Report Overview

An increasing cost of conventional electricity, a spurring demand for renewable energy driven by the government’s supportive subsidies and net metering policies, and growing adoption of advancements in solar technology enhancing efficiency and affordability are expected to drive the India Solar Rooftop Market during the forecast period between 2024 and 2030.

India Solar Rooftop Market – Industry Trends & Forecast Report, 2030

The India Solar Rooftop Market size was estimated at USD 5.23 billion in 2023. During the forecast period between 2024 and 2030, the India Solar Rooftop Market size is projected to grow at a CAGR of 7.88% reaching a value of USD 6.19 billion by 2030. Prominent drivers of the market include an increasingly high demand for renewable energy from the commercial and industrial sectors, along with government initiatives promoting renewable energy integration. Solar Rooftop installations empower individuals and businesses to embrace clean and sustainable electricity generation, fostering energy independence and environmental well-being. Also, growing consumer and business awareness regarding the detrimental effects of fossil fuels is propelling market expansion. Solar energy emerges as the clean, sustainable answer, mitigating greenhouse gas emissions and lessening reliance on non-renewable resources. Technological advancements and economies of scale have slashed solar panel costs in recent years, making this clean energy solution more financially attractive for homeowners and businesses, thereby accelerating its market adoption.

Solar Rooftop – Overview

Solar Rooftop refers to the installation of photovoltaic (PV) panels on the roof of a building to generate electricity from sunlight. PV systems convert sunlight directly into electricity, which can be used to power the building's electrical systems, stored in batteries, or fed into the electric grid. Solar Rooftop systems can be installed on residential, commercial, or industrial buildings and are a key component of distributed renewable energy generation. They help reduce reliance on fossil fuels, decrease electricity costs, and lower carbon emissions.

India Solar Rooftop Market

Growth Drivers

Growing Demand for Clean Energy

The growing demand for clean energy is significantly enhancing the India Solar Rooftop Market. Renewable energy has become increasingly popular due to its cost-effectiveness, low maintenance requirements, and ability to reduce the carbon footprint by cutting greenhouse gas emissions. The shortage of conventional energy sources like coal further accelerates the shift towards solar energy. As reported by the United Nations, resource extraction and processing contribute to half of the global greenhouse gas emissions. The photovoltaic cells in solar panels harness sunlight to generate electricity efficiently. Government initiatives, such as the Suryodaya scheme, are pivotal in this growth. By providing 300 units of free electricity monthly to 10 million households, the scheme aims to add nearly 30GW of Solar Rooftop capacity. Despite challenges like policy inconsistencies and financing hurdles, advancements in solar technology and reduced costs make Solar Rooftop increasingly viable and attractive. As of December 2023, Solar Rooftop capacity stood at 11GW, representing 14.5% of India’s total installed solar capacity. This growth underscores the significant role of clean energy in driving the expansion of the Solar Rooftop market in India.

Supportive Subsidies and Net Metering Policies

India's Solar Rooftop market is propelled by government initiatives, particularly subsidies and net metering policies. The Ministry of New and Renewable Energy (MNRE) reports India as the fifth global leader in solar power deployment, with 70.10 GW capacity commissioned as of June 30, 2023. Solar Rooftop capacity surged to 8,877 MW by March 2023, attributed partly to heightened awareness and government subsidies. Notable initiatives include Rajasthan Electricity Regulatory Commission's expansion of net metering capacity to 1 MW in March 2024 and Tamil Nadu Electricity Regulatory Commission's 50% network charge exemption for MSME Solar Rooftop consumers in November 2023. Such incentives drive market growth, with new schemes expected to further fuel adoption across residential, commercial, and industrial sectors.

Challenges

Government Policy Impact

Changes in government policies or subsidies can significantly affect the growth of the India Solar Rooftop Market. Reductions or removals of subsidies may discourage adoption by making solar systems less financially attractive for consumers. Similarly, inconsistent policies can create uncertainty, leading to hesitancy among investors and consumers. Conversely, stable, and supportive policies can spur growth by providing clarity and incentives for investment in Solar Rooftop installations. Therefore, fluctuations in government policies or subsidies can hinder the growth of the India Solar Rooftop Market.

Impact of Escalating Geopolitical Tensions on India Solar Rooftop Market

Intensifying geopolitical tensions can have a multifaceted impact on the India Solar Rooftop Market. Such tensions may disrupt supply chains, leading to shortages of critical components like solar panels and inverters. Additionally, heightened uncertainties can deter foreign investment, slowing down the pace of project development. Instability can also result in fluctuating currency exchange rates, increasing project costs. Moreover, geopolitical conflicts may divert government attention and resources away from renewable energy initiatives, delaying policy implementations and regulatory support for the solar sector. Consequently, the Solar Rooftop market in India may experience slowdowns or setbacks due to escalating geopolitical tensions.

