India Solar Thermal Collectors Market Overview, 2031

Market Insights on India Solar Thermal Collectors Market

• According to the research report, "India Solar Thermal Collectors Market Overview, 2031," published by Bonafide Research, the India Solar Thermal Collectors market is anticipated to grow at 13.32% CAGR from 2026 to 2031.
• India's solar thermal sector has undergone a strategic transformation over the past five years, evolving from a residential water heating focus into a technology addressing industrial process heat and large-scale commercial applications. The Ministry of New and Renewable Energy has documented an estimated exploitable techno-economic potential of 40 million square metres of collector area for solar water heaters alone, yet the cumulative installed base stands at approximately 32 million square metres, revealing a significant gap between technical potential and realised deployment.
• Annual new installations reached roughly 4.2 million square metres in 2025, an 18.7% increase over 2024, with the industrial segment now accounting for over 55% of new capacity as sectors including textiles, dairy, food processing, and pharmaceuticals transition toward solar-driven process heat. The Quality Control Order implemented by MNRE in October 2024, enforced through the Bureau of Indian Standards under IS 12933 and IS 16542, has fundamentally restructured the supply chain by eliminating substandard imports and mandating rigorous testing protocols for flat plate and evacuated tube collectors. The Solar Thermal Federation of India has positioned this regulatory intervention as a catalyst for domestic manufacturing, enabling Indian producers to compete on quality and facilitate exports to markets requiring certified solar thermal equipment.
• Policy momentum has accelerated through multiple channels, with the National Solar Mission Phase II extending subsidy support through 2026 and state-level building energy codes mandating renewable thermal integration in new commercial construction. The Ministry of New and Renewable Energy has launched a viability gap funding scheme offering up to 50% financial support, capped at INR 2 crore per project, for concentrating solar thermal installations addressing industrial process heating across sectors from automotive to textiles.
• Rajasthan's Clean Energy Policy targets 125 GW of solar power by 2030, while Gujarat's Integrated Renewable Energy Policy 2025 explicitly promotes concentrated solar thermal as an emerging technology within a unified regulatory framework targeting 100+ GW of renewable capacity. The Bureau of Indian Standards authorised testing laboratories expanded from two to multiple facilities following the April 2024 Quality Control Order, addressing the initial certification bottleneck that had created a backlog of over 1,000 models awaiting approval.

Competitive Landscape of India Solar Thermal Collectors Market

• Tata Power Solar operates as a dominant force in the Indian solar thermal landscape, manufacturing flat plate collectors and integrated solar water heating systems for residential and commercial applications with a distribution network spanning the subcontinent. The company leverages its position as a vertically integrated manufacturer to serve both domestic and export markets, with particular strength in the commercial and institutional segments.
• Havells India manufactures solar water heating systems targeting urban households, emphasising high-quality construction and performance reliability through its established electrical goods distribution channel. V-Guard Industries has built a strong service network across southern India for residential solar heaters, while Racold, a division of Ariston Group, produces durable and energy-efficient products for homes and apartments.
• Supreme Solar specialises in efficient collector technology for residential and industrial applications, with manufacturing facilities strategically located to serve western and southern Indian markets. Sudarshan Saur manufactures customised large-capacity industrial water heating systems, serving the dairy, food processing, and textile sectors with engineered solutions requiring high-temperature process heat.
• Emmvee Solar operates advanced manufacturing capabilities for commercial installations, producing flat plate collectors and integrated systems from its Bangalore facility. The Solar Thermal Federation of India has documented that the top five domestic manufacturers collectively command approximately 42% of market share, with small and regional suppliers accelerating penetration through differentiated service offerings and flexible pricing models. International brands including Himin Solar and Bosch Thermotechnology have entered through technology licensing and joint venture arrangements, focusing primarily on high-temperature industrial heating and large-scale district heating applications.
• The competitive landscape has been reshaped by the Quality Control Order's certification requirements, which have raised entry barriers and favoured established manufacturers with BIS-compliant production capabilities. The MNRE's approved manufacturer list includes Unisun Technologies, Anu Solar, Divya Industries, Electrotherm Renewable, Eagle Technologies, Kaushal Solar Equipments, Bharat Heavy Electricals, Arsh Electronics, Maharishi Solar Technology, and Kalisons Telvent, reflecting a fragmented but consolidating supply base.
• The industry recorded an average annual exit rate of 8% between 2019 and 2025, yet new entrants have stabilised at 15 to 20 companies annually, indicating sustained entrepreneurial interest despite competitive pressures. Import dependence has declined significantly from 35% in 2018 to 18% in 2025, with China supplying vacuum tubes and selective coating materials, while India-manufactured flat plate collector systems have gained market share in Middle East and African export markets.

