India’s solar photovoltaic (PV) supporting component market, such as inverters, batteries and trackers, is expected to double over the next five years, beginning FY24.
Market intelligence firm 1Lattice’s in its latest industry report projected that the balance of system (BoS) market is projected to grow from around $3 billion in calendar year (CY) 2024 to around $7 billion by CY 2029, registering a compound annual growth rate (CAGR) of 16 per cent.
BoS includes all the supporting components of a solar PV installation, other than panels, such as inverters, mounting structures, trackers, wiring, combiner boxes, circuit protection devices, monitoring systems, charge controllers, and batteries.
“As India accelerates its shift toward renewable energy, the BoS segment is emerging as a critical enabler in the country’s energy transition journey,” the company emphasised.
‘Go beyond solar’
Abhishek Maiti, Director for Industrial Goods & Services at 1Lattice, said, “As the world races towards decarbonisation, the focus must go beyond solar panels to the infrastructure that supports them.”
The report underscores the pivotal role of the balance of system (BoS) components in making solar truly scalable and sustainable. With India set to witness a BoS boom, now is the time for manufacturers, investors, and policymakers to align strategies and investments, he stressed.
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.
Democratising solar adoption
Enabling schemes like PM-KUSUM, the Grid Connected Rooftop Solar Programme, and the Delhi Solar Energy Policy are helping to democratise solar adoption across rural and urban areas, bringing new opportunities for innovation, manufacturing, and investment in the BoS space.
The global BoS market is also expected to experience significant expansion, growing from an estimated $60 billion in CY 2024 to around $100 billion by CY 2029 at a CAGR of 10 per cent, driven by robust clean energy commitments and incentives across key regions.
Besides, it also presents export opportunities. India’s growing solar market, with exports reaching ₹880 crore (around $105 million) in CY 2024 with the US as its largest market, boosts opportunities for the BOS sector. It drives local manufacturing and innovation to meet the domestic as well as global demand, 1Lattice noted.
“India’s renewable energy sector is set to attract over $250 billion in investments, with solar PV projects expecting around $15.5 billion in investments. Demand for BoS components like inverters, mounting structures, and electrical components will increase to support the scaling of solar installations,” it added.