As per MRFR analysis, the India Off-Grid Solar Market Size was estimated at 245 (USD Million) in 2023. The India Off-Grid Solar Market is expected to grow from 400(USD Million) in 2024 to 1,200 (USD Million) by 2035. The India Off-Grid Solar Market CAGR (growth rate) is expected to be around 10.503% during the forecast period (2025 - 2035).
The India Off-Grid Solar Market is experiencing significant growth driven by several key market drivers. Increasing electricity demand in rural areas, where many households remain unconnected to the grid, is pushing for affordable and sustainable energy solutions. The government's initiatives to promote solar energy, such as the Solar Mission and various subsidy programs, are also enhancing accessibility and affordability of off-grid solar systems. Furthermore, the declining costs of solar technology make it a viable alternative for energy access in remote regions.
Opportunities to be explored include the integration of new technologies like solar water pumps and solar lanterns, which are particularly beneficial in agricultural sectors and remote villages.The potential for mini-grids powered by solar energy is another avenue, facilitating community-level energy solutions and improving livelihoods. The focus on rural electrification is increasing, and off-grid solar solutions align well with the country’s renewable energy goals. Trends in recent times show a rise in public-private partnerships that facilitate the installation of off-grid solar systems.
Companies are increasingly focusing on providing innovative financing solutions, making it easier for consumers to adopt solar technology. Awareness about clean energy and the environmental benefits of solar power is also growing, encouraging communities to transition from traditional energy sources.The collective shift towards decentralized energy solutions enhances energy security and promotes sustainable economic development in India.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Growing Energy Demand in Rural Areas
India has a significant rural population, with approximately 65% of its population living in rural areas, according to the 2011 Census data. The demand for energy in these regions is continuously increasing due to agricultural activities, small businesses, and household needs. The Government of India has committed to providing electricity access to all by implementing programs such as Saubhagya, aiming for 100% electrification. As a result, the India Off-Grid Solar Market is positioned for growth, contributing to the government's goal of ensuring sustainable energy access.Furthermore, the implementation of initiatives like the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) has demonstrated that renewable energy solutions can significantly reduce the reliance on conventional energy sources, highlighting the growing adoption of off-grid solar solutions in rural India.
Cost-Effectiveness of Solar Energy Solutions
The cost of solar photovoltaic systems has decreased significantly over the past decade, making solar energy an economically viable option for off-grid applications. For example, the International Energy Agency has reported that the costs of solar photovoltaic (PV) panels have decreased by over 80% since 2010. With this remarkable reduction in prices, many households and businesses in India are turning to off-grid solar solutions as a primary energy source, particularly in regions where grid connectivity is limited.The India Off-Grid Solar Market is benefiting from this trend, as local manufacturers and service providers can now offer competitive pricing while ensuring quality and accessibility in the market.
Government Incentives and Policy Support
The Indian government has implemented several policies and incentives to promote the adoption of solar energy. The National Solar Mission aims to achieve 100 GW of solar power capacity by 2022, with extensive support for off-grid solar projects. Additionally, recent initiatives like the Solar Rooftop Scheme facilitate financial assistance for households to install solar panels. According to the Ministry of New and Renewable Energy, the off-grid solar power capacity has grown significantly in recent years, reaching approximately 1.7 GW as of 2021.These governmental efforts strengthen the India Off-Grid Solar Market by providing necessary frameworks and support for both users and businesses in the sector.
Rising Environmental Concerns and Energy Transition
As climate change becomes a pressing global issue, there is an increasing emphasis on using renewable energy sources to mitigate environmental impacts. The Indian government has acknowledged this need by committing to reduce the carbon footprint by 33-35% from 2005 levels by 2030. This has resulted in a significant push towards renewable energy, which includes off-grid solar solutions. According to the India Renewable Energy Status Report, renewable energy sources, particularly solar energy, are leading the transition towards cleaner energy.This focus on sustainable practices drives the India Off-Grid Solar Market, encouraging businesses and consumers alike to invest in cleaner energy alternatives to satisfy their energy requirements.
