Sungrow Aims For Large Share Of Residential, Storage Segments in 2025

Sunil Badesra, Country Head (India and South Asia) for Global inverter leader Sungrow has reason to feel satisfied. Not only has the firm had a stellar 2024 in India, but the future looks even more promising thanks to the strong demand in the market, and a lineup of product offerings from Sungrow India. New launches in residential rooftop segment and Energy Storage where it has a strong global presence are especially promising for the firm in 2025. SaurEnergy caught up with Sunil at Sungrow India’s Gurugram office where he shared more details on the firm’s performance and plans for the year ahead.  You can catch up on the interview of Sunil,or read the abridged transcript below.

How has 2024 been for you, especially in comparison to 2023, which was a record-breaking year?

Sunil Badesra: 2024 has been a remarkable year, not just for Sungrow India but also for the entire inverter business. The achievements we’ve made this year are equivalent to what we accomplished over the last 8 to 9 years. We are now on track to surpass 13 GW (in just 2024), and Sungrow’s cumulative total in India will soon exceed 33 GW, with projections suggesting it will surpass 35 GW within this month.

The journey throughout 2024 has been promising, starting from the first quarter. January, February, and March showed exceptional growth, driven by strong market demand, and this momentum continued until October. Although there was a slight slowdown for a couple of months.

Could you provide a breakdown of your growth across segments?

Sunil Badesra: We are set to achieve 13 GW this year. The majority of this growth, around 70–75%, comes from the utility segment. The commercial and industrial (C&I) segment contributes about 15–20%, and the remaining portion comes from the residential segment.

The residential segment has been particularly strong this year, thanks to the PM Surya Ghar scheme, which has driven considerable demand. We expect this trend to continue in the coming years

How did the launch of PM Surya Ghar scheme expand the market?

Sunil Badesra: Absolutely. If we look back a year or two, the residential market was around 1–2 lakh inverters annually in India. This year, we expect that number to rise to 8–10 lakh inverters. This significant increase is directly attributed to the scheme. Sungrow has shifted its focus to the residential market this year, and we see tremendous potential for continued growth in this segment.

Beyond the PM Surya Garh scheme, what other factors have driven market growth this year, and is this growth sustainable?

Sunil Badesra: The primary driver for growth has been the utility segment, particularly because the government has set ambitious targets, such as achieving 300 GW by 2030. This has been a major motivating factor for everyone in the industry, including public sector undertakings (PSUs), which are also aligned with these goals.

Moreover, there have been significant technological advancements in the industry, especially with inverters. Inverters have become crucial for overall plant performance, offering both technological benefits and cost advantages

Have global reductions in module prices pressured the inverter market to reduce costs as well?

Sunil Badesra: Inverters represent around 5–6% of the overall plant cost. So, there is less pressure to reduce inverter prices. However, in India, the market is highly competitive, and every EPC (Engineering, Procurement, and Construction) company or Independent Power Producer (IPP) expects some form of cost benefit from each component used in a solar plant project. The inverter’s primary role is to optimize the Balance of Systems (BOS), and its contribution is more about system-wide cost optimization than simply reducing the price of individual units.

In the rooftop segment, where retail customers are growing, how important is branding? Do you think Sungrow can charge a premium as the market leader?

Sunil Badesra: India is a price-sensitive market, especially in the residential segment, where customers often look for affordability and reliability. While Sungrow may not offer the cheapest products, we focus on delivering high-quality, reliable inverters at a competitive price. We aim to meet customer expectations in terms of pricing and performance.

Our brand awareness is steadily increasing, and we are working to educate consumers on why Sungrow is a more reliable choice compared to other players in the market. Over time, we believe this focus on quality, reliability, and service will build stronger brand recognition in the residential segment.

How important is customer service in maintaining your market position?

Sunil Badesra: Customer service is absolutely critical. Sungrow has been in the Indian market for nearly 10 years, and over that time, many inverter companies have exited the market. The key to Sungrow’s longevity has been our commitment to service. Offering a good quality product is important, but without strong service support, a company can’t survive in the long term.

We are continuously expanding our service capabilities to ensure we meet customer expectations and maintain our reputation. As we grow, our focus on service remains a top priority because we know it directly impacts customer satisfaction and brand loyalty.

Are most inverter issues resolved remotely, especially in residential installations?

Sunil Badesra: In the residential segment, it’s often more difficult to provide on-site service for every individual household. However, with advancements in remote monitoring and support, many issues can be resolved remotely, which helps us maintain efficient service without the need for physical visits.

While challenges do arise, particularly due to varying quality in EPC work, we have systems in place to provide remote troubleshooting and service. This makes it more feasible to handle most issues remotely, which is essential in a country as vast as India.

Large tenders are increasingly focusing on storage solutions. How does this impact Sungrow?

Sunil Badesra: Sungrow is a global leader in both Battery Energy Storage Systems (BESS) and PV inverters. In India, we have established a dedicated team for BESS. The growth of the BESS market is driven by two key factors: maintaining grid stability, as more on-grid inverters are deployed, and the price reductions in BESS over the past year, making it more accessible.

Sungrow is well-positioned to capitalize on this growth, and we see BESS playing an increasingly important role in India’s energy future.

The recent tender bids have been aggressively priced. Are these numbers viable, or are companies entering the market by bidding very low?

Sunil Badesra: The pricing in these tenders is indeed aggressive, and while it is difficult to say whether these numbers are viable in the long term, it’s clear that developers and EPC companies are making strategic decisions when placing their bids. They are likely considering the future market trends and the risks associated with current pricing. It’s possible that some developers are betting on long-term cost reductions or other strategic advantages.

However, the tariffs in these tenders are certainly on the lower end, which could pose risks for the future.

What developments are you seeing in neighboring markets like Bangladesh, Sri Lanka, and Nepal that you manage as well?

Sunil Badesra: Sri Lanka’s market has picked up significantly after a slow start, and Bangladesh has experienced some disruptions, slowing its market temporarily. However, Nepal is showing promise, with several large tenders coming up. We are well-prepared to meet the opportunities in these markets and will continue to adapt as the situation evolves.

What are your top three predictions for 2025?

Sunil Badesra: In 2025, for the residential segment, we are expecting that the numbers will expand from the current 8-10 lakh inverters to maybe 15 lakh units. PM Surya Ghar scheme is going to give more boost to the industry. Second, due to the grid stabilization issues BESS is also likely to increase. I believe BESS is going to overtake the PV inverter business or at least, the two  businesses will go together. And for Green Hydrogen, we were expecting that hydrogen will pick up more compared to BESS. But it went the other way. Actually BESS has picked up but Green hydrogen has not. Third, we are also exploring the EV segment. We have some EV chargers also. Based on our reading, we might launch EV chargers as well in India

What are your manufacturing expansion plans?

Sunil Badesra: Currently, our manufacturing capacity is at 10 GW with a single shift. We are now establishing a new factory with a 25 GW capacity, and we plan to expand it to 50 GW if required by future market demand. Sungrow has always been a market leader in manufacturing capacity, and we remain committed to scaling up our production to meet the growing needs of the industry.