The Indian solar energy sector is experiencing rapid growth, driven by a strong domestic market and rising demand from the Middle East. While US companies dominate the EPC and O&M rankings, Indian firms are making significant strides, particularly in the EPC space. Larsen & Toubro, for instance, leads with a substantial 13.2GW of capacity across operating and under-development assets, and an operational portfolio of 70 projects. This growth is mirrored in the solar PV capacity, with India now the world's third-largest solar market, adding around 33GW in 2025, nearly matching the US's 35GW. The demand for new EPC work from Middle Eastern asset owners is a significant factor in this growth, with Indian companies like Larsen & Toubro building more in Saudi Arabia than at home. However, the domestic focus of Indian project developers and IPPs is notable. Adani and NTPC, the only Indian companies in the top ten for project development capacity, and Adani as the sole Indian firm in the top ten of the IPP rankings, work almost exclusively in India. This contrasts with the global footprint of US and Chinese companies, which have larger portfolios and operate internationally. The regulatory environment in India, such as the Approved List of Modules and Manufacturers (ALMM), encourages the use of domestically-manufactured components, further boosting the Indian solar sector. The growth in project development and deployment is expected to be maintained by specialists already operating in the Indian solar sector, with a focus on large-scale projects and the integration of battery energy storage systems (BESS). The Indian solar industry is a distinctive market, with its own regulatory demands, and this has led to a closed procurement market that has favored domestic firms over international competitors. As a result, overseas developers face challenges in breaking into the Indian market, with European firms being the primary entrants. The future of the Indian solar sector looks promising, with continued growth and a focus on domestic manufacturing and large-scale projects.
