fasteners, brackets, enclosures, racks, and other supporting components are essential for solar farms, utility-scale projects, and residential installations. Technological advances have led to the development of UV-resistant polymers like Polyvinylidene fluoride (PVDF) and Polyethylene terephthalate (PET), which enhance the electrical properties and surface properties of solar backsheets.

The s

The booming grid-connected PV system market is projected for significant growth through 2033, driven by renewable energy initiatives and falling costs. This analysis explores market size, CAGR, key players (Esolar, Canadian Solar, Trina Solar), regional trends, and future projections for this rapidly expanding sector.

The India solar tracker market is booming, projected to reach ₹3697 million by 2033 with a CAGR exceeding 5%. Driven by government initiatives and increasing solar adoption, this market analysis explores key trends, restraints, and leading companies, offering insights for investors and stakeholders. Recent developments include: In April 2022, Tata Power Solar Systems commissioned India's largest single axis solar tracker system in the 300 MW Dholera Solar Power Plant. This project will generate 774 MUs annually. Along with this it will reduce approximately 704340 MT/year of carbon emissions., In August 2021, GameChange Solar supplied its single-axis Genius Tracker equipment to a 394 MW PV projec set up by Tata Power in Gujarat.. Notable trends are: Photovoltaic Segment to Dominate.