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India Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

India Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The solar energy market in India is expected to grow at a CAGR of more than 8% during the forecast period. The COVID-19 impact was mainly witnessed on the supply of solar panels and the delays in solar projects.? The country was hit hard by the COVID-19 outbreak, which forced the government to employ either complete or partial lockdown, resulting in disruption of the solar panels manufacturing industry during the first half of 2020. Most of the projects of 2020 already got the finance clearances in 2019. Hence, these projects are expected to continue. However, the lockdown affected the construction and the availability of the solar panels resulting in project delays. However, this situation is expected to recover in 2021.? Major factors driving the market are the declining cost of the solar modules and the government policies like allowing 100% FDI under automatic route for renewable power generation and distribution projects which is expected to increase the participation from global players into the Indian market. Moreover, the sharp decline in prices of solar technologies in recent years by more than 52% between 2010 and 2019 has been one of the biggest drivers in the adoption of solar PV in the country. However, the cost of modules produced in China is 8-10% cheaper than the one manufactured in India and about 80-85% of the solar modules used in India are manufactured in China. Therefore, the huge dependency on imports has affected domestic manufacturing in the country, which is further expected to hinder the growth of the market.

- The solar PV segment dominated the market share in 2019 and is expected to be the largest segment during the forecast period, owing to supportive government policies to develop clean energy generation in the country's energy mix.
- India has adubance of solar irradiance and receives solar energy throughout the year. This has created enormous opportunities to exploit solar energy from the sunniest sites in the country, especially, Rajasthan, Gujarat and Andhra Pradesh. The aforementioned factor clubbed with foreign investment and extensive R&D projects provides an opportunity for the growth of the solar energy market in India.
- The Government of India has taken several initiatives with the Ministry of New and Renewable Energy (MNRE) drafting plans and putting out tenders, which in turn is expected to drive the market during the forecast period.

Key Market Trends

Solar PV to Dominate the Market

- According to the Ministry of New and Renewable Energy (MNRE), India had a total installed capacity of more than 34 GW of solar PV. Moreover, India is endowed with a very vast solar energy potential. The average solar radiation incident over the land is in the range of 4-7 kWh per day. Solar power played an almost non-existent role in the Indian energy mix until 2007.
- However, solar energy is becoming inexpensive in comparison to other conventional energy sources due to innovations in the solar sector that have reduced the global average selling prices of solar PV. With the anticipated improvements in technology and increased supply of panels from China/Europe, the capital costs are expected to stabilize at lower levels. As a result, investors/developers are expected to focus on the commercial viability of solar projects.
- With the government promoting solar installations in the rural areas by providing subsidized solar panels and another incentive, the solar PV installation is expected to increase during the forecast period and is expected to drive the market.

Supportive Government Policies to Drive the Market

- The country has identified the potential of renewable energy, such as solar and wind, in decarbonizing the economy and meeting targets as per the Paris Agreement, and the Government of India has been bent towards increasing the share of renewables in the country's energy mix.
- The government is aiming at 25,750 MW of new power generation capacity from solar plants under the ambitious Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme by 2022, with total financials of more than INR 32,000 crore.
- Moreover, back in 2016, India's government pledged that 40% of the country's installed electricity capacity is expected to come from renewable sources by 2030 as part of its Nationally Determined Contribution (NDC) for the commitments made at the Paris Agreement.?
- As part of the Paris Agreement commitments, India's government set an ambitious target of achieving 175 GW of renewable energy capacity by 2022. In July 2019, the government announced that it was planning to increase the renewable energy target to 500 GW by 2030 to clean up the air in its cities and lessen the rapidly growing economy's dependence on coal.
- The Ministry of New and Renewable Energy had launched the scheme in 2019, with three components -- installation of 10,000 MW capacity through small renewable energy-based power plants of capacity up to 2 MW each on barren or fallow land of farmers; installation of 17.5 lakh standalone off-grid solar water pumps; and solarisation of 10 lakh existing grid-connected agriculture pumps.
- Moreover, the government in planning is to add 175 GW of renewable energy by 2022 which includes 100 GW of solar and 60 GW of wind energy. The country has spend more on investment in solar PV than in all fossil fuel sources of electricity generation together. Therefore, the government schemes and plans to increase the renewables share in energy mix is expected to drive the solar energy market in India,

Competitive Landscape

The solar energy market in India is moderately fragmented. Some of the major companies operating in the market include Adani Group, EMMVEE SOLAR, Azure Power Global Limited, JinkoSolar Holdings Co. Ltd, and First Solar Inc.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.1 Scope of the Report
1.2 Market Definition
1.3 Study Assumptions



4.1 Introduction
4.2 Renewable Energy Mix, India, As of March 2021
4.3 Installed Capacity and Forecast, in GW, until 2026
4.4 Government Policies and Regulations
4.5 Recent Trends and Developments
4.6 Market Dynamics
4.6.1 Drivers
4.6.2 Restraints
4.7 Supply Chain Analysis
4.8 PESTLE Analysis

5.1 Solar Photovoltaic (PV)
5.2 Concentrated Solar Power (CSP)

6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Domestic Players Adani Group Emmvee Solar Mahindra Susten Pvt. Ltd Sterling and Wilson Pvt. Ltd Tata Power Solar Systems Ltd Vikram Solar Limited ReNew Power Pvt. Ltd NTPC Ltd. Azure Power Global Ltd
6.3.2 Foreign Players JinkoSolar Holdings Co. Ltd First Solar Inc. Hanwha Q Cells Co. Ltd SMA Solar Technology AG Trina Solar Limited


Report Title: India Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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