The India residential solar inverter market size is anticipated to expand with a year-on-year growth of 7.9% in 2023. It is projected to reach a valuation of about USD 148.2 million by 2023.
The market is likely to cross a valuation of USD 330.2 million by 2033. It is expected to witness considerable growth at a CAGR of 8.3% from 2023 to 2033. The market stood at USD 137.3 million in 2022.
As part of the push toward renewable energy, national and state governments have provided subsidies for those who choose solar power. These include capital rewards and allowances that are applicable on consumers’ electricity bills.
Along with subsidies, the India market has witnessed a growing need for cost savings on electricity bills. It is further expected to boost the market for solar solutions, ultimately creating an exponential demand for solar inverters across the country.
With increasingly rapid advancements in the field of technology, several people have switched to renewable energy solutions. The solar energy system market in India has witnessed significant growth in recent years.
The industry has also showcased prominent price reduction in solar inverters due to several factors. On-grid solar systems aid in electricity bill reduction, maintenance cost reduction, and reduction in long-term operating costs for consumers.
Most of the consumers in India are opting for medium-capacity solar inverters with a maximum output of 6 kW. They are doing so in an effort to acquire high performance and energy efficiency for their homes.
Homes in the country use less than 100 energy units a month on an average. Since most single-family homes only need a small amount of electricity, solar energy systems with inverters under 6 kW are sufficient.
West India is projected to hold a substantial market share in the industry, according to Future Market Insights (FMI). South and North India, on the other hand, are anticipated to generate futuristic chances with high growth rates. West India is projected to generate around 7/10th of the value share in India residential solar inverter industry.
| Attributes | Key Insights |
|---|---|
| India Residential Solar Inverter Market Estimated Size (2023E) | USD 148.2 million |
| Projected Market Valuation (2033F) | USD 330.2 million |
| Value-based CAGR (2023 to 2033) | 8.3% |
| Collective Value Share: Top 3 Regions (2023E) | 98.0% |
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India residential solar inverter market witnessed moderate growth at a CAGR of about 2.0% between 2018 and 2022. With growing population, increased electrification, and high electricity consumption per person, the market has continued to be a prominent consumer of electricity.
Total electricity consumption in 2022 was around 1,490.3 billing units. It is projected to continue to rise as a result of ongoing population growth and government investments in the power industry.
India's need for electricity is developing quickly. It is predicted that over the next ten years, a significant expansion of power capacity would take place in order to satisfy this rising demand.
The power sector is also witnessing significant investments and developments, particularly in renewable energy sources such as solar and wind. It is expected to drive up demand for solar systems across industries and open up lucrative opportunities for solar inverter manufacturers.
According to Future Market Insights (FMI), the market is expected to flourish with 8.3% CAGR through 2033. The India residential solar inverter industry is further projected to expand by 2.2x in 2033, as compared to 2023.
Strict Government Policies in West India to Push Adoption of Solar Inverter Systems
West India is projected to contribute to about 3/5th of the total market value share by 2033. States in the region, namely, Goa, Maharashtra, Gujarat, and Rajasthan are set to showcase astonishing residential solar inverter demand in the next ten years.
Rising awareness of solar energy, as well as several government policies and promotional activities in the region would propel demand. Hence, West India market is expected to elevate steadily over the forecast period and hold its dominance.
High Cost of Electricity in South India to Augment Demand for Solar Inverters for Home
In South India, states such as Andhra Pradesh, Tamil Nadu, Karnataka, and Kerala are predicted to reign supreme through 2033. South India has a tropical climate with plenty of sunshine throughout the year.
This makes it an ideal region for harnessing solar energy. Hence, several homeowners are taking advantage of this by installing solar panels and inverters to generate their electricity.
Cost of electricity in South India has also been rising steadily in recent years. This has further led homeowners to look for alternative energy sources such as solar power, which can help them reduce their electricity bills.
Rising Cases of Power Cuts in East India to Propel Sales of Photovoltaic Inverters
East India, particularly the states of West Bengal, Bihar, and Jharkhand, has been experiencing a significant increase in terms of electricity demand in recent years. This has led to frequent power cuts and load shedding, making homeowners increasingly reliant on alternative sources of energy such as solar power.
The government of India has also introduced several incentives to promote solar power in the region. These include subsidies and tax breaks for homeowners who install solar panels and inverters. This has made it more affordable for homeowners to invest in solar power.
East India has a vast expanse of unused and underutilized land, making it easier for homeowners to install large-scale solar power systems. This has led to an increasing number of solar power plants and residential solar installations in the region.
Demand for On-grid Solar Panel with Inverter to Skyrocket in India by 2033
By product type, on-grid inverter is set to be a dominant segment in the India residential solar inverter industry. It is estimated to hold about 85% of the market value share in 2023.
Demand from the residential sector is anticipated to boost as a result of rising awareness and stringent government policies. The aforementioned factors are estimated to fuel demand for on-grid inverters in India over the forecast period. The segment is expected to create an absolute dollar opportunity of USD 135.7 million between 2023 and 2033.
Hybrid Solar Inverters with Capacities of 2 to 5 kW and 5 to 7 kW to Gain Traction
According to Future Market Insights (FMI), end users are preferring medium capacity solar inverters due to their high durability and efficiency. Individual homeowners prefer inverters with capacities between 2 and 7 kW.
Due to more cost-effectiveness compared to low- and high-range capacity inverters, medium sized solar inverters are gaining momentum in India. Government agencies are also launching lucrative policies and incentives to attract a large client base.
By capacity, the 2 to 5 kW and 5 to 7 kW segments are expected to together hold more than 85% of the market share in 2033. It is also anticipated to create an absolute dollar opportunity of about USD 141.5 million over the projected period.
Renowned companies are investing in research and development to differentiate their products from those of competitors. This includes offering inverters with higher efficiency, more advanced features, and longer lifetimes. Differentiated products would help them to stand out in a crowded market and attract customers who are looking for high-quality and reliable solar inverters.
A few other firms are investing in marketing and branding to increase awareness of their products & build a strong reputation in the market. This includes advertising, social media, and attending trade shows, as well as other industry events. Effective branding can enable companies to build trust & credibility with customers and can lead to increased sales.
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| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 148.2 million |
| Projected Market Valuation (2033) | USD 330.2 million |
| Value-based CAGR (2023 to 2033) | 8.3% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value (USD million) |
| Key Country Covered | India |
| Key Regions Covered | North India; West India; South India; East India |
| Key Segments Covered | By Product Type, Capacity, Phase, and Region |
| Key Companies Profiled | Lento Industries Pvt. Ltd; Delta Electronics Inc.; Sungrow Power Supply Co. Ltd.; Luminous Power Technologies Private Limited; Kehua Data Co., Ltd.; Sineng Electric Co. Ltd.; Polycab India Ltd; Ginlong Technologies Co., Ltd.; Hitachi Hi-Rel Power Electronics Private Limited; GOODWE; SMA Solar Technology AG; Huawei Technologies Co., Ltd.; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market in 2023 is valued at UDD 148.2 million.
The CAGR from 2023 to 2033 will be 7.9%.
From 2018 to 2022, the market expanded at a 2% CAGR.
2kW to 5kW capacity segment to lead the market.
The top three regions account for 98% of share in 2023.
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India Residential Solar Inverter Market
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