The India Off-Grid Solar Market highlights a robust growth trajectory underscored by diverse Type segments, namely Solar Panel, Battery, Controller, Inverter, and others, which contribute to a multifaceted energy solution. Solar panels are pivotal as they harness sunlight, transforming it into electricity, making them integral to the energy landscape in rural and remote areas across India where access to grid power remains limited. The Indian government has initiated various schemes to promote solar energy, enhancing the installation of these panels, particularly in states abundant in sunlight. The solar panel segment is characterized by significant technological advancements, with increasing efficiency rates and declining costs, further catalyzing adoption among consumers.
Batteries are another crucial component of the Off-Grid Solar Market, serving as storage solutions that enable energy availability during non-sunny periods, thereby ensuring a consistent power supply. This is particularly vital in India, where power outages are commonplace, and battery technology continues to evolve with innovations aimed at improving longevity and reducing costs for consumers. The battery segment supports the broader goal of energy independence and self-sufficiency, which is essential for rural electrification initiatives.
Controllers play an essential role in regulating the flow of electricity from the solar panels to the batteries and then to the electrical loads. They ensure the system operates efficiently and safely, protecting components from damage due to overcharging or deep discharging. This segment enhances system reliability, contributing to overall energy efficiency and sustainability, which aligns with India’s commitments towards clean energy sources and climate goals.
Inverters are equally significant as they convert the direct current (DC) generated by solar panels into alternating current (AC), which is suitable for household appliances. With the increasing number of solar installations, the inverter segment is also witnessing advancements, including the introduction of smart inverters that offer enhanced monitoring and control capabilities. This technology enables consumers to manage their energy consumption more effectively, which is becoming increasingly relevant with the growth of the decentralized energy market in India.
Finally, the 'others' category includes Off-Grid Solar Market-supporting technologies and solutions. This may include solar power installation and maintenance mounting structures, connectors, and monitoring systems. The Off-Grid Solar Market is becoming more complex and diverse as solar technology components are better understood.
Overall, the India Off-Grid Solar Market segmentation shows a comprehensive ecosystem where each type is crucial to sustainable energy solutions. Favorable government policies, rising public awareness, and a push for energy independence are driving market growth, integrating innovative technologies to improve energy access and reliability in underserved Indian regions. The shift toward renewable energy and changing energy consumption patterns offer opportunities for growth in each of these segments, making them vital to India's future energy landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Application segment of the India Off-Grid Solar Market plays a crucial role in addressing the country's growing energy needs, particularly in areas lacking reliable grid access. The market consists of various domains such as Residential, Non-Residential, and Others, each contributing to the broader landscape of solar energy adoption. Residential applications are vital, catering to households that seek sustainable energy solutions, ultimately enhancing energy security and independence. Non-Residential applications encompass commercial enterprises, educational institutions, and healthcare facilities, driving demand for efficient off-grid solar solutions that can reduce operational costs.
Additionally, the Others category includes industrial setups and agricultural uses, indicating a growing trend toward solar adoption across diverse sectors. The Indian government’s initiatives to promote renewable energy usage through subsidies and financial incentives have further bolstered the growth in this market landscape. Enhanced awareness of the environmental benefits and long-term cost savings is driving this market's expansion. Overall, these dynamics suggest a promising outlook for the India Off-Grid Solar Market as it adapts to various application needs, fostering a cleaner and more sustainable energy future for the country.
The India Off-Grid Solar Market has witnessed substantial growth and evolving dynamics in recent years due to the rising demand for sustainable energy solutions, particularly in rural and under-electrified regions. With abundant sunlight all year round, the potential for solar energy is enormous, and numerous players have entered the market to capitalize on this opportunity. The competitive landscape consists of both established corporations and new entrants, each striving to introduce innovative products and services that cater to the unique energy needs of various demographics. Factors such as regulatory support, financial incentives, technological advancements, and partnerships with local communities contribute to the competitive environment.
