Solar Energy in India: Overview, Market Size, and Future Goals

[edit] Introduction

The Indian renewable energy sector is the 4th most attractive and fastest-growing market in the world. In the year 2020, India was ranked 4th in renewable power installed capacity. Over the past few years, the installed renewable power generation capacity of the country has registered a remarkable growth - posting a CAGR of 17.33% between the financial years 2016-2020.

[edit] Renewable energy set to play an important role

The government of India has also taken various initiatives to provide a boost to this sector. As the country is looking forward to meeting energy needs on its own, the sector has become very attractive from the perspective of investors. By the year 2040, India's energy needs are going to touch the mark of 15,820 TWh. Under this scenario, the role of renewable energy is going to be crucial.

By the end of the year 2022, the government is aiming to achieve the following:

• 227 GW of renewable energy capacity
• 114 GW of solar capacity addition, and
• 67 GW of wind power capacity

The government also intends to establish a renewable energy capacity of 523 GW (including 73 GW from Hydro) by the end of the year 2030.

[edit] Market size

The renewable energy capacity of India stood at 1.49 GW as of October 2021. This represents the overall installed power capacity (38.27%). The country also registered a growing renewable energy capacity which increased by 1,522.35 MW by the end of October 2021. Some of the other factors related to the market size include:

• As of September 2021, India’s renewable energy capacity was 101.53 GW.
• By the end of 2030, the country is aiming to achieve about 450 Gigawatt (GW) capacity.
• The country will be achieving around 280 GW (over 60%) from solar power.
• Power generation from renewable energy sources in India achieved the mark of 127.01 billion units (BU) in the financial year 2020.
• Northern India is going to become the hub for renewable energy in the country with a capacity of 363 GW.

The Central Electricity Authority says that the country's power requirements by the end of 2030 are going to be 817 GW. And solar energy will be the prime source of more than 280GW energy. To achieve this, the country needs more of solar energy capacity.

[edit] Concluding remarks

India is the fastest-growing economy in the world. Over the past 10 years, the country has seen:

• Economic growth.
• Increasing prosperity.
• A growing rate of urbanisation.
• Rising per capita energy consumption.
• A fast-changing lifestyle.

All these have contribute to the increasing energy demands across the country. Up to November 2021, the country installed a total of 150 GW renewable energy plants, this is attracting both solar PV investors and solar energy investors from across the globe.

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