The trajectory of the Indian solar industry is on an upward trend. In 2023, India’s solar capacity has surged to 72 GW, a remarkable increase from the mere 10-20 MW recorded in 2010. Moreover, the nation has contributed 12% to the global upswing in solar generation during the first half of this year with solar photovoltaic modules, signalling a sustained and steady progression toward green energy adoption.
Several factors propel the growth of the Indian solar sector, including supportive government policies, diminishing costs of solar panels, favourable weather conditions, and heightened private investments.
In regards of trends that are acting as driver for growth in this industry, we can highlight-
- Country’s preference of adopting to high-efficiency solar cell powered modules
- Growth in solar manufacturing capacity (from 18 GW in March 2022 to 38 GW in March 2023)
- Favourable policy environment
- Growing investment in solar (Non-conventional energy sector received FDI inflow of US$ 14.12 billion between April 2000 -March 2023 and US$ 75 billion investment from the UAE is expected to promote further investments in the country)
- Growing focus on energy storage (market for recycled EV batteries in India is predicted to reach 128 GWh by 2030)
The Government of India (GoI) has implemented a range of policies and initiatives to foster the industry’s expansion. These measures encompass financial incentives, tax advantages, subsidies for solar power generation, net-metering regulations, Basic Customs Duty, Production Linked Incentive (PLI), and the Aatmanirbhar campaign—all aimed at incentivizing the widespread installation of solar photovoltaic modules.
Collectively, these policies possess the potential to propel India toward achieving its target of 7% GDP growth over the next decade. Such an achievement is likely to attract more investors to the equity market and enhance the country’s overall economic outlook.
The expansion of the solar industry has yielded positive economic outcomes, such as the creation of job opportunities, a decrease in the nation’s reliance on fossil fuels (resulting in a $4.2 billion saving in fuel costs through solar power generation in the first half of 2022), and the advancement of sustainable development.
In this global solar revolution, people selecting sustainable energy still have to do a focused assessment of their energy need and budget with solar panels cost calculator. They need to check and select Tier -1 solar solution providers that offer BIS certified solar panels. People opting for solar need to make sure that their solar modules are of high quality, come with performance warranty and are durable like Vikram Solar panels.
Looking ahead to the future of the Indian solar sector, optimism prevails, with the government aiming to reach 500 GW of renewable energy capacity by 2030, with a substantial portion—280 GW—allocated to solar power. Focus through policies, building a solar ecosystem in the country and consistently helping domestic solar manufacturers will support industry growth and bring in increased private investments.