Furthermore, companies are increasingly focusing on not just product offerings but also on customer engagement and the overall ecosystem for off-grid solar solutions.Renew Power has positioned itself strongly in the India Off-Grid Solar Market with a robust portfolio that emphasizes sustainability and social impact. The company has established itself as a formidable player due to its extensive project experience and its focus on delivering quality solutions that cater to both urban and rural settings. Its strengths lie in a well-established supply chain and a commitment to innovative technology, which allows for efficient energy generation and management.
The company's significant investments in research and development further enhance its competitive edge, fostering the creation of tailored solutions that meet regional energy demands. Renew Power’s extensive partnerships with local governments and NGOs enhance its market penetration and credibility, establishing a solid presence in the off-grid solar segment.Sunkalp Renewable Solutions stands out in the India Off-Grid Solar Market as a notable provider of solar energy solutions with a focus on bringing accessible and affordable power to underserved regions.
The company offers a diverse array of products, including solar home systems, mini-grids, and solar water pumping solutions, designed specifically for rural applications. Sunkalp has built a reputation for its customer-centric approach and ability to deliver reliable installations in challenging environments. In terms of market presence, the company is recognized for its strong collaborations with local communities and extension of financing options that facilitate energy access.
Furthermore, Sunkalp has pursued strategic partnerships and collaborations to enhance its service offerings, ensuring scalability and sustainability. These alignments follow their vision of expanding the solar landscape in India, showcasing the company's prowess in navigating the complex dynamics of the off-grid solar market while remaining devoted to innovative solutions that address energy poverty effectively.
The India Off-Grid Solar Market has seen significant developments recently, with various companies like Renew Power and Tata Power Solar enhancing their product offerings. In October 2023, Selco India launched an innovative financing scheme aimed at making solar solutions more accessible to rural communities. Greenlight Planet has reported steady growth, emphasizing the increasing consumer interest in solar home systems. In terms of mergers and acquisitions, Simpa Networks was acquired by a prominent investor in September 2023, a move that is expected to bolster its operations in off-grid solar energy solutions.
Additionally, Mahindra Susten announced investments in technology to enhance energy efficiency in its solar installations. As of 2022, the market size for India's off-grid solar sector was estimated at USD 1.5 billion, illustrating a growth trend supported by government initiatives to increase renewable energy adoption. Companies like Loom Solar and Amplus Solar are also ramping up efforts to capture a larger market share by targeting underserved regions across the country. The focus remains on sustainable energy solutions amidst rising energy demands, aligning with India's commitment to achieving 500 GW of renewable energy capacity by 2030.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 245.0 (USD Million) |
| MARKET SIZE 2024 | 400.0 (USD Million) |
| MARKET SIZE 2035 | 1200.0 (USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 10.503% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Renew Power, Sunkalp Renewable Solutions, Selco India, Greenlight Planet, Solarify, Tata Power Solar, Adani Solar, Vizor Solar, Loom Solar, Nexleaf Analytics, Simpa Networks, Oorjan Cleantech, Mahindra Susten, Himadri Power and Steel, Amplus Solar |
| SEGMENTS COVERED | Type, Application |
| KEY MARKET OPPORTUNITIES | Rural electrification projects, Affordable solar home systems, Solar water pumping solutions, Mini-grid development initiatives, Innovative financing models. |
| KEY MARKET DYNAMICS | Rising energy demand, Government incentives, Technological advancements, Rural electrification initiatives, Cost reduction in solar technology |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Off-Grid Solar Market is expected to be valued at 400 million USD in 2024.
By 2035, the market is projected to reach a value of 1200 million USD.
The market is anticipated to grow at a CAGR of 10.503 percent during the forecast period from 2025 to 2035.
The solar panel segment is expected to dominate the market with a value of 160 million USD in 2024.
The battery segment is projected to reach a market value of 300 million USD by 2035.
Key players in the market include Renew Power, Sunkalp Renewable Solutions, Selco India, and Tata Power Solar among others.
The inverter segment is forecasted to be valued at 210 million USD in 2035.
The controller segment is expected to have a market value of 40 million USD in 2024.
Emerging trends include increased energy demand and a push for renewable energy solutions, providing significant growth opportunities.
Challenges may include regulatory hurdles and competition from alternative energy sources as the market evolves.
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