INDIA SOLAR PV MODULE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

India Solar PV Module Market Analysis & Forecast: 2025-2032

India Solar PV Module Market is estimated to be valued at USD 9,538.8 Mn in 2025 and is expected to reach USD 20,908.6 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 11.86% from 2025 to 2032.

Key Takeaways

• In terms of Grid Type, the On-Grid segment is projected to command the largest share of 79.6% in 2025, driven by the presence of established electricity infrastructure and ease of integration with national grids.
• In terms of Type, Monocrystalline segment is estimated to contribute the highest market share of 48.9% in 2025, owing to its technological superiority over other types.
• In terms of End User, Residential segment is estimated to contribute the highest market share of 52.7% in 2025, due to extensive rooftop potential across urban and suburban regions.
• In terms of Application, Grid-Connected segment is estimated to contribute the highest market share of 46% in 2025, due to large scale commercial and utility applications.

Market Overview

India Solar PV Module Market growth is due to the government of India, that has set an ambitious target of producing 450GW of renewable energy by 2030, and this boosts investments in solar projects. Favorable net-metering policies and tax incentives for residential solar installations have boosted demand from the rooftop solar segment. Low module prices and continuous technological advancements makes solar energy more accessible and cost-effective as compared to traditional energy sources. The interest of major global module manufacturers to increase production capacity in India can drive the market growth.

Current Events and Its Impact on the India Solar PV Module Market

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Role of Artificial Intelligence (AI) in India’s Solar PV Market

AI is transforming India’s solar PV manufacturing by optimizing production, ensuring quality, and enhancing operational efficiency. Machine learning enables automated defect detection, predictive maintenance, and real-time performance monitoring, reducing costs and boosting energy output. For instance, Vikram Solar uses AI-powered systems across its production lines to detect manufacturing defects and predict equipment failures, resulting in higher yields and consistent product quality. Similarly, AI-driven platforms at Tata Power Solar and Waaree Energies optimize solar farm performance, predict maintenance needs, and improve system efficiency, driving both operational savings and increased renewable energy generation.

Pricing Analysis: India Solar PV Module Market

India’s solar PV module prices range from ₹12-22 per watt, influenced by technology, brand, and procurement scale. Monocrystalline PERC modules dominate with ₹14-20 per watt, led by Vikram Solar (₹16.5-18.0/W) and Adani Solar (₹16.0-17.5/W). Polycrystalline modules serve price-sensitive segments at ₹12-16/W, with Luminous Solar and UTL Solar as key players. Bifacial modules command a premium ₹16-22/W due to higher energy yield, exemplified by LONGi Solar (₹17.5-20.5/W). Overall, government policies, global silicon pricing, and supply chain dynamics drive market fluctuations, while gradual price stabilization is observed across residential, commercial, and utility-scale installations.

Segmental Insights

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India Solar PV Module Market Insights, By Grid: Strong infrastructure drives dominance for On-Grid systems

In terms of grid type, the on-grid segment is projected to command the largest share of 79.6% in 2025, driven by the presence of established electricity infrastructure and ease of integration with national grids. On-grid systems allow consumers to directly draw from and feed excess power back into the grid, reducing reliance on costly battery storage. This makes them more cost-effective compared to off-grid alternatives, particularly in urban and semi-urban areas with reliable utility connections.

Government incentives such as net metering policies, along with lower installation costs due to the absence of storage requirements, further strengthen the adoption of on-grid systems. For instance, The Ministry of New and Renewable Energy (MNRE) offers subsidies for residential rooftop solar installations.Under the Grid-Connected Rooftop Solar Program, residential consumers can receive Central Financial Assistance (CFA) of up to 40% for systems up to 3 kW capacity, and 20% for systems between 3 kW and 10 kW.This reduces the initial investment, making solar energy more affordable for homeowners.

Additionally, growing commercial and industrial applications, where uninterrupted power supply and cost efficiency are critical, contribute to their market dominance. Continuous grid modernization initiatives and smart grid integration are expected to further enhance the penetration of on-grid systems over the forecast period.

India Solar PV Module Market Insights, By Type: Technological advantage boosts adoption for monocrystalline

In terms of type, monocrystalline segment is estimated to contribute the highest market share of 48.9% in 2025, owing to its technological superiority over other types. Monocrystalline modules use high purity silicon, which is grown as a single crystal ingot using the Czochralski process. This allows for maximum light absorption within a solar cell and higher conversion efficiencies as compared to polycrystalline and thin-film modules. The conversion efficiency of monocrystalline modules averages around 20%, while polycrystalline and thin-film modules are typically lower.

For instance, India's advancement in monocrystalline solar technology is Adani Solar's production of the country's first large-sized monocrystalline silicon ingot at its Mundra facility in Gujarat. This achievement marks a significant step in India's solar manufacturing capabilities, as the ingot serves as a foundational component for high-efficiency solar panels. The produced ingots are exclusively utilized in Adani Solar’s wafers, cells, and modules, aiming to enhance the performance and efficiency of solar energy systems.

