India Net-Zero Energy Buildings Market Overview, 2031

Key Insights

• According to the research report, "India Net-Zero Energy Buildings Market Outlook, 2031," published by Bonafide Research, the India Net-Zero Energy Buildings Market is anticipated to grow at more than 22.39% CAGR from 2026 to 2031.
• India’s building sector is entering a period of sustained energy-efficiency investment as construction activity, urbanisation and cooling demand continue to grow. The building sector already accounts for more than 30% of India’s electricity consumption, making improvements in building envelopes, cooling systems, lighting, renewable generation and energy management increasingly important. India’s commitment to achieve net-zero emissions by 2070 provides the broader policy direction for this transition.
• India’s building decarbonisation pathway combines stronger requirements for new buildings with gradual improvement of the existing stock. The Energy Conservation and Sustainable Building Code (ECSBC) 2024 provides an updated framework for commercial and office buildings, while the Eco-Niwas Samhita (ENS) 2024 brings together energy-efficiency and sustainability requirements for qualifying residential buildings. Alongside these codes, rooftop solar programmes, green-building ratings and energy-efficiency initiatives are creating opportunities across both new construction and retrofit projects.
• Building regulation is becoming broader than basic energy efficiency. ECSBC 2024 introduces different performance levels, including ECSBC Compliant, ECSBC Plus and Super ECSBC buildings, while ENS 2024 combines building-envelope requirements with electro-mechanical and renewable-energy provisions. This creates a clearer pathway for developers and building owners to move from minimum compliance toward higher-performance buildings.
• Solar generation is becoming an increasingly visible part of India’s building-energy transition. The PM Surya Ghar: Muft Bijli Yojana was launched with an overall outlay of ₹75,021 crore and a target of supporting rooftop solar for 1 crore households by March 2027. By August 2026, more than 50 lakh households had benefited from installations under the programme, with approximately 14.8 GW of rooftop solar capacity commissioned through the scheme. This strengthens the case for combining energy-efficiency measures with on-site renewable generation.
• India’s climate diversity means that net-zero building solutions cannot follow a single technology model. Cooling efficiency is particularly important across many regions, while insulation, shading, efficient glazing, ventilation, heat pumps, rooftop solar, battery storage and building-energy-management systems can be combined according to local conditions. The most attractive solutions are therefore those that reduce energy demand while improving comfort and integrating renewable electricity.

Market Outlook

• The India Net-Zero Energy Buildings Market is developing through the interaction of building regulation, renewable-energy deployment, rising electricity demand and growing interest in lower operating costs. ECSBC 2024 and ENS 2024 provide updated national frameworks, but their practical impact depends on adoption and enforcement by states and local authorities. This makes the market more fragmented than a single nationwide regulatory market, with adoption levels varying by state, building type and project category.
• New construction provides a strong opportunity to integrate energy performance from the beginning of a project. Developers can incorporate efficient cooling and ventilation, better insulation and glazing, daylighting, efficient lighting, smart controls and rooftop solar during the design stage. This approach can be more cost-effective than upgrading the same systems after occupancy and allows energy performance to be considered alongside architecture, structural design and electrical planning.
• Renovation and retrofitting will remain important as India’s existing building stock continues to expand. Older buildings often have significant opportunities for reducing cooling loads, improving lighting efficiency and lowering electricity consumption through equipment replacement and controls. Typical retrofit measures include efficient air-conditioning systems, envelope improvements, LED lighting, rooftop solar, variable-speed drives, building-management systems and improved ventilation.
• Rooftop solar is becoming one of the clearest growth areas connected to residential buildings. PM Surya Ghar has accelerated household adoption by combining central financial assistance with a national implementation platform. The programme had crossed 50 lakh beneficiary households by August 2026 and had commissioned about 14.8 GW of rooftop solar capacity, creating a large installed base around which additional energy-management, storage and electrification solutions can develop.
• Equipment demand is likely to remain concentrated around cooling, solar generation and energy-efficiency technologies. High-efficiency air conditioners, heat pumps, efficient ventilation equipment, insulation, high-performance glazing, photovoltaic systems, inverters, batteries and building-energy-management systems all have roles to play. However, technology selection will remain highly dependent on climate zone, building occupancy, electricity tariffs, available roof area and project economics.