Market Dynamics

Driver: Industrial Process Heat and Viability Gap Funding India's industrial sector requires process heat for textiles, dairy, food processing, and pharmaceuticals at temperatures below 250°C, representing an addressable market of approximately 6.5 GW-thermal for concentrating solar thermal technologies out of 13 GW total thermal technical potential. The Ministry of New and Renewable Energy's viability gap funding scheme offers up to 50% financial support capped at INR 2 crore per project, targeting parabolic trough, linear Fresnel, parabolic dish, and power tower systems operating from 60°C to 600°C. The Energy and Resources Institute has recommended establishing a National Solar Thermal Mission with dedicated institutional mechanisms and long-term financing to accelerate industrial deployment.

Challenge: Certification Bottleneck and Financing Constraints The Quality Control Order implemented in April 2024 initially created a certification bottleneck when only two testing laboratories were authorised by the Bureau of Indian Standards, with a cumulative backlog exceeding 1,000 models manufactured under the older order requiring testing. The Energy and Resources Institute has identified financial and technological barriers as principal constraints for small and medium enterprises, recommending fixed-interest loans with repayment periods up to 15 years, a 5% GST rate, and accelerated depreciation benefits while avoiding direct subsidies to encourage market-driven cost reductions. High-temperature heat transfer fluids, phase-change storage materials, and precision control valves remain dependent on imports, constraining domestic supply chain resilience.



Trend: Domestic Manufacturing Quality Upgrade and Export Expansion The Quality Control Order's alignment with ISO 9459-4:2013 standards has positioned Indian manufacturers for export markets requiring certified equipment, with export value reaching USD 320 million in 2025 flowing primarily to Africa, Southeast Asia, and South America. Indian-manufactured flat plate collector systems have gained market share in Middle East and African markets, with export value growing 31% year-on-year in the first quarter of 2026. Domestic manufacturing now covers approximately 82% of national demand, up from 65% in 2018, as the certification framework has incentivised quality upgrades and capacity expansion.

Segment Analysis

India Solar Thermal Collectors Market by Type
• Concentrating solar thermal collectors are advancing through the Ministry of New and Renewable Energy's viability gap funding scheme, which offers up to 50% financial support capped at INR 2 crore per project for parabolic trough systems operating from 60°C to 400°C, linear Fresnel systems from 60°C to 250°C, parabolic dish systems from 100°C to 500°C, and power tower systems from 150°C to 600°C. Larsen & Toubro Energy GreenTech signed a Memorandum of Understanding with Belgium-based John Cockerill in March 2025 to explore technology collaboration in concentrated solar power and thermal energy storage, focusing on manufacturing, component supply, and engineering solutions. The India One Solar Thermal Power Plant at Shantivan campus in Rajasthan, operational since 2017, remains the country's largest concentrating solar installation at 1 MW capacity. Recent studies indicate an addressable market potential of 6.5 GW-thermal for concentrating solar thermal technologies out of total industrial thermal demand.
• Non-concentrating collectors dominate the Indian market by volume, with evacuated tube collectors commanding approximately 72% of installations and flat plate collectors accounting for 21% as of 2025. The Quality Control Order covers IS 12933 for flat plate collectors, IS 16542 for direct insertion storage tanks, and IS 16544 for evacuated tube solar water heating systems, with BIS certification mandatory for manufacture, import, or sale. Tata Power Solar, Havells, Racold, V-Guard, Supreme Solar, Sudarshan Saur, and Emmvee Solar constitute the primary domestic manufacturers, with the top five commanding approximately 42% market share. New selective absorption coating technologies have elevated collection efficiency above 78%, while high-temperature storage modules operating at 150°C to 200°C have achieved domestic content exceeding 60%.

