India Renewable Energy Market Report and Forecast 2032

India Renewable Energy Market Insights & Analysis

The India Renewable Energy Market is anticipated to register a CAGR of around 9.20% during the forecast period, i.e., 2025-32. Also, the market size was valued at nearly USD 47.7 billion in 2032. The industry is one of the most rapidly developing sectors in India primarily due to strong government policies, substantial technical developments, and increasing energy needs owing to the country's improving economy & upscaling population. In an effort to lower carbon emissions & lessen dependency on fossil fuels, India plans to install 500 GW of renewable energy capacity by 2030. Also, with significant investments, regulatory backing, and international cooperation, India is headed toward becoming one of the world's biggest markets for renewable energy. Solar, wind, biomass, and small hydropower make up India's more than 120 GW installed renewable energy capacity as of 2023. Along with this, by 2030, green energy is predicted to be responsible for around half of India's total power capacity, greatly lowering the country's reliance on coal and other fossil fuels.

The term "renewable energy" defines energy produced from naturally occurring sources, such as sunshine, wind, water, and biomass that are continuously renewed. In order to mitigate climate change, decrease greenhouse gas emissions, and move toward a low-carbon, sustainable future, it is essential. It assists in lowering reliance on limited fossil fuel supplies, which are volatile in price & harmful to the environment. Through the utilization of renewable resources, nations can improve energy security & encourage self-sufficiency in supplying their energy requirements. Moreover, traditional fossil fuels have a greater impact on the environment than renewable energy sources. Also, public health is improved & the negative effects of climate change are lessened as they don't release harmful pollutants into the atmosphere or make a substantial contribution to air pollution.

Furthermore, there have been notable developments in renewable energy technologies in recent years, which have reduced costs & improved efficiency. Due to this, renewable energy is now more competitive with fossil fuels, which has resulted to its broad adoption & deployment in a variety of industries, like heating, transportation, and electricity generating. Increasing government backing through the implementation of supporting policies is the primary driver of the Indian market. For example, the Rajasthan government & NTPC Green Energy signed a Memorandum of Understanding (MoU) in 2024 for around 28,500 MW of renewable energy-based projects. These projects are part of nearly 31,825 MW of electricity generation projects valued at about USD 19.18 billion. These programs have drawn funding & created an atmosphere that is conducive to the growth of renewable energy.

Additionally, the market is being greatly influenced by the declining expense of renewable energy technologies, especially wind & solar. Renewable energy is now more competitive with fossil fuels owing to the decreasing costs of wind turbines & solar photovoltaic modules. Besided, the need for renewable energy solutions has upscaled as a result of the Indian government's emphasis on expanding rural electrification and energy access. Also, decentralized renewable energy systems offer a viable & sustainable solution to these regions' energy demands, as they frequently lack dependable grid connectivity. Thus, in the upcoming years, renewable energy is foreseen to play a vital role in economic growth, job creation, and environmental sustainability as the India Renewable Energy Market develops and becomes a pillar of the country's energy policy.

India Renewable Energy Market Dynamics

• Growing Emphasis On Improving India’s Air Quality to Push the Market Expansion

The rising need for renewable energy in India is a result of greater emissions of greenhouse gases. Given to the country’s generous dependence on fossil fuels, air pollution & ecological degradation has been at distressing levels. The necessity of shifting to cleaner & more sustainable energy sources has become more widely accepted as a result of this. Further, to lessen greenhouse gas emissions & combat climate change, renewable energy presents a practical option.

Moreover, when producing electricity by utilizing renewable resources, such as solar, wind, and hydropower, CO2 emissions are considerably reduced, compared to conventional fossil fuel-based power generation. Thus, the deployment of renewable energy is therefore strongly encouraged in India in an effort to lower carbon emissions & enhance air quality. This, in turn. Contributes in driving the India Renewable Energy Market in the future years as well.

• Intermittency & Energy Storage Concerns to Hamper the Industry Progression

Due to their dependence on time & weather, wind & solar power generation generates intermittent output that, if inappropriately managed, might cause system instability. For example, wind power fluctuates as per the weather, whereas solar power generation reduces at night. The concern is exacerbated by the absence of effective & reasonably priced energy storage options. Furthermore, in India, pumped hydro storage, large-scale battery storage, and other technologies are still costly and in their early stages of development. Also, the sustainability objectives of the renewable energy market are undermined when there are insufficient storage solutions available, increasing the need for backup power from traditional sources like coal, further creating a challenge for the India Renewable Energy Market.

India Renewable Energy Market Segment-wise Analysis

By Type:

• Hydroelectric Power
• Solar Energy
• Wind Power
• Bioenergy
• Other

The national market is dominated by Solar Energy and is foreseen to capture the largest market share during 2025-32. India is a prime location for solar energy generation as it receives an abundance of sunlight all year round. The country’s massive solar potential could be utilized to provide its expanding energy requirements. Additionally, substantial spending on solar power projects have been drawn by the plenty of sunlight, which has caused the Solar Energy Market to expand rapidly.

Moreover, the expense of solar energy is becoming more economical with traditional electricity sources in line with the decreasing costs of solar photovoltaic (PV) technology. Also, enhancements in PV technology, incentives from the government, and reducing solar panel costs have made solar energy an opportunistic segment for utility-scale & distributed generation projects.

By End User:

• Residential
• Commercial
• Industrial
• Others

The Industrial sector is envisioned to uphold the largest share of the India Renewable Energy Industry. Owing to the high energy requirements, industrial facilities are regarded as the substantial electricity users across the country. The market companies could diminish their reliance on traditional fossil fuel-based energy & their carbon footprint by using renewable energy sources, such as solar, wind, biomass, or hydropower.

Additionally, to promote the industrial sector's adoption of renewable energy, the Indian government has also implemented numerous laws & incentives. These consist of financial incentives, tax advantages, and renewable purchase obligations (RPOs). Also, demand for the usage of renewable energy is further upsurged by RPOs, which mandate that enterprises obtain a specific proportion of their energy from renewable sources.

What Does Our India Renewable Energy Market Research Study Entail?

• India Renewable Energy Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• India Renewable Energy Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.