REPORT Confidential and proprietary APRIL 2025 © 1Lattice Pvt. Ltd. Foreword As the world moves towards more sustainable energy sources, solar power has emerged as a key solution. While much focus is placed on the solar panels themselves, the balance of systems (BoS) – which includes all the components, equipment, structures, and services required to make a solar photovoltaic (PV) system work – is equally important for the successful operation of solar energy systems. This report provides a detailed overview of the solar product balance of systems, covering the essential elements that support solar PV installations. It also presents a focused analysis of the solar products market in India, highlighting market size, growth Abhishek Maiti drivers, and key trends. In addition, we provide insights into the Director - Industrial goods & services, global solar products market, discussing its current outlook and Technology & Internet future potential. Our aim is to offer a clear understanding of the dynamics driving the solar products market, both in India and globally. By exploring the opportunities and challenges in this sector, this report seeks to guide stakeholders, including investors, businesses, and policymakers, in making informed decisions in the rapidly growing solar energy industry. Product in Spotlight: Curated by 1nsights , the report "Solar Unplugged: A Deep Dive into Balance of System Dynamics" provides an in-depth exploration of the solar PV balance of systems (BoS) market. From detailed market sizing and growth drivers to trends shaping the future across India and the globe, every insight is crafted to help businesses, investors, and policymakers make informed decisions. Packed with forward-looking analysis and projections up to CY29, this report by 1Insights empowers you to navigate the evolving solar energy ecosystem with confidence. Explore the future of solar, powered by 1nsights. Table of Contents Solar products: India market Global market Overview outlook scenario 01 02 03 Executive summary Solar products India solar Global solar overview products market products market • Solar PV balance of system • India solar PV balance of system • Global solar PV balance of encompasses all components, market was valued at ~US$ 3B in CY24 system market was valued at equipment, structures, & services & is expected to be valued at ~US$ 7B ~US$ 60B in CY24 & is expected required to make a solar PV system by CY29 , growing at a CAGR of ~16% to be valued at ~US$ 100B by operational, excluding the PV during the period. The key growth CY29 , growing at a CAGR of ~10% panels themselves drivers are during the period. The key growth - It serves as a catch-all term for drivers are - The government’s aim for 500 GW the essential infrastructure that of non-fossil capacity by CY30 & - Renewables will account for supports, complements, and renewable electricity generation ~95% of capacity increase, integrates the solar panels share to be 50% of the total driven by stronger within grid-tied or off-grid electricity generation government policies & systems ambitious clean energy goals - Rapid population growth & • Key components of a solar PV economic development are - Global renewable electricity balance of systems are leading to a surge in energy capacity are projected to - Inverter demand grow ~60% by CY26, with solar PV contributing more than half - Racking & mounting system • PM – KUSUM, Grid Connected Rooftop Solar programme, Delhi Solar Energy • The balance of system market - Tracker Policy are some of the key policies landscape consists of incumbent - Wiring & cables implemented by the government as players like ABB & Waaree - Combiner box part of their aim to boost India's solar Energies operating across installation multiple product categories, - Circuit breakers & fuse while new players like Loomsolar • Rapid growth in solar installation, - Monitoring & control system & Livguard focusing on a limited technological advancements & focus - Charge controller range of products on domestic manufacturing are some - Batteries of the key trends in the industry © 1Lattice | 05 Solar products: 01 Overview Definition of solar PV balance of system BOS comprises of all components in a solar PV system (excluding the panels) which include mounting systems, batteries, wiring, & other essential equipment Key components of solar PV balance of system Definition of Product Function Importance solar PV balance 3 • Converts DC power from panels to • Ensures compatibility between solar PV of system 4 Inverter AC power system & electrical grid Racking & • Provides a sturdy structure for panels • Ensures proper alignment, stability, support 1 • BOS encompasses mounting system • Secures panels to roof or ground & safety all components, • Maximizes solar radiation collection equipment, • Improves sunlight absorption capabilities Tracker efficiency structures, & services required to • Connect panels, inverter, & other • Proper wiring minimizes power losses & make a solar PV2 Wiring & cables components ensures efficient electricity transmission system operational, excluding the PV • Combines multiple PV