India Solar Rooftop Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

India Solar Rooftop Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The Indian rooftop solar market is expected to record a CAGR of more than 15% over the forecast period. The Indian rooftop solar market was mainly unaffected by the COVID-19 pandemic and even witnessed growth during 2020. Key Highlights Over the long term, factors such as rising environmental concerns, favorable government policies, incentives and tax benefits for solar panel installation, and the high cost of grid expansion, especially in rural areas, are expected to be significant drivers for the market. On the other hand, a lack of general awareness will likely restrain the growth of the Indian rooftop solar market over the coming years. Nevertheless, the decentralization of electricity due to rooftop solar generation would enable residential & industrial customers to rely less on central grids, which is seen as an opportunity during the forecast period.India Rooftop Solar Market TrendsIndustrial Sector to Dominate the Market The cumulative rooftop solar capacity across all segments of consumers stood at 11GW in December 2021, as per Insitute for Energy Economics and Financial Analysis (IEEFA). Due to the rise of industrial activity in India, industry power demand will increase. As a result, rooftop solar installations would provide a robust option for enterprises to become self-reliant, which is expected to increase the rooftop solar market in India. The states such as Gujarat, Haryana, and Maharashtra exhibits attractiveness for rooftop solar installations as these states offer feasible policies for net metering and easy subsidy-related process. This would facilitate rooftop solar installation by consumers of the Industrial segment in a more accessible manner. The installed solar PV energy capacity in 2021 was 49.34 GW, an increase of 26.3% from the previous year. It is expected to increase further owing to the rise in rooftop solar installations by various states in the coming months. Due to lower Levelized tariffs of solar energy than grid-based tariffs in India, industrial consumers opt to consume electricity at a more competitive cost. Other factors, such as generation-based incentives, third-party power sale mechanisms, and preferential tariffs, as facilitated by the government, would enable the expansion of the rooftop solar market. In January 2023, the Delhi government announced diving into the community solar rooftops. It would allow companies and organizations to generate electricity without access to rooftop space. Further, Rajasthan Electronics and Instruments (REIL), a joint venture of the Rajasthan & Union governments, invited bids to commission 50MW of grid-connected rooftop & small ground-mounted solar, which occurs an opportunity for industries in India to install rooftop projects. Considering the above trends, the industrial segment will likely dominate the rooftop solar market in India.Increasing Demand for Clean Energy to Drive the Market India usually holds a massive electricity demand due to its rapidly growing economy. The country is committed to achieving its sustainable development goals, envisaging incorporating a large share of renewable energy resources to generate electricity. In recent years, electricity generation from renewable energy has seen a manifold increase. As per Central Electricity Authority (CEA), in FY 2021-2022, renewable energy generation reached 170.91 Billion Units (BU), a 16% increase from FY 2020-21, almost two times more since FY 2014-2015. Indian government pledged to achieve net-zero emissions by 2070 in COP26, and the purview of it net 50% of the cumulative power capacity would consist of electricity generation from non-fossil fuel-based sources by 2030. It provides immense potential for the rooftop solar market in India. In October 2022, TATA Power announced it to set up a 1000MW rooftop solar project in Rajasthan in the next five years. Similarly, in association with Union Bank, TATA Power announced installing rooftop solar to help the Micro, Small & Medium Enterprises (MSME) sector from the stress of higher power costs and grid exigencies. In the same year, Uttar Pradesh Government planned to develop rooftop solar projects on government & semi-government buildings & offices. Technological advancements also provide an edge to the rooftop solar market as high-wattage modules, and integrated battery energy storage have enhanced electricity generation. India's rooftop solar market would likely expand with an adequate number and variety of high-quality rooftop solar offerings. Hence, due to clean energy programmes, targets and rooftop solar projects in pipeline, India's rooftop solar market is likely to expand in upcoming yearsIndia Rooftop Solar Industry Overview The Indian rooftop solar market is fragmented. Some key players in this market (in no particular order) include Fourth Partner Energy Pvt. Ltd, Amplus Solar Power Pvt. Ltd, Tata Power Solar Systems Limited, Orb Energy, and Adani Solar, among others.Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support