India Solar Thermal Collectors Market by Application
• Water heating remains the foundational application with cumulative installed capacity exceeding 32 million square metres, serving residential, commercial, and institutional demand. The Ministry of New and Renewable Energy's capital subsidy pattern provides INR 3,000 per square metre for evacuated tube collectors, INR 3,300 for liquid-based flat plate collectors, and INR 3,600 for direct heating systems, with soft loans at 5% interest for balance costs. Karnataka leads the national market with more than 42% of annual sales, driven by the state government's mandatory clause requiring solar water heaters in urban residential buildings.
• Space heating and cooling applications are expanding through commercial building mandates and industrial process integration. The Ministry of New and Renewable Energy's subsidy pattern extends to solar air heating systems with flat plate collectors using air as the working fluid at INR 2,400 per square metre and direct heating applications at INR 3,600 per square metre. The National Solar Mission Phase II supports deployment of solar thermal systems in new commercial buildings, with penetration in new construction projected to increase from 12% in 2024 to over 18% in 2026.
• Industrial process heat represents the most significant growth frontier, with the industrial segment accounting for over 55% of new installations in 2025. The Ministry of New and Renewable Energy's viability gap funding scheme targets automotive, breweries, cement, ceramics, chemicals, dairy, food processing, glass, iron and steel, leather, non-ferrous metals, petroleum refineries, pharmaceuticals, plastics, pulp and paper, rubber, textile dyeing, and hospitality sectors. The Energy and Resources Institute has recommended pilot projects in industrial parks serving food processing, textiles, dairy, and pharmaceuticals, supported by shared solar thermal infrastructure and risk-sharing mechanisms.
• Swimming pool heating applications remain a niche segment, with the Ministry of New and Renewable Energy's subsidy framework covering direct heating applications at INR 3,600 per square metre applicable to pool heating installations. The segment is concentrated in hospitality and recreational facilities in southern and western states with high solar irradiance and extended swimming seasons.
• District heating applications are at an early stage, with the National Solar Mission Phase II supporting demonstration projects for large-scale solar thermal integration into district energy systems. The Energy and Resources Institute's policy brief recommends creating a Mission-led Special Purpose Vehicle to implement pilot projects and undertake back-to-back contracting for industrial process heat supply, with scope for extension to district heating networks.
• Power generation through concentrating solar thermal has reached 2.8 GW of cumulative installed capacity as of 2025, a 480% increase from 2020, with Rajasthan and Gujarat contributing 78% of new capacity additions. The India One Solar Thermal Power Plant in Rajasthan represents the country's flagship concentrating solar power installation. Larsen & Toubro Energy GreenTech's partnership with John Cockerill aims to advance concentrated solar power and thermal energy storage technologies for dispatchable renewable power generation.
• Other applications including desalination and agricultural drying are advancing through research and demonstration projects supported by the Ministry of New and Renewable Energy's RE-RTD programme. The Concentrating Solar Thermal Process Heat Solution for India's top cancer hospital, implemented with Australian National University's Big Dish technology, demonstrates the application of solar thermal for institutional steam generation. Agricultural drying applications remain predominantly small-scale with no significant commercial deployment documented in government statistics.

India Solar Thermal Collectors Market by End-User
• Commercial end-users including hotels, hospitals, educational institutions, and office buildings represent a growing segment supported by state-level building energy codes mandating renewable thermal integration. The Ministry of New and Renewable Energy's viability gap funding scheme is open to industries engaged in the manufacture, development, deployment, or utilisation of solar thermal technologies, including beneficiary industries participating through consortium arrangements. The National Solar Mission Phase II supports solar thermal deployment in new commercial buildings, with the commercial segment benefiting from the Bureau of Indian Standards certification framework ensuring product quality and performance reliability.
• Residential end-users constitute the largest installed base with cumulative capacity exceeding 32 million square metres across approximately 325 million permanent houses. The Ministry of New and Renewable Energy's capital subsidy provides INR 3,000 per square metre for evacuated tube collectors and INR 3,300 for flat plate collectors, with soft loans at 5% for balance costs excluding 20% beneficiary share. Karnataka, Maharashtra, and Gujarat represent the leading residential markets, with Karnataka alone accounting for more than 42% of annual national sales due to mandatory installation requirements in urban residential buildings.
• Industrial end-users represent the most significant growth opportunity, with the industrial segment accounting for over 55% of new installations in 2025. The Ministry of New and Renewable Energy's viability gap funding scheme provides up to 50% financial support capped at INR 2 crore per project for concentrating solar thermal installations addressing process heat requirements from 60°C to 600°C. Levelised cost of heat has declined to INR 0.8 to 1.2 per kilowatt-hour thermal, a 32% reduction from 2020, with industrial payback periods shortened to 2.5 to 3.8 years.
• Utility end-users engage with solar thermal through concentrating solar power generation and large-scale district heating applications. Cumulative concentrating solar power installed capacity reached 2.8 GW by end-2025, with Rajasthan and Gujarat contributing 78% of new capacity additions. The Ministry of New and Renewable Energy's RE-RTD programme supports demonstration of concentrating solar thermal and thermal energy storage for dispatchable renewable power generation. Larsen & Toubro Energy GreenTech's collaboration with John Cockerill focuses on manufacturing, component supply, and engineering solutions essential for deployment of concentrating solar power and thermal energy storage projects.


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

Aspects covered in this report
• Solar Thermal Collectors Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Concentrating
• Non-Concentrating

By Application
• Water Heating
• Space Heating & Cooling
• Industrial Process Heat
• Swimming Pool Heating
• District Heating
• Power Generation
• Other Applications(Desalination, Agricultural/Drying applications)

By End-User
• Commercial
• Residential
• Industrial
• Utility