Press release
India’s solar expansion accelerates through incentives and rising capacity
Solar energy continues to expand worldwide, but it is in India that growth is accelerating most rapidly, driven by government incentive programs, tax benefits, subsidies, and green loans provided by banks. In 2025, newly installed capacity reached 37.5 gigawatts, marking a 50% increase compared to the previous year. For 2026, installations are expected to rise further, ranging between 45 and 50 gigawatts. If these projections are confirmed, the world’s most populous country could become the second-largest solar market globally, after China and ahead of the United States.
At the same time, India is emerging as a manufacturing hub for photovoltaic components. Intersolar Europe, taking place from June 23 to 25 in Munich, will place a strong focus on this South Asian country, which represents a key future market for the global photovoltaic industry. A wide range of events will offer visitors insights into market dynamics, new business opportunities, and supply chains, as well as direct engagement with Indian experts. The trade fair is organized as part of The smarter E Europe, the largest European exhibition alliance for the energy sector. Organizers expect more than 100,000 visitors and around 2,800 exhibitors from across the globe.
India is accelerating its path toward climate neutrality by 2070, with solar energy at the core of its strategy. Within the expansion of renewables, photovoltaics serve as a cornerstone technology for ensuring energy security. As economic and population growth drive rising energy demand, more companies are turning to renewable energy sources. By 2030, the country aims to install 500 gigawatts of renewable capacity, of which 280 gigawatts will come from solar.
The strong attractiveness of solar energy is also driven by a dramatic decline in costs. According to the International Renewable Energy Agency (IRENA), the cost of solar energy in India has fallen by more than 80% since 2010, making it the most cost-effective option for new power generation capacity.
However, significant challenges remain, including the need for a highly skilled workforce, the development of modern energy infrastructure, and the expansion of storage capacity, all of which are critical for the next phase of the energy transition. At the same time, these developments create broad opportunities for cooperation and new markets.
“For the solar and storage sectors, India is both a key sales market and an attractive partner for developing manufacturing capacity and, in the future, a source of finished and semi-finished products,” said David Wedepohl, Managing Director International Affairs at Bundesverband Solarwirtschaft e.V., which has been active in India since 2007. Germany has already supported several initiatives, including solar grid integration projects and training programs for technical personnel involved in rooftop system installation and maintenance.
The free trade agreement opens new opportunities
India is transforming its role from importer to global exporter of high-efficiency photovoltaic components. Supported by government incentive schemes such as the Production Linked Incentive (PLI) program, the industry is investing heavily in domestic manufacturing of advanced N-type technologies, including TOPCon and HJT, which significantly outperform traditional monocrystalline PERC modules in both efficiency and temperature resilience.
By 2030, module production is expected to increase sixfold. For Germany and Europe, this represents an opportunity to diversify supply chains while also supporting industrial development in India by leveraging European expertise. India is already the world’s fifth-largest economy. At the end of January 2026, the European Commission successfully concluded negotiations on a free trade agreement with India.
“India is emerging as one of the most dynamic manufacturing locations globally across the entire photovoltaic value chain, from modules to cells, wafers, ingots, and polysilicon,” said Puzant Baliozian, Sector Group Leader at VDMA Photovoltaics Equipment. “European machinery and equipment form the technological backbone of stable, precise, and efficient production processes, enabling Indian manufacturers to set new quality standards. Our equipment manufacturers have long been present in India, supporting and accompanying the sector’s development. Through close cooperation between India and Europe, and with support from European research, we are driving this industrial transformation while also strengthening European manufacturing. The EU-India free trade agreement further opens new opportunities for trade and exchange between the two regions.”
Despite this progress, significant barriers remain, including tariffs, import and export restrictions, and national initiatives such as “Make in India.” Moreover, India’s federal structure, composed of 28 states, results in diverse regulatory frameworks and local conditions, complicating the investment landscape for foreign companies. For this reason, Subrahmanyam Pulipaka, Director of the National Solar Energy Federation of India (NSEFI), has proposed the creation of a National Electricity Council to harmonize energy policies.
Leveraging water bodies and agricultural land
Approximately 75% of India’s installed solar capacity is concentrated in five states: Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Karnataka, all characterized by high solar irradiation throughout the year. Looking ahead, artificial lakes, reservoirs, and agricultural land are expected to play a growing role through models such as agrivoltaics and floating solar.
In an article for Energyworld, Subrahmanyam Pulipaka wrote: “Agrivoltaics offers a compelling dual benefit: it enhances both energy and food security by bringing generation closer to consumption points within the grid, while also increasing power output and efficiency. A dedicated national mission for floating solar could unlock India’s vast reservoir potential, on the scale of gigawatts, transforming underutilized surfaces into engines of clean energy growth.”
The energy transition is also seen as a lever to improve prosperity and reduce poverty. At the end of February 2024, the Indian government launched a program worth approximately €7.1 billion to encourage low-income households to install rooftop photovoltaic systems and generate their own electricity. Within one year, the number of such installations increased by more than 50%.
At the same time, NSEFI established the Committee of Women in Solar Energy (WISE) to promote women’s access to energy, training, and entrepreneurship within the energy sector.
Trade fair events focused on India
In collaboration with Intersolar Europe and other partners, the German Solar Industry Association (BSW-Solar) will organize several events during the trade fair focused on the Indian photovoltaic market. Together with VDMA, discussions will address the development of shared supply chains. VDMA and BSW-Solar, in cooperation with NSEFI, will bring together senior industry representatives for a CEO roundtable.
Additional sessions will include meetings with the WISE initiative and a business dialogue organized by the Indo-German Energy Forum on the new EU-India free trade agreement. The program will conclude on June 24 with the event “India Meets EU: Solar Night – Networking Reception.”
Intersolar Europe and the co-located exhibitions ees Europe, Power2Drive Europe, and EM-Power Europe will take place from June 23 to 25, 2026, at Messe München as part of The smarter E Europe, the largest European exhibition alliance for the energy sector.