Distributed and utility-scale renewable energy markets are reshaping product strategies and investment decisions in India, with technology choices and policy stability emerging as decisive factors.

There has been a growing demand for microinverters from the commercial and industrial (C&I) consumers, even for rooftop solar systems of 100 kW to 200 kW capacity, despite the higher costs, according to Bharat Singh TN, Director – Sales and Marketing at Ningbo Deye New Energy.

He also noted that there is no shortage of inverters in India. “The perception is that distributors do not stock them when modules are not available.”

The Ministry of New and Renewable Energy (MNRE) has issued new compliance guidelines to enhance inverter connectivity security under the PM Surya Ghar program. To enhance grid security and data privacy, all inverter devices must utilize M2M SIM protocols, and their data will be stored on Indian servers through an MNRE-managed National Software Platform.

Singh said Deye is collaborating with the Ministry of New and Renewable Energy on a two-part solution to ensure data security: inverter data will be stored on Indian servers via loggers, and firmware updates will also be routed securely.

A notification regarding mandatory M2M SIM-based inverters is expected soon, but Singh warned that manufacturers will need at least six months to clear their existing inventory and conform to the new requirements.

Girish Ananthan, General Manager – Sales at Future Solar, warned that frequent changes to ALMM and domestic content requirements have created stop–and–go cycles for manufacturers. “For us to invest further, we need stable guidelines for at least 10 years,” he said. Investors cannot make heavy commitments to cell lines when policies shift every few months. He also pointed out that solar returns now clearly outpace traditional bank savings. “Earlier, people thought bank interest could pay their electricity bills. Today, solar is far more profitable.”

Harshal Akhouri, Co-founder at Strolar, said standardization in mounting structures is long overdue. Failures, he explained, often occur because engineering, procurement, and construction (EPC) contractors ignore manufacturer guidelines or cut corners on module frames, causing bolts to pull out during storms rather than structures failing. Designs need to account for wind speed, IS 875 codes, gust factors, and computational fluid dynamics analysis, while also being module-agnostic so last-minute supply changes can be handled.

“India is shifting toward fabrication-led suppliers instead of design-led firms,” he said. “That undermines quality and weakens our export competitiveness.”

Drawing on his EPC background, Ananthan said many new companies underestimate the complexity of system design, assuming it is just about “connecting plus and minus to the inverter.” He cited examples of clamp–frame mismatches, where EPC contractors ordered clamps for 35 mm frames but received modules with 30 mm frames, leading to failures. He stressed that cheap pricing drives bad practices. He urged EPC contractors to spend more time educating customers, even if that risks creating tougher conversations.

On trackers, Akhouri said adoption is increasing as modules cross 700 W, with customers seeing 15–20% generation gains. To keep costs in check, suppliers are using new high-tensile materials and bulk procurement and have already delivered projects in Gujarat with trackers. He emphasized that after-sales service is more critical than hardware pricing.

“In India, trackers should not be treated as a product but as a service. If a controller fails, downtime directly reduces generation, so local service presence is essential.” Adoption is happening faster in C&I projects than in utility-scale projects, where margins are thinner.

These issues were deliberated in detail at Mercom India’s RE Buyer-Seller Meet in Hyderabad recently.

Speakers agreed that battery storage demand is growing, especially in C&I and residential markets. Singh said sales of hybrid inverters with lithium batteries have surged in 2025 under the PM Surya Ghar program, and containerized battery energy storage systems could soon receive a 30% subsidy. He pointed out that sodium-ion research and development in Europe and China could further lower costs and noted that India’s exports also encourage manufacturers to integrate storage.

Ananthan referred to energy banking restrictions in some states that were forcing C&I customers to adopt batteries. He explained why batteries are more viable in Europe, i.e., high peak tariffs make storage attractive, while in India, the tariff gap is still too small. Replacing diesel gensets remains a strong driver, since diesel-generated power costs around ₹19 (~$0.215)/kWh.

Speakers stressed the importance of correct system sizing. Earlier, EPCs confused customers by quoting batteries of different capacities, 100 Ah vs 200 Ah, leading to poor performance and dissatisfaction. Now, suppliers are providing technical support to EPCs to ensure proper design, making adoption smoother.

Speakers agreed that the next opportunities lie in storage, round-the-clock and firm, and dispatchable renewable energy, high-efficiency modules, and e-mobility integration, but only if design-led supply chains, policy stability, and sustained research and development investment keep pace.