Policies & Regulatory Landscape

• India’s building-energy policy framework is led by the Bureau of Energy Efficiency under the Energy Conservation Act. The Energy Conservation and Sustainable Building Code (ECSBC) 2024 establishes energy-efficiency and sustainability requirements for qualifying commercial and office buildings. The framework covers areas such as building envelopes, mechanical systems, lighting, electrical systems, renewable energy and other sustainability measures, with different performance levels available for projects seeking performance beyond the basic requirements.
• ECSBC 2024 applies to commercial and office buildings meeting the specified energy-use threshold of 100 kW connected load or 120 kVA contract demand or more. The code provides three performance levels: ECSBC Compliant Buildings, ECSBC Plus Buildings and Super ECSBC Buildings. The higher levels allow projects to pursue stronger energy and sustainability performance beyond the basic code requirements.
• The Eco-Niwas Samhita (ENS) 2024 provides a consolidated framework for energy conservation and sustainability in qualifying residential buildings. It combines provisions covering the building envelope with electro-mechanical and renewable-energy systems. The 2024 code applies to residential buildings or residential building complexes with a minimum connected load of 100 kW or contract demand of 120 kVA, subject to the applicable regulatory framework.
• The building-envelope provisions are particularly relevant to India’s varied climate conditions. They are designed to limit heat gains in cooling-dominated climates and heat losses in heating-dominated climates while supporting natural ventilation and daylighting. This makes passive design, insulation, glazing, shading and orientation important components of energy-efficient building development.
• BEE’s Shunya Labelling Programme provides a dedicated pathway for Net Zero Energy Buildings and Net Positive Energy Buildings. The programme is aimed at buildings that generate renewable energy to match or exceed their annual energy use. It complements the mandatory building-code framework by providing a voluntary route for projects seeking a higher level of energy performance.
• Rooftop solar policy is another major driver of building-sector decarbonisation. PM Surya Ghar: Muft Bijli Yojana was approved with an outlay of ₹75,021 crore and is designed to support rooftop solar installations for 1 crore residential households. The programme provides central financial assistance and has significantly expanded the residential rooftop-solar market.

Net-Zero Energy Buildings Procurement & Industry Impact

• Net-zero and high-performance building procurement in India typically involves building owners, government agencies, developers, architects, engineering consultants, contractors, equipment manufacturers, system integrators and energy-service companies. Procurement decisions increasingly consider energy performance alongside capital cost, particularly for large commercial, institutional and public-sector projects.
• Equipment suppliers need to provide solutions that perform reliably across India’s different climate zones. Cooling equipment is particularly important because air-conditioning demand is rising in many parts of the country. Efficient HVAC systems, heat pumps, ventilation equipment, insulation, glazing, solar PV, inverters, batteries and building-energy-management systems can all contribute to lower building energy consumption.
• Domestic manufacturing is becoming more important in the clean-energy supply chain. Government support for solar manufacturing and the growing domestic rooftop market are strengthening local supply capabilities, while energy-efficiency programmes continue to create demand for efficient electrical and mechanical equipment.
• Solutions and services providers have an important role in helping building owners move from individual technology purchases toward integrated performance improvements. Energy audits, engineering studies, building-energy modelling, commissioning, measurement and verification, code-compliance support and digital monitoring can help ensure that installed equipment delivers the expected energy savings.
• Procurement is also beginning to consider sustainability beyond operational electricity consumption. Green-building certification, corporate sustainability commitments and emerging interest in embodied carbon are encouraging developers to pay greater attention to materials, environmental performance data, water use, waste and lifecycle considerations. This is gradually broadening the definition of a high-performance building in India.

