
India's Solar Installation, Market to Grow at CAGR of 16% Till 2029
Tuesday, 06 May 2025, 14:18 IST

The system balance market, which comprises supporting elements of solar PV installation, is expected to increase to approximately $7 billion by 2029
India's solar photovoltaic (PV) supporting component market, including inverters, batteries and trackers, is anticipated to double within the next five years, starting FY24.
Market research firm 1Lattice's in its recent industry report estimated that the balance of system (BoS) market is expected to rise from approximately $3 billion in calendar year (CY) 2024 to approximately $7 billion by CY 2029, achieving a compound annual growth rate (CAGR) of 16 per cent.
BoS comprises all ancillary parts of a solar PV system, excluding panels, including inverters, mounting frames, trackers, wiring, combiner boxes, circuit protection gear, monitoring equipment, charge controllers, and batteries.
"As India ramps up its transition to renewable energy, the BoS segment is becoming the essential driver in India's transition journey," the company stressed.
Abhishek Maiti, Industrial Goods & Services Director at 1Lattice, has stated, "While the world rushes towards decarbonisation, attention needs to shift from solar panels themselves to the underlying infrastructure that enables them.
The report highlights the central role of the balance of system (BoS) components in making solar truly scalable and sustainable. With India poised to experience a BoS boom, the time is now for manufacturers, investors, and policymakers to synchronize strategies and investments, he emphasized.
Several factors are driving this growth, including India’s national target of 500 gigawatt (GW) non-fossil fuel capacity by 2030 and the commitment to generate 50 per cent of its electricity from renewable sources.
Enabling initiatives such as PM-KUSUM, Grid Connected Rooftop Solar Programme, and Delhi Solar Energy Policy are democratizing solar uptake in rural and urban regions and opening up new vistas for innovation, manufacturing, and investments in the BoS segment.
The worldwide BoS market is also anticipated to undergo substantial growth, increasing from estimated CY 2024 $60 billion to approximately CY 2029 $100 billion at a CAGR of 10 per cent, powered by strong clean energy commitments and incentives in main regions.
Apart from that, it also offers export prospects. India's expanding solar industry, with exports amounting to Rs 880 crore (approximately $105 million) in CY 2024 with the US being its largest market, enhances prospects for the BOS industry. It spurs local production and innovation to serve the domestic as well as international demand, 1Lattice said.
India's renewable energy industry is poised to receive more than $250 billion in investments, with solar PV projects likely to receive about $15.5 billion in investments. BoS components such as inverters, mounting structures, and electrical components will see rising demand to fuel the scaling up of solar installations," it added.
India's solar photovoltaic (PV) supporting component market, including inverters, batteries and trackers, is anticipated to double within the next five years, starting FY24.
Market research firm 1Lattice's in its recent industry report estimated that the balance of system (BoS) market is expected to rise from approximately $3 billion in calendar year (CY) 2024 to approximately $7 billion by CY 2029, achieving a compound annual growth rate (CAGR) of 16 per cent.
BoS comprises all ancillary parts of a solar PV system, excluding panels, including inverters, mounting frames, trackers, wiring, combiner boxes, circuit protection gear, monitoring equipment, charge controllers, and batteries.
"As India ramps up its transition to renewable energy, the BoS segment is becoming the essential driver in India's transition journey," the company stressed.
Abhishek Maiti, Industrial Goods & Services Director at 1Lattice, has stated, "While the world rushes towards decarbonisation, attention needs to shift from solar panels themselves to the underlying infrastructure that enables them.
The report highlights the central role of the balance of system (BoS) components in making solar truly scalable and sustainable. With India poised to experience a BoS boom, the time is now for manufacturers, investors, and policymakers to synchronize strategies and investments, he emphasized.
Several factors are driving this growth, including India’s national target of 500 gigawatt (GW) non-fossil fuel capacity by 2030 and the commitment to generate 50 per cent of its electricity from renewable sources.
Enabling initiatives such as PM-KUSUM, Grid Connected Rooftop Solar Programme, and Delhi Solar Energy Policy are democratizing solar uptake in rural and urban regions and opening up new vistas for innovation, manufacturing, and investments in the BoS segment.
The worldwide BoS market is also anticipated to undergo substantial growth, increasing from estimated CY 2024 $60 billion to approximately CY 2029 $100 billion at a CAGR of 10 per cent, powered by strong clean energy commitments and incentives in main regions.
Apart from that, it also offers export prospects. India's expanding solar industry, with exports amounting to Rs 880 crore (approximately $105 million) in CY 2024 with the US being its largest market, enhances prospects for the BOS industry. It spurs local production and innovation to serve the domestic as well as international demand, 1Lattice said.
India's renewable energy industry is poised to receive more than $250 billion in investments, with solar PV projects likely to receive about $15.5 billion in investments. BoS components such as inverters, mounting structures, and electrical components will see rising demand to fuel the scaling up of solar installations," it added.