India’s solar energy sector is witnessing rapid transformation, driven by the nation’s ambitious renewable energy targets and rising demand across utility, commercial, and residential segments. As the market expands, locally manufactured solar components are gaining prominence over imports, offering strategic, economic, and environmental advantages.
Market Overview
The Indian solar energy market generated approximately USD 10.4 billion in revenue in 2023 and is projected to grow at a CAGR of 13.4%, reaching around USD 24.9 billion by 2030. Solar photovoltaic (PV) technology constitutes roughly 75% of the market, with industrial applications driving demand due to large-scale installations and government incentives. High-efficiency modules, inverters, mounting structures, and Balance of System (BOS) components are critical for manufacturers seeking to capitalize on this growth. Local production strengthens the supply chain, stabilizes costs, and reduces dependency on imports.
Key Solar Component Trends
Solar Glass: India’s solar glass market is projected to grow from 512.3 thousand tons in 2024 to nearly 990.5 thousand tons by 2033 (CAGR 7.6%). Growth is driven by utility-scale installations, bifacial and glass-to-glass modules, and government policies favoring localization. Imports of PV glass have surged, with a CAGR of over 51% from 2020-2024, highlighting the need for domestic production.
Solar Encapsulants: The market is expected to grow from USD 227.25 million in FY2025 to USD 494.26 million by FY2033 (CAGR 10.2%). EVA remains dominant, while new materials like POE and TPU are emerging to enhance module durability and performance.
Solar Backsheets: Globally valued at USD 2.4 billion in 2024, the market is projected to reach USD 4.5 billion by 2033 (CAGR 6.9%). Demand in India is fueled by utility-scale farms, rooftop installations, and advanced module designs requiring premium backsheets for protection against UV, moisture, thermal cycling, and mechanical stress.
Why Local Sourcing Matters
Supply Chain Resilience: Domestic manufacturing reduces exposure to global logistics disruptions, shipping delays, and border closures.
Stable Pricing: Local sourcing mitigates the effects of ocean freight charges, currency fluctuations, and trade policies.
Economic Growth & Employment: Expanding domestic production generates skilled and unskilled jobs in manufacturing, R&D, installation, and maintenance.
Alignment with Atmanirbhar Bharat: Supporting local industry strengthens self-reliance, technological innovation, and India’s role in the global renewable energy value chain.
Environmental Benefits: Reduced imports lower the carbon footprint associated with logistics and accelerate India’s clean energy transition.
Domestic Leaders Driving Change
Companies like Vishakha Renewables exemplify India’s potential in high-performance solar materials. Specializing in solar glass, backsheets, encapsulants, and other components, the company provides reliable supply, technological innovation, and large-volume production to support developers, EPC firms, and module manufacturers.
India’s solar industry is evolving rapidly, with domestic manufacturing emerging as a cornerstone of sustainable growth. Local sourcing ensures higher quality, shorter lead times, and price stability, while reducing dependence on imports and advancing the nation’s renewable energy goals. With companies like Vishakha Renewables leading the charge, India is positioning itself as a global hub for world-class solar components.
