India’s solar photovoltaic (PV) balance of system (BoS) market is on a fast growth trajectory, with its value expected to more than double over the next five years. According to a new report by 1Lattice, the market is projected to grow from around $3 billion in 2024 to $7 billion by 2029, marking a compound annual growth rate (CAGR) of 16 per cent.
This surge is underpinned by the country’s ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030 and a national commitment to derive 50 per cent of its electricity from renewable sources.
Government Schemes Powering BoS Expansion
India’s renewable energy transition is not just panel-deep. Supporting infrastructure, known as the balance of system, plays a vital role in making solar installations efficient, scalable, and sustainable. The BoS market includes components such as inverters, mounting structures, trackers, wiring, combiner boxes, monitoring systems, and batteries.
Several government-led schemes are catalyzing adoption across both rural and urban India. These include:
- PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), aimed at solarizing agriculture.
- The Grid Connected Rooftop Solar Programme, enabling residential and commercial rooftop installations.
- The Delhi Solar Energy Policy, promoting solar adoption in the national capital.
These initiatives are not only democratizing access to solar energy but are also creating new opportunities for domestic manufacturing, innovation, and foreign direct investment in the BoS segment.
BoS: A Critical Enabler in the Clean Energy Journey
“The world is racing toward decarbonisation, and the focus must go beyond solar panels to the infrastructure that supports them,” said Abhishek Maiti, Director of Industrial Goods and Services at 1Lattice. He noted that BoS components are essential for making solar energy scalable, reliable, and efficient.
As India speeds up its energy transformation, the BoS market is emerging as a strategic pillar—linking manufacturing capabilities, policy incentives, and global sustainability objectives.
Global Trends Fit India’s Momentum
India’s path is consistent with an international shift. The international BoS market is also sustained for massive growth, set to transit from $60 billion in 2024 to $100 billion from 2024 to 2029, representing a CAGR of 10 per cent. Much of this growth is drawn from clean energy targets, tax credits, and climate ambitions in Europe, North America, and East Asia.
Chances for Manufacturers and Investors
Industry analysts believe that this is a prime chance for investors, manufacturers, and policymakers to align their agendas. As the demand for local parts keeps increasing, India can become the global hub for manufacturing BoS for solar power, recalling its aspirations for leadership in clean energy.
As solar revolution picks up pace, balance of system hardware are no sidekicks, they’re ever more the key to India’s sustainable future. intensifies, balance of system components are not just supporting players, they are becoming the backbone of India’s green future.
