Solar power costs in India have fallen by 80% since 2010
As solar energy expansion booms worldwide, India, in particular, is seeing rapid growth thanks to state funding programs, tax incentives, subsidies and green loans from banks which help added 37.5 gigawatts in 2025, a 50 percent increase from the previous year.
The 2026 budget provides for a deployment of 45 to 50 gigawatts, allowing the most densely populated country to become the second largest solar market in the world. Intersolar Europe will shine a spotlight on the south Asian country from June 23–25 in Munich.
India is an up-and-coming market for the international PV industry. There will be numerous events where visitors can learn about the market, new business opportunities and the structure of new supply chains. The exhibition will take place as part of “The smarter E Europe”, Europe’s largest alliance of exhibitions for the energy industry. More than 100,000 visitors and 2,800 exhibitors from all over the world are expected to attend.
Photovoltaics (PV) serves as the technological backbone of supply security in the expansion of renewable energies. 500 gigawatts of renewable energy are expected to be installed by 2030, including 280 gigawatts of solar energy. PV is becoming more attractive due to unprecedented price erosion: According to data from the International Renewable Energy Agency (IRENA), solar power costs in India have fallen by 80 percent since 2010, making it the most cost-effective option for new power installations.
But there are also challenges. The need for highly specialized skilled workers, the expansion of modern energy infrastructure and the scaling of storage capacity are key factors for the next transformative phase. These developments also open up enormous opportunities for collaborations and new markets. “India is both a major sales market and an attractive partner for expanding production capacity in the solar and storage industries. This also makes it a potential source for finished components and intermediate products,” says David Wedepohl, Managing Director International Affairs at the German Solar Association.
At the end of January 2026, the European Commission signed a free trade agreement with India. “Along the entire PV value chain – from module production and cells to wafers, ingots and polysilicon – India is growing to become one of the most dynamic producers in the world. The EU-India Free Trade Agreement also gives new opportunities for discussion and trade between both regions,” explains Dr. Puzant Baliozian, Sector Group Leader Photovoltaics Equipment at VDMA, (German Engineering Federation).
In the future, solar energy is set to expand onto reservoirs, bodies of water and agricultural land using agricultural PV and floating solar systems.
With support from Intersolar Europe and other partners, the German Solar Association is planning several side events at the exhibition on the topic of the India’s PV market. Together with the VDMA, they are dedicated to building joint supply chains.
The VDMA, the German Solar Association and the Indian NSEFI are hosting a CEO roundtable, bringing together high-ranking industry representatives.
The Indo-German Energy Forum are hosting a business dialogue to mark the free trade agreement concluded between India and the EU, VDMA said on 26 Mar. fiinews.com