Industry News

• In August 2026, the PM Surya Ghar: Muft Bijli Yojana crossed the milestone of 50 lakh beneficiary households. More than 50.06 lakh households had benefited from rooftop solar installations, while approximately 14.8 GW of rooftop solar capacity had been commissioned under the scheme. The programme had also supported more than 25,000 central government buildings through solarisation initiatives. This confirms the rapid expansion of distributed solar as part of India’s building-energy transition.
• In June 2025, the Indian Army inaugurated the country’s first geothermal-based Net Zero Energy Building at Jhansi. The building combines geothermal technology with solar power and other energy-efficiency measures. The project demonstrates the potential for climate-specific renewable and low-energy technologies in institutional and defence infrastructure.
• In June 2026, the Bureau of Energy Efficiency and TERI launched a master-trainer programme focused on advancing energy-efficient and sustainable building practices. The programme covers ECSBC and ENS requirements along with building envelopes, efficient HVAC, insulation, sustainable materials, building-energy management and performance monitoring. The initiative highlights the growing need for trained professionals as building-code implementation expands.
• In August 2026, NBCC and HUDCO began development of a commercial project in Kaushambi, Ghaziabad, valued at approximately ₹34.64 crore. The project is planned as a B+G+7 development with about 6,400 m² of built-up area and is targeting a 3-Star GRIHA rating. The project illustrates how sustainability certification is being incorporated into public-sector development and procurement.

Segment Analysis

Net-Zero Energy Buildings By Project Type
• New Construction provides the clearest opportunity to integrate energy-efficiency measures without the disruption associated with retrofits. Developers can incorporate efficient HVAC, improved envelopes, shading, high-performance glazing, efficient lighting, smart controls and rooftop solar during the design and construction stages. ECSBC requirements for qualifying commercial and office buildings and the wider adoption of ENS and green-building practices encourage developers to consider energy performance early in project planning.
• Renovation & Retrofitting is becoming increasingly important as the existing building stock grows. Many older buildings can reduce electricity consumption through efficient cooling equipment, lighting upgrades, envelope improvements, controls, rooftop solar and better operational management. Commercial buildings with significant energy loads offer particularly attractive opportunities because savings can be measured against existing consumption and used to justify investment.

Net-Zero Energy Buildings By Building Type
• Residential buildings represent a major opportunity because of the size of the housing stock and the rapid expansion of rooftop solar. Apartments, group housing and individual homes can benefit from better envelopes, efficient cooling, efficient appliances, solar PV, smart energy management and, where appropriate, battery storage. PM Surya Ghar is strengthening the residential solar market by reducing the upfront cost of rooftop installations for eligible households.
• Non-Residential buildings offer opportunities for more integrated energy-performance solutions. Offices, hospitals, hotels, schools, universities, retail facilities, government buildings and other commercial properties typically have significant cooling, ventilation and lighting requirements. These buildings can combine efficient HVAC, automation, energy monitoring, solar generation and other measures to reduce operating costs and improve energy performance.



Net-Zero Energy Buildings By Component
• Equipment demand is increasingly focused on efficient cooling, renewable generation and technologies that reduce building energy consumption. High-efficiency air conditioners, heat pumps, efficient ventilation systems, insulation, high-performance glazing, rooftop PV, inverters, batteries and building-energy-management systems are relevant across different building types. The preferred technology mix depends on climate, building design, occupancy, electricity tariffs and available installation space.
• Solutions & Services are becoming increasingly important as building projects require greater coordination between architecture, engineering, equipment and renewable-energy systems. Energy audits, building-energy modelling, ECSBC and ENS compliance support, green-building certification, commissioning, measurement and verification, retrofit design, digital monitoring and energy-management services can help building owners achieve measurable energy savings. Integrated service models are particularly valuable for deep-retrofit and high-performance projects where individual measures need to work together rather than being installed independently.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Net-Zero Energy Buildings with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation



By Project Type
• New Construction
• Renovation & Retrofitting

By Building Type
• Residential
• Non-residential

By Component
• Equipment
• Solutions & Services