The higher efficiency means monocrystalline panels can generate the same amount of power using less roof space. This makes them an attractive option for residential rooftops, where space is limited. The technology also witnesses improvements as manufacturers invest heavily in R&D to push efficiencies even higher. Factors like reduced manufacturing costs and higher durability have also boosted monocrystalline adoption over other alternatives in the market.

India Solar PV Module Market Insights, By End User: Residential sector dominates due to rooftop potential

In terms of end user, residential segment is estimated to contribute the highest market share of 52.7% in 2025, due to extensive rooftop potential across urban and suburban regions. India has a growing middle-class population with rising disposable incomes that seek to reduce their energy costs. Residential solar panels offer a cleaner and cost-effective substitute to traditional grid power. Implementation of India’s Basic Customs Duty (BCD) on imported solar modules has encouraged domestic manufacturers like Adani Solar and Waaree Energies to expand local rooftop solar panel production.

 For instance, new residential projects in states such as Maharashtra and Karnataka are increasingly sourcing locally-made panels to benefit from government incentives, ensuring cost-effective and compliant installations while reducing reliance on imported Chinese modules. As of June 2025, over 2.12 lakh households have installed rooftop solar systems, generating 812.76 megawatts of power. Nagpur district leads with 33,641 installations contributing 132.35 megawatts, accounting for over 16% of the state's total rooftop solar capacity.

Several state governments offer rebates, subsidies and tax incentives on capital invested in residential solar projects. Combined with falling prices of panels, this has made small-scale rooftop systems increasingly viable for homes and apartments. Various awareness initiatives by government organizations and solar companies have also boosted solar adoption among residential prosumers looking to play their part in energy security and climate change efforts.

India Solar PV Module Market Insights, By Application: Grid connected projects drive large scale adoption

In terms of application, grid-connected segment is estimated to contribute the highest market share of 46% in 2025, due to large scale commercial and utility applications. India has set ambitious renewable energy targets to reduce fossil fuel dependence and meet growing baseload power demands through sustainable means. Solar energy, as an indigenous and abundant resource, play a major role in achieving these targets through large commercial and utility-scale solar parks.

Several state-run utilities and independent power producers have been installing gigawatt-scale solar parks connected to the national grid under national programs. Joint ventures with global developers can transfer critical technology expertise to set up competitive solar manufacturing hubs within India as well. Streamlined approvals, open access to transmission infrastructure and long-term power purchase agreements with state discoms at preferential tariffs have accelerated the development of massive grid-connected projects across the country. Large commercial and industrial users are also increasingly setting up dedicated on-site solar capacity for self-consumption needs.

For instance, Central and state governments offer various subsidies and incentives for C&I rooftop solar installations, including capital subsidies, accelerated depreciation benefits, and net metering policies, making solar energy more financially attractive for businesses. Such as, Under the Grid-Connected Rooftop Solar Scheme (Phase-II), C&I consumers are eligible for a 40% capital subsidy for the first 3 kW and 20% for additional capacity up to 10 kW. These incentives are managed through local Electricity Distribution Companies (DISCOMs), which facilitate the process and ensure standardization and quality through empaneled vendors.

Market Report Scope

Market Driver - Government supportive policies and initiatives

Indian government focuses on accelerating the development of renewable energy sources. With growing concerns around energy security and environmental degradation caused by excessive dependence on fossil fuels, the leadership recognizes solar as a vital avenue to address the twin challenges of ensuring adequate power availability as well as reducing carbon footprint. Favorable policies and programs rolled out in the last few years have incentivized investments and enhanced uptake of solar power technologies.

Jawaharlal Nehru National Solar Mission was launched in 2010 with an ambitious goal of deploying 20 GW of grid-connected solar power by 2022. This provided the much-needed impetus to solar entrepreneurs and manufacturers to gear up and participate in this new sunrise sector. The target has been achieved well ahead of schedule and stands revised to 100 GW. Introduction of auctions or competitive bidding for large utility-scale projects can also drive the market growth. The e-reverse auction mechanism has significantly lowered the prices at which projects are awarded to developers, making solar energy more cost-competitive against conventional sources. Multiple states have followed this model to meet their renewable purchase obligations at economical tariffs.

The government is promoting rooftop solar schemes to encourage installations at the residential and commercial levels. Capital subsidies under the MNRE's rooftop program have stimulated small-scale adoption. Recently introduced provisions like net-metering further strengthen the business case for households and industrial/commercial establishments to install solar PV systems. Favorable policies such as accelerated depreciation, generation-based incentives, and tax exemptions increases the appeal of localization, and indigenous manufacturing of solar panels, and related components. The production linked incentive scheme is aimed at boosting domestic production capabilities.

The government's firm policy resolves and follow up actions have generated a thriving market ecosystem for solar PV modules and related products. Both the large-scale utility segments as well as the decentralized rooftop market segments witness high growth rates. The policy environment is conducive for sustained capacity expansions by developers and technology providers due to medium to long term government targets. Supportive policies and programs at central and state levels can drive the India solar PV module market growth.