strings into a • Allows multiple solar panels to be Combiner box panels themselves single circuit combined in parallel • It serves as a • Protect devices from catching fire or being Circuit breakers catch-all term for • Protect systems in fault conditions damaged if there is a short circuit & fuse the essential infrastructure that Monitoring & • Provides real-time insights into • Analyzes system performance & identifies supports, performance of solar PV system potential areas for improvement control system complements, and integrates the solar • Prevents overcharging • Regulates flow of electricity from solar panels within • Ensures optimal battery performance & Charge controller panels to batteries grid-tied or off-grid longevity systems • Provide optional backup for grid-tied • Store energy produced by PV panels Batteries systems in case of a power outage • Include conduits, conductors, battery • Ensure protection and optimal use of Miscellaneous management system, etc. equipment components 2 3 4 Note(s): Balance of system, photovoltaic, direct current, alternating current © 1Lattice | 07 Source(s): Industry publications, media articles, 1Lattice analysis Upstream solar value chain Upstream solar manufacturing involves processing & purification of raw material, wafer & cell fabrication, module assembly & system integration Upstream value chain for solar manufacturing Raw Processing & Wafer & cell Module System material purification fabrication assembly integration Sand Raw silicon Wafer Cell Crystalline module High purity silicon Recycle Si waste from wafer cutting 1 Silane Array Deposit Structure Laminate, Photovoltaic material photovoltaic substrate on frame & Thin-film module (Amorphous material on glass into cell connections silicon, cadmium glass / plastic sections added telluride, others) Note(s): Used to deposit thin layers of amorphous silicon or microcrystalline silicon © 1Lattice | 08 Source(s): Industry publications, media articles, 1Lattice analysis Downstream solar value chain Downstream solar value chain involves distribution, project development, designing, engineering & construction activities Downstream value chain for solar Wholesale & distribution Inverters Racking & mounting systems Trackers Project Designing, engineering development & construction Array Charge controllers Solar energy • Project planning & • Technical planning, system pre-construction specification, & Monitoring & control systems activities physical construction of • Encompasses site Batteries complete solar assessment, energy system permitting, financial analysis, • Selecting Combiner box system sizing, & appropriate other components like Wires & cables development work panels, inverters, etc. Circuit breakers & fuses Solar PV balance of system Source(s): Industry publications, media articles, 1Lattice analysis © 1Lattice | 09 India market 02 outlook India market size India solar PV balance of system market is estimated to reach ~US$ 7B in CY29 from ~US$ 3B in CY24, growing at ~16% CAGR during CY24-29 India solar PV balance of system market Key growth drivers is expected to grow at ~16% CAGR from ~US$ 3B in CY24 to ~US$ 7B by CY29 Government policies & initiatives 1 • India aims for 500 GW non-fossil capacity by CY30 & 50% renewable electricity generation share India solar PV balance of system market • Commitment to renewable energy is expected to significantly boost 2 (US$ B, CY24-29P*) investments in solar projects, driving demand for BOS components Increasing energy demand • Rapid population growth & economic development in India are leading to a surge in energy demand • Rising demand drives the need for renewable energy expansion, CAGR particularly solar power, boosting adoption of BOS components 16.4% 6.5 6.0 Support for rooftop solar installations 5.4 • Favorable policies like net metering & subsidies are driving solar 4.9 adoption in residential & commercial sectors 4.5 • Rooftop solar segment is anticipated to witness growth, contributing to the overall demand for BOS components 3.0 Export opportunities • India's growing solar market, with exports reaching INR 880 Cr (~US$ 105M) in CY24 & US as its largest market, boosts opportunities for the BOS sector - Drives local manufacturing & innovation to meet domestic & global demand Technological advancements • Continuous improvements in solar technology enhance system CY24 CY25P CY26P CY27P CY28P CY29P efficiency & grid integration capabilities • Advancements reduce BOS component costs & improve performance, enhancing solar energy's viability for consumers 1 2 Note(s): Gigawatt, balance of system © 1Lattice | 11 Source(s): Industry publications, media articles, 1Lattice analysis Government policies Government schemes aim to boost India's solar installation with initiatives like PM-KUSUM and Delhi Solar Energy Policy Schemes Government schemes for solar installation • Aims to solarize agricultural practices in India, improving energy & water security through 1 2 decentralized solar power plants on farmers' land (10K MW target) PM –KUSUM scheme • Provides significant financial support to farmers, including up to 30% central