India Renewable Energy Market to Grow at Over 10% CAGR by 2029, Driven by Solar and Policy Support

Mordor Intelligence has published a new report on the India Renewable Energy Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

India's renewable energy sector has seen considerable growth in recent years, anchored by robust government support, increasing demand for clean electricity, and falling costs of renewable technologies. According to the Mordor Intelligence report, the India Renewable Energy Market is projected to grow at a compound annual growth rate (CAGR) of over 10% during the forecast period from 2024 to 2029. The market includes technologies such as solar, wind, hydro, and bioenergy, all contributing to the country's decarbonization goals.

The government has implemented a range of supportive schemes such as the National Solar Mission, solar parks, viability gap funding (VGF), and production-linked incentives to boost renewable energy installations. With these initiatives, India continues to move steadily toward its ambitious clean energy targets.

Report Overview: https://www.mordorintelligence.com/industry-reports/india-renewable-energy-market?utm_source=openpr

Key Trends

Strong Push from Government Policies and Incentives

The Indian government has consistently promoted renewable energy through central initiatives. The Ministry of New and Renewable Energy (MNRE) has introduced schemes, including the National Solar Mission, Grid-Connected Rooftop Solar Program, and solar parks, to scale up deployment. Financial support in the form of VGF schemes and defense-specific solar projects has also played a role.

To enhance domestic solar manufacturing, the government launched a Production Linked Incentive (PLI) scheme in February 2022 with an allocation of INR 19,500 crore. This is aimed at encouraging integrated manufacturing of high-efficiency solar PV modules in India. Such measures are instrumental in supporting capacity expansion and reducing reliance on imports.

Solar Energy Remains the Largest Segment

Solar power has emerged as the leading contributor to India's renewable energy mix. In the financial year 2020-2021, the installed utility-scale solar capacity reached 40.1 GW, a 16% increase from 34.6 GW in 2019-2020. With ongoing cost reductions, solar PV remains attractive due to its scalability and wide range of applications, including electricity generation and solar water heating.

India has also made strides in rooftop solar deployment. Under the Grid-Connected Rooftop Solar Scheme Phase II, the government set a target of achieving 40 GW of rooftop solar capacity by 2022, inviting expressions of interest from stakeholders. While the target has not yet been fully met, it indicates the level of intent and policy backing for decentralized solar generation.

Private Sector Participation and Competitive Tariffs

Private developers have significantly contributed to project execution and capacity growth. For instance, Azure Power developed a 600 MW solar project in Bikaner, Rajasthan, at a tariff of around USD 0.03 per kWh, showcasing the competitiveness of solar energy in India. This trend of competitive bidding is pushing down prices while increasing capacity additions.

Large-scale solar parks and open-access solar plants remain crucial components of India's utility-scale renewable landscape. Declining module costs, policy stability, and improved project economics are encouraging continued investments from both domestic and international developers.

Market Segmentation

Solar Energy:

The largest and fastest-growing segment.

Installed capacity rose from 34.6 GW in FY 2019-20 to 40.1 GW in FY 2020-21.

Includes both utility-scale and rooftop solar projects.

Wind Energy:

While not separately quantified in the report, it remains a core part of India's clean energy mix.

Hydro and Bioenergy:

Also included in the broader renewable energy portfolio, often complementing solar and wind power.

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Key Players

The report identifies several major companies operating in India's renewable energy space, contributing significantly to the country's generation capacity:

Tata Power Company Limited

NTPC Limited

Suzlon Energy Limited

Vestas Wind Systems AS

Siemens Gamesa Renewable Energy SA

These companies have a strong presence in various renewable technologies, including solar and wind. Tata Power and NTPC are leading public and private sector players, while Suzlon, Vestas, and Siemens Gamesa have long-standing expertise in wind energy development.

In addition to project development, these companies are involved in manufacturing, operations and maintenance (O&M), and grid integration services. Their active participation helps ensure the technical and financial sustainability of India's renewable sector.

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Conclusion

India's renewable energy market is expanding rapidly, with solar power taking a central role due to its adaptability, cost-effectiveness, and policy support. Government initiatives, such as the PLI scheme and solar park development, continue to encourage investment across the sector. Utility-scale and rooftop installations are both seeing uptake as India balances centralized generation with decentralized access.

With an expected CAGR of over 10% through 2029, the market shows strong long-term potential. The presence of key public and private companies, together with a wide array of central schemes, provides a solid foundation for sustained growth across solar, wind, and other renewable technologies.

As India moves toward meeting its clean energy targets, the alignment of policy, finance, and technology will remain central to achieving its long-term sustainability goals.

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This release was published on openPR.