India Solar Energy Market Size, Share, Trends and Forecast by Deployment, Application, and Region, 2026-2034

India Solar Energy Market Overview:

The India solar energy market size reached USD 30,032.78 Million in 2025. The market is projected to reach USD ‎5,38,913.68 ‎Million by 2034, exhibiting a growth rate (CAGR) of 37.82% during 2026-2034. The solar energy market is driven by robust government policies, falling technology costs, and rising private sector investment. Government initiatives provide stability and incentives, while technological advancements lower costs and improve efficiency. Additionally, increased private investment fosters competition, innovation, and long-term market sustainability, contributing to the India solar energy market share.

India Solar Energy Market Trends:

Policy Support and Regulatory Frameworks

The active government initiatives and regulatory backing are bolstering the market growth by providing policy stability, financial incentives, and streamlined approvals that attract investment and accelerate project deployment. The launch of national initiatives in conjunction with state-level programs, is creating a favorable atmosphere for investment and growth. Long-term renewable energy goals are ensuring market stability, while initiatives such as solar farms, viability gap financing, and reverse auction bidding are improving project feasibility. Regulatory tools like renewable purchase obligations (RPOs) and beneficial net metering policies enhance motivation for adoption in various sectors. Moreover, simplifying land acquisition procedures and approvals for grid connectivity are aiding in more efficient project execution. The government's dedication to lowering carbon emissions through international agreements also contribute to the growth of the market. The synchronization of policy directives with market requirements is establishing a strong basis for ongoing expansion in solar energy, drawing interest from both local and global investors.

Declining Technology Costs and Improved Efficiency

Improvements in technology and economies of scale are resulting in a steady decrease in the price of solar photovoltaic (PV) systems, making solar energy more competitive compared to traditional power sources. The decrease in capital spending, supported by advancements in module efficiency, inverter functionality, and system design, are enhancing project economics in utility-scale, rooftop, and off-grid sectors. Manufacturers are benefiting from enhancements in global supply chains and mass production abilities, which are further reducing costs. Furthermore, advancements in technology are improving energy conversion efficiency, reducing the cost per kilowatt-hour throughout a system’s lifetime. These advancements are allowing developers to provide reduced rates, increasing the demand from commercial, industrial, and residential users. The competitive pricing of solar energy, along with reduced operational costs and limited maintenance needs, is making it a compelling long-term investment. With ongoing advancements in energy storage and hybrid technology, the economic viability of solar initiatives is anticipated to improve further, solidifying its position as a primary energy source in India.

Increasing Private Sector Participation and Investment Flows

The rise in private sector participation, driven by attractive returns, stable policies, and robust expansion opportunities, are contributing to the India solar energy market growth. Independent power producers (IPPs), infrastructure funds, and institutional investors are vigorously investing in both utility-scale and distributed solar projects. Financial tools like green bonds, infrastructure investment trusts (InvITs), and funds concentrating on renewable energy are facilitating diversified investment avenues. Additionally, India’s comparatively low labor and construction expenses enhance project profitability, positioning it as an appealing location for international developers and equipment providers. The creation of public-private partnership (PPP) frameworks is further encouraging joint development, minimizing project risks. Clear bidding processes and an evolving regulatory landscape are bolstering investor trust. Moreover, long-term power purchase agreements with reliable off-takers, such as government utilities and major corporations, provide financial security to developers. The growing involvement of private entities is enhancing capacity growth while promoting competition, innovation, and efficiency throughout the value chain, thus strengthening the overall sustainability of the solar industry.

India Solar Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on deployment and application.

Deployment Insights:

• Rooftop
• Ground-mounted

The report has provided a detailed breakup and analysis of the market based on the deployment. This includes rooftop and ground-mounted.

Application Insights:

• Residential
• Commercial and Industrial
• Utility-scale

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes residential, commercial and industrial, and utility-scale.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Solar Energy Market News:

• September 2025: Oil India Limited and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) signed a joint venture agreement to develop a 1.2 GW renewable energy project in Rajasthan, including 1,000 MW solar and 200 MW wind power. This collaboration supports India’s green energy transition and aims to supply clean power to distribution companies and commercial customers. The project marks a significant step in expanding India’s renewable energy capacity.
• June 2025: The Ministry of New and Renewable Energy launched the Innovative Projects Start-Up Challenge to boost rooftop solar and distributed renewable energy innovations in India. The challenge offers ₹2.3 crore in prizes and provides incubation, pilot opportunities, and mentorship to winners.

India Solar Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the India solar energy market performed so far and how will it perform in the coming years?
• What is the breakup of the India solar energy market on the basis of deployment?
• What is the breakup of the India solar energy market on the basis of application?
• What is the breakup of the India solar energy market on the basis of region?
• What are the various stages in the value chain of the India solar energy market?
• What are the key driving factors and challenges in the India solar energy market?
• What is the structure of the India solar energy market and who are the key players?
• What is the degree of competition in the India solar energy market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India solar energy market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India solar energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India solar energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.