assistance for solar installations (increasing to 50% in specific regions) • Targeting a cumulative installed capacity of ~40K MW from grid-connected rooftop solar projects 3 Grid Connected along with financial assistance of INR 18K/kW for the first 3 kW capacity, and INR 9K/kW for Rooftop Solar additional capacity up to 10 kW programme • Financial assistance is available only if the installed modules and cells within the modules are manufactured in India • Delhi Solar Energy Policy 2023 aims to expand the city's solar capacity to 4,500 MW by FY27 • Target includes 750 MW of rooftop solar within Delhi and 3,750 MW of utility-scale solar from Delhi Solar outside the city Energy Policy • Policy offers financial incentives, including generation-based incentives for residential 4 installations along with supporting RESCO model, enabling solar adoption without upfront capital investment • Government will subsidize installation of solar panels for 1Cr households , supporting residential PM Surya Ghar rooftop solar setups & solar energy usage for electricity Muft Bijli Yojana • Subsidy will cover ~40% of installation costs, enabling poor & middle-class households to save between INR 15K-18K Cr annually 1 2 3 4 Note(s): Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan, megawatt, kilowattt, renewable energy service company © 1Lattice | 12 Source(s): Industry publications, media articles,1Lattice analysis Key trends India's solar manufacturing and installation is expanding rapidly, driven by integration with green energy goals, innovation, & growing investments • Installed solar energy capacity has increased by ~26 times in the last ~9 years & stands at ~97.7GW as of 1 CY24; In CY24, India has added ~24.5GW of solar power capacity Rapid growth in solar installation • India's solar industry is experiencing significant growth, presenting substantial opportunities for the Balance of System (BOS) space • Integration of AI & ML is optimizing operations, reducing maintenance costs, & improving system performance, enhancing performance of BOS components Technological 2 3 4 advancements • Increased adoption of high-efficiency solar cells & advanced technologies like monoPERC , TOPCon , & HJT modules • Policies such as the basic customs duty & approved list of models & manufacturers are encouraging local production Focus on domestic manufacturing • These initiatives collectively aim to bolster India's self-reliance in solar PV BOS manufacturing, contributing to the country's renewable energy targets & economic growth • BOS component integration is key to India's green energy goals, with the government enhancing their quality & Integration with availability to support renewable targets green energy goals • India's goal of 450 GW renewable energy by CY30 is supported by initiatives like the PM KUSUM Yojana to promote solar energy in agriculture • India's renewable energy sector is set to attract over ~US$ 250B in investments, with solar PV projects expecting ~US$ 15.5B in investments Growing investments • Demand for BOS components like inverters, mounting structures, & electrical components will increase to support the scaling of solar installations 1 2 3 4 Note(s): Gigawatt, monocrystalline passivated emitter & rear cell, Tunnel oxide passivated contact, heterojunction technology © 1Lattice | 13 Source(s): Industry publications, media articles, 1Lattice analysis Case study: Loomsolar Loom Solar provides solar panels, inverters, batteries, & a wide range of other products, complemented by various support services Portfolio Headquarters Revenue Total funding Inception Manufacture solar Haryana, US$ 18M panels, inverters, and US$ 2M 2018 India (FY24) lithium batteries Manufacture cutting-edge solar panels, inverters, & lithium batteries, catering to both residential & commercial needs Overview Key products Footprint Timeline Lithium battery Energy storage system Solar inverters 1 • ISO 9001 - 2015 Certified Started as e-commerce to 2018 2 3 • 250 MW PV module sell solar products online Off grid solar system On grid solar system Solar panel manufacturing capacity Introduced 100% • 3,000 units inverters & battery 2019 monocrystalline PV testing facility Others Services modules • 50,000+ customers Offering Description • 100M people reach and 1,000 Partnered with Enphase 2020 5 master franchise Energy USA • Engineers are dispatched to customer's location to • 2 manufacturing unit with Introduced bifacial solar conduct a comprehensive site survey 4 Site survey 2021 in-house R&D facility PV module • Ensures seamless & efficient solar installation Launched generation • Offer financing solutions in collaboration with leading 2022 Key competitors 7 energy storage NBFCs , private banks, & government- owned banks Finance • Introduced financing model enabling customers to Launched N-type TOPCon pay through monthly EMIs 2023 6 16BB solar PV module • Provides instant digital support through video calls, Awarded one of the fastest ensuring prompt assistance & resolution of customer 2023 growing brand in India by concerns Customer Inc42 Service • Resolves complaints efficiently within a timeframe of 3 to 7 