In recent years, India has impressively risen to become one of the most important solar markets worldwide. According to the Global Market Outlook for Solar Power 2025–2029, the country saw a record deployment of around 30.7 gigawatts (GW) of solar capacity in 2024 – an increase of 145 percent. This elevates India to third place in the global PV ranking, behind China and the USA. This growth is driven by ambitious public incentive programs, which also cover PV production. India’s position within the global Sunbelt may also be strategically favorable, enabling the development of an electricity system powered entirely by renewable energy, offering an affordable power mix. Consequently, the developing country’s significance for the global solar market is impossible to ignore.
In February 2025, India’s solar capacity stood at 102.6 GW. At the time, another 84.1 GW were under construction and an additional 47.5 GW were up for tender, making the pipeline total almost 232 GW. Utility-scale installations dominate the market with just under 79 GW, while roof-top solar systems account for 16 GW at present. India’s total installed renewable energy capacity is around 167 GW, 61 percent of which comes from solar energy.
Driven by urbanization, industrialization and population growth, India’s energy appetite is growing rapidly. In pursuit of climate neutrality by 2070, the country is placing its strongest bet on solar energy. By 2029, India’s PV capacity is projected to have grown to between 275 and 310 GW. In high-growth scenarios, capacity could even reach 320 GW by 2030 — a 2.5 times expansion in only five years. A model generated by the Energy Transitions Commission shows a possible long-term scenario: an electricity system which, based on the high availability of renewable sources of energy, consisting of 80 percent solar and 20 percent wind. In this scenario, the annual electricity generation would be 7,300 TWh in 2050, which would easily cover the expected demand of 5,500 TWh.
Along with the expansion of its domestic solar energy generation capacity, India is positioning itself globally as a key PV production hub. In 2024, the annual module production capacity was already at 60 GW and is expected to grow to 100 GW by 2030. India is thus emerging as a challenger to China’s current dominance in global PV production. The Production Linked Incentive (PLI) scheme, which has been funding the establishment of Indian PV production with a total of around 2.5 billion euros since 2021, is a central driver for the expansion and gives domestic value creation a boost.
To continue the expansion of solar energy, the Indian government is employing a whole package of measures:
In addition, an incentive scheme for storage systems to promote the needs-based provision of electricity is being implemented.
India offers a unique environment for international companies and investors:
India is well on the way to becoming one of the world’s largest solar markets – and more than that, it is also consolidating its position as a production hub for PV technology. This opens up various business opportunities for the solar industry – from project development and partnerships to investment in industry. By joining the Indian market now, investors can secure early access to one of the most dynamic growth markets within the global energy transition.
You were unable to attend the event or missed a session? No problem! Most of the presentations are available for you on The smarter E Digital.
