INDIA SOLAR PV MODULE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Concentration and Competitive Landscape

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Falling module prices

Pronounced downward trend in solar module prices worldwide has played a seminal role in shaping India's solar PV module market. Continuing technology innovation coupled with rapidly increasing manufacturing capacities have led to significant reductions in production costs for solar panels over the past decade. Lower costs have translated to cheaper per unit costs for solar power generation, enhancing the competitive positioning of solar energy against traditional energy sources. This price decline phenomenon enables larger scale adoption across India.

The module price decline curve tells a remarkable story - from over US$ 4/Watt in 2010, international benchmark prices have now fallen below US$ 0.4/Watt according to industry reports. This represents a staggering ten-fold decrease in a span of just 10 years that has made solar power increasingly competitive on an unsubsidized basis in several market scenarios. Indian module manufacturers and project developers have also directly benefitted from these reductions in sourcing of equipment. Reduced capital expenditures for projects have supported lower project commissioning costs and tariffs discoverable through competitive bidding.

Large utility scale installations as well as decentralized rooftop segments find stronger commercial viability even after accounting for balance of system costs. The payback periods have progressively shortened, strengthening the financial case for investments. This has allowed for more aggressive targets to be set for capacity additions as the resource can now deliver power at tariffs on par or even below prevailing power pool prices from the grid.