Against the backdrop of global energy transition, the Indian photovoltaic industry has shown remarkable rapid development in 2024. According to statistics, the total installed capacity of renewable energy in India will increase from 180.80 gigawatts in December 2023 to 209.44 gigawatts in 2024, a year-on-year increase of 15.84%. The solar power sector will add 24.54 gigawatts of new installed capacity, a cumulative increase of 33.47% compared to 2023. India has become one of the top five global photovoltaic markets, and its huge market demand is constantly being released under policy support and energy transformation.

Reasons for the rapid development of India's photovoltaic industry
1、Strong policy support: The Indian government has formulated an ambitious new energy development plan and introduced a series of incentive policies to fulfill its emission reduction commitments under the Paris Agreement. For example, implementing a production linked incentive plan that provides incentives to solar photovoltaic module and battery manufacturers based on production output, with a maximum reward limit of 400 rupees per watt for modules and 150 rupees per watt for batteries. At the same time, starting from April 1, 2022, a 40% tariff will be imposed on solar photovoltaic modules and a 25% tariff will be imposed on solar photovoltaic cells to promote local production and reduce import dependence.
2、The market potential is enormous: India's economic development momentum is good, and its demand for energy continues to grow. The vast domestic renewable energy market space provides strong endogenous driving force for the development of the photovoltaic industry. In addition, the global demand for renewable energy is increasing, and in the context of addressing climate change, the Indian photovoltaic industry has also benefited from this international environment, attracting the attention of domestic and foreign investors.
3、Chinese photovoltaic products help: The high cost-effectiveness of Chinese photovoltaic modules provides strong support for the development of India's photovoltaic industry. Chinese photovoltaic giants such as JinkoSolar, Longi Green Energy, and Trina Solar have long occupied the top three positions in the Indian photovoltaic module market with their technological and cost advantages, which to some extent meets the rapidly growing demand of the Indian photovoltaic market.
4、Local companies actively invest: Indian local photovoltaic companies are also increasing their investment efforts, such as Jakson Engineers announcing a 20 billion ruble expansion of production capacity, planning to increase the existing factory capacity to 2GW and build a new 2.5GW factory, enhancing supply chain control capabilities and improving market competitiveness.

Challenges faced by the development of India's photovoltaic industry
1、Weak technology research and development: The Indian photovoltaic industry is relatively lagging behind in technology research and development, lacking independent innovation capabilities. Most photovoltaic equipment and technology rely on imports, and the local industrial chain is not fully mature, putting it at a disadvantage in global photovoltaic industry competition.
2、Insufficient power grid infrastructure: With the rapid growth of photovoltaic installed capacity, India's power grid infrastructure is facing enormous pressure. How to achieve effective access and stable transmission of photovoltaic power generation is an urgent problem for the sustainable development of India's photovoltaic industry.
3、Policy implementation and stability: Although the Indian government has introduced a series of policies to support the development of the photovoltaic industry, there may be various challenges in the process of policy implementation, such as low administrative efficiency, local protectionism, etc. At the same time, the stability of policies also needs to be further improved to avoid unnecessary risks to enterprises.

Opportunities and Prospects for the Development of India's Photovoltaic Industry
1、International cooperation opportunities: India can leverage its market advantages to strengthen cooperation with international photovoltaic companies, introduce advanced technology and management experience, and enhance the competitiveness of its local photovoltaic industry. At the same time, actively participate in the division of labor and cooperation in the global photovoltaic industry, expand the international market, and achieve mutual benefit and win-win results.
2、Accelerating energy transition: With the acceleration of global energy transition, India, as a major energy demand country, has enormous potential for the development of renewable energy. As an important component of renewable energy, the photovoltaic industry will play an increasingly important role in the transformation of India's energy structure, with broad market prospects in the future.
3、Technological innovation driving: The continuous breakthroughs in new generation photovoltaic technologies, such as perovskite photovoltaic cells and heterojunction photovoltaic cells, provide new development opportunities for the Indian photovoltaic industry. India can increase its research and development investment in these cutting-edge technology fields, strive to make breakthroughs in technological innovation, and achieve leapfrog development of the photovoltaic industry.

While the Indian photovoltaic industry is rapidly developing, it is facing both numerous challenges and enormous opportunities. The Indian government and enterprises need to work together to strengthen policy support and stability, increase investment in technology research and development, improve power grid infrastructure construction, actively engage in international cooperation, promote the sustainable and high-quality development of India's photovoltaic industry, and make greater contributions to the global energy transformation.