Business consulting firm Frost & Sullivan estimates the Indian solar market will be worth US$2.05 billion in 2013, up from US$1.05 billion last year.
The Jawaharlal Nehru National Solar Mission (JNNSM) by the government of India is driving growth in the solar industry, specifically, the manufacturing of cells and modules, states Frost & Sullivan’s latest report Indian Market for Chemicals and Materials Used in Photovoltaics.
The JNNSM is driving new opportunities to invest in the market for chemicals and materials used in the local manufacture of solar products. The demand for chemicals and materials used in solar cells and modules is estimated to grow at a CAGR of 22.2% till 2015, with the growth for module components estimated at over 25% CAGR for the same time period.
“With high peak power deficit, erratic crude oil prices, coal shortages and uncertainty of nuclear power, renewable energy sources such as solar power will be the future of sustainable power generation,” noted the report. “New opportunities to explore in the market for chemicals and materials used in solar cells and modules are presented with the JNNSM mandating indigenisation of solar cells and modules.”
“Investment in products, such as encapsulants that benefit from smaller lead times, backed by government support through JNNSM will aid in overcoming competition from China,” advised the report. “Continuous innovation to reduce costs and upgrade efficiency will further sustain market expansion.”