days, ensuring a high standard of service delivery 2 3 4 5 6 Note(s): International Organization for Standardization, megawatts, photovoltaics, research and development, United States of America, busbar, non-banking financial company © 1Lattice | 14 Source(s): Company website, Tracxn, 1Lattice analysis Global market 03 Scenario Global market size Global solar PV balance of system market is estimated to reach ~US$ 97B in CY29 from ~US$ 59B in CY24, growing at ~10% CAGR during CY24-29 Global solar PV balance of system market Key growth drivers is expected to grow at ~10% CAGR from ~US$ 60B in CY24 to ~US$ 100B by CY29 Increase in renewable energy investments • Global renewable electricity capacity projected to grow ~60% by CY26, 1 with solar PV contributing more than half Global solar PV balance of system market • Renewables will account for ~95% of capacity increase, driven by stronger (US$ B, CY24-29P*) government policies & ambitious clean energy goals Government support & incentives • Governments worldwide are implementing supportive policies & incentives to promote deployment of solar power systems • Includes initiatives for both utility-scale & distributed solar projects, which 2 directly increase demand for BOS components CAGR 96.8 10.4% 87.8 Cost competitiveness of BOS components 78.9 • As solar module prices stabilize, attention is turning to reducing BOS costs, which can constitute 10-50% of total solar installation expenses 71.6 • Shift is crucial for maintaining economic viability in solar projects, thereby 65.1 driving demand for efficient BOS solutions 59.1 Future capacity additions • Future capacity additions offer significant opportunities for BOS suppliers , with these components comprising one-third of solar project costs • With projections indicating the BOS market’s growth, businesses can capitalize on such opportunities Technology advancements • Tech advances improve BOS performance & cost, boosting competitiveness with traditional energy CY24 CY25P CY26P CY27P CY28P CY29P • Software & design innovations cut costs with efficient mounting & racking systems reducing installation time 2 Note(s): Photovoltaics, balance of system © 1Lattice | 16 Source(s): Industry publications, media articles, 1Lattice analysis Market landscape ABB & Waaree Energies operate across multiple product categories, while new players like Loomsolar & Livguard focus on a limited range of products Balance of system Racking & mounting Miscellaneous Inverters Batteries Charge controllers structures components Note(s): New-age players are those incorporated post 2010; Indicative list of players (not exhaustive) © 1Lattice | 17 Source(s): Company website, press releases, 1Lattice analysis Case study: ABB ABB Group focuses on engineering solutions & offers various solar products such as inverters, mounting systems, energy meters, charge controllers, & more Portfolio Revenue I ndustrial technology Inception Headquarters Total funding products for customers in US$ 33B Switzerland 1988 US$ 385M utilities, industry, transport (CY24) & infrastructure • Global engineering company that develops & provides automation & power technologies Overview • Formed from the merger of ASEA of Sweden & BBC of Switzerland Footprint Timeline Solar product offerings • ABB’s predecessor companies, ASEA of Inverters Mounting systems • Operations in 100+ countries 1883-1939 Sweden & BBC of Switzerland founded • ~180 manufacturing sites globally Circuit breakers & fuses Combiner box 3 • ASEA pioneered HVDC transmission • 1L+ employees 1940-1969 • BBC launched transformative • ~140 years of experience Energy meters Lithium-ion batteries technologies for industry & rail • ~US$ 1.3B investment on R&D Monitoring & control 1 • ASEA & BBC of Switzerland entered Wires & cables • ~80% reduction in scope 1 & 2 GHG 1970-1987 systems robotics automation emissions since 2019 2 • ~17% operational EBITA margin • ASEA & BBC merged to form ABB 1988-1999 Industries served • Acquired for strengthening: Automotive Battery Business areas - Industrial motion: Baldor Electric 2000-2018 - US electrification: Thomas & Betts Chemical Cement & glass Motion Electrification - Machine automation: B&R Data centres Food & beverage - Electrification: GE Industrial Solution Robotics & discrete Process automation automation Life sciences Marine • Sold a majority stake in its power grids business to Hitachi Metals & mining Oil & gas • Launched the world’s fastest electric Key competitors 2019- car charger present Power generation Paper & printing • Spins off its turbocharging division, creating a new company Accelleron, Railways Water & wastewater focusing on electrification & automation 2 3 Note(s): Greenhouse gases; Earnings before interest, taxes & amortization; high-voltage direct current © 1Lattice | 18 Source(s): Company website, Tracxn, 1Lattice analysis Authors Fanindra Tibrewal Abhishek Maiti Project Manager Director - Industrial goods & services, Technology & Internet E: fanindra.tibrewal@1lattice.com E: abhishek.maiti@1lattice.com For media queries, Urbashree Bayan Associate Manager – 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