Market Challenge - Intermittency nature of solar power

Intermittency nature of solar power can hamper the India solar PV module market growth. Being dependent on sunlight, solar PV modules can only generate power during daytime and the power output keeps fluctuating throughout the day based on availability of sunlight. This makes solar power unreliable to meet round-the-clock electricity demand of residential and industrial customers. The storage of solar power generated during daytime for usage at night still remains an expensive option. Finding cost-effective solutions for large-scale electricity storage will be crucial to address the intermittency challenge and allow higher penetration of solar power into the India's energy mix. Unless this issue is resolved, reliance on non-renewable sources like coal will continue for base load power requirements.

Market Opportunity: Off-grid and decentralized applications

Off-grid and decentralized renewable energy applications in India offer growth opportunities for the India solar PV module market growth. Large section of India's population still lacks access to reliable electricity supply from the grid. Several industrial and agricultural operations in rural areas also depend on diesel generators for meeting their energy needs. Rooftop and small-scale solar systems offer a viable solution to electrify off-grid villages and decentralized applications. These can help displace costly diesel usage and improve energy access for millions. This off-grid solar market is can witness growth in the near future due to various government initiatives. It can boost demand for domestically manufactured solar PV modules and components.

Analyst Viewpoint

• India solar PV module market growth is driven by declining cost of solar modules and supportive government policies promoting renewable energy usage. Government targets for installing 100GW of solar power capacity by 2022 also boosted module procurement. Residential rooftop segment is expected to witness highest growth due to rising roof top solar initiatives by various states.
• Interstate transmission issues and land acquisition challenges may slow down some large-scale projects. Finance availability can also pose challenges for small developers and residential consumers. Module price volatility and safeguard duties imposed by the U.S. have impacted domestic module suppliers. Southern states like Telangana, Karnataka and Andhra Pradesh have emerged as high growth markets due to early adoption. Punjab, Haryana and Rajasthan also offer significant opportunities due to their solar resource potential.
• Module imports, especially from China and Southeast Asian nations, have a sizeable share in fulfillment of demand. Domestic manufacturing push under production linked incentive schemes could enhance competitiveness over time. Rising module efficiency standards and wider availability of bifacial and other advanced technologies can boost replacement demand in the mid-term. With a favorable policy environment.

India Solar PV Module Industry News

• On January 2, 2025, PV Magazine India reported that India’s solar manufacturing landscape is rapidly evolving, with companies expanding into advanced technologies like TOPCon, HJT, and perovskite to meet both domestic demand and export opportunities.
• In December 2024, the Indian government mandated the use of locally manufactured solar cells and modules for clean energy projects starting June 2026, strengthening its import-substitution and domestic manufacturing push.
• On August 14, 2024, Vikram Solar launched the Suryava module, its first Hetero Junction Technology (HJT).
• In July 2024, the Ministry of New and Renewable Energy (MNRE) announced plans to expand the Approved List of Models and Manufacturers (ALMM) framework to ensure quality compliance and promote domestic players.

Market Segmentation

• By Type Insights (Revenue, USD Mn, 2025 - 2032)
  • Monocrystalline
  • Polycrystalline
  • Thin-Film
• By End User Insights (Revenue, USD Mn, 2025 - 2032)
  • Residential
  • Commercial
  • Utility-Scale
• By Application Insights (Revenue, USD Mn, 2025 - 2032)
  • Grid-Connected
  • Off-Grid
• Key Players Insights
  • Ece (India) Energies Pvt Ltd.
  • Icon Solar En-Power Technologies Pvt Ltd.
  • PV Power Technology Pvt Ltd.
  • Navitas Green Solutions Pvt. Ltd.
  • Adani Group

Sources

Primary Research Interviews

• Solar PV Module Manufacturers and Suppliers
• Solar Project Developers and EPC Contractors
• Government Officials from Ministry of New and Renewable Energy (MNRE)
• Solar Energy Consultants and Industry Experts
• Others

Databases

• Ministry of New and Renewable Energy (MNRE) Database
• Central Electricity Authority (CEA) Database
• International Energy Agency (IEA) Database
• Bloomberg New Energy Finance (BNEF) Database
• Others

Magazines

• Solar Power World India
• Renewable Energy World Magazine
• PV Magazine India
• Clean Energy Review
• Others

Journals

• Solar Energy Journal
• Renewable Energy Journal
• Energy Policy Journal
• Others

Newspapers

• The Economic Times
• Business Standard
• The Hindu Business Line
• Financial Express
• Others

Associations

• Solar Power Developers Association (SPDA)
• National Solar Energy Federation of India (NSEFI)
• Indian Solar Manufacturers Association (ISMA)
• Renewable Energy Producers Association of India (REPAI)
• Others

Public Domain Sources

• Ministry of New and Renewable Energy (MNRE) Official Website
• Central Electricity Authority (CEA) Reports
• India Energy Portal
• International Solar Alliance (ISA) Publications
• Others

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of Information for Last 8 Years

*Definition: India solar PV module market refers to the market for solar photovoltaic modules in India. As renewable energy generation emerges as a major focus area for the country, the demand for solar PV modules has been growing rapidly. Solar PV modules are a key component for setting up solar power plants and rooftop solar installations across industries, commercial establishments and households. Key players in India are manufacturing solar PV modules to cater to this growing domestic demand.