India Solar Rooftop Market

Segmental Coverage

India Solar Rooftop Market – By Capacity

By capacity, the India Solar Rooftop Market is divided into <10 kW, 11–100 kW, and >100 kW segments. The 11–100 kW capacity segment holds the highest share in the India Solar Rooftop Market. It is primarily due to its versatility and applicability across diverse consumer segments. This segment appeals to a broad spectrum of consumers, including small and medium-sized enterprises (SMEs), educational institutions, and residential complexes. Its moderate capacity strikes a balance between meeting energy needs and ensuring cost-effectiveness, making it attractive for a wide range of rooftop installations. Also, government incentives and favorable policies often target this segment, further driving its market share growth.

India Solar Rooftop Market – By Connectivity

Based on connectivity, the India Solar Rooftop Market is split into On-Grid and Off-Grid segments. The on-grid segment holds a higher share in the India Solar Rooftop Market by connectivity. It can be attributed to its seamless connectivity to the utility grid. With photovoltaic panels linked to the grid through inverters, consumers can efficiently feed excess electricity into the central power system, typically through net-metering arrangements. This setup is favored by various consumer segments, including commercial, industrial, and residential users, seeking to slash electricity costs. India's substantial growth in on-grid solar PV systems stems from supportive government policies and initiatives like the Grid Connected Solar Rooftop Scheme, aiming for a cumulative installed capacity of 40,000 MW by March 2026. Schemes like the Solar Rooftop Program Phase-II and the National Portal streamline installation processes and incentivize adoption, propelling the on-grid segment's expansion. As evidenced by Gujarat, Maharashtra, and Karnataka's significant capacities, the on-grid segment is poised for further growth, driven by rising Solar Rooftop adoption and robust government support.

India Solar Rooftop Market – By End User

Based on end user, the India Solar Rooftop Market is divided into Residential, Commercial, and Industrial segments. The residential segment holds the highest share in the India Solar Rooftop Market by end user. Residential consumers increasingly seek sustainable and cost-effective energy solutions, with Solar Rooftop installations offering them the opportunity to generate their own clean energy and reduce electricity bills. Government incentives and subsidy programs specifically target residential installations, making them more financially accessible. Advancements in solar technology have also made Solar Rooftop systems more efficient, affordable, and aesthetically appealing, further driving residential adoption. Overall, a combination of environmental consciousness, financial incentives, and technological advancements makes the residential segment the leading choice for Solar Rooftop adoption in India.

India Solar Rooftop Market – By Region

Geographically, the India Solar Rooftop Market is divided into North India, South India, East India, and West India regions. South India region holds the highest share in the India Solar Rooftop Market. It is primarily driven by its substantial solar and wind energy potential. States like Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, and Telangana boast significant renewable energy resources, totaling 1,526 GW of solar energy potential and 1,124 GW of wind energy potential. However, realizing this potential necessitates substantial investments in strengthening intra-region transmission infrastructure. Collaborative efforts among policymakers, industry stakeholders, and civil society are crucial to accelerate South India's transition to net-zero emissions, positioning it as a leader in Solar Rooftop adoption and contributing significantly to India's renewable energy targets by 2030.

Competitive Landscape

Major players operating in India Solar Rooftop Market include Tata Power Solar, Adani Solar, Vikram Solar, Waaree Energies, Renew Power, Azure Power, CleanMax Solar, Hero Future Energies, Fourth Partner Energy, and Amplus Solar. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2024 - Apple revealed its plans to collaborate with CleanMax, a renewable energy developer, to invest in six Solar Rooftop projects in India. These projects, with a combined capacity of 14.4 MW, aim to power Apple's facilities, including offices and retail stores in Mumbai and New Delhi, once operational.

• In March 2024 - GAIL (India) issued a call for bids for a Solar Rooftop project. The project involves the design, supply, installation, testing, and commissioning of a grid-tied Solar Rooftop PV system. Additionally, it encompasses a comprehensive 5-year Annual Maintenance Contract (AMC) to distribute electricity generated by the project to the Krishna Godavari Basin region.

Scope of the Report

By Capacity

• <10 kW

• 11–100 kW

• >100 kW

By Connectivity

• On-Grid

• Off-Grid

By End User

• Residential

• Commercial

• Industrial

By Region

• North India

• South India

• East India

• West India