India Energy Performance Contracting Market

India Energy Performance Contracting Market Overview:

The India energy performance contracting market size reached USD 1.37 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2.57 Billion by ​2033​, exhibiting a growth rate (CAGR) of 7.20% during ​2025-2033​. The market is witnessing significant growth, driven by the widespread adoption of energy-efficient solutions and government incentives and regulatory support. Extensive research and development (R&D) activities, along with growing concerns over energy efficiency are creating a positive outlook for the market.

India Energy Performance Contracting Market Trends:

Growing Adoption of Energy-Efficient Solutions

Energy efficiency is becoming paramount for many organizations that are seeking to save on energy for cost reduction, among other things. The provision of more energy-efficient solutions by EPC, is an emerging phenomenon in the market of energy performance contracting in the country where, energy costs are ever rising. Stringent government regulations on the one side and the call for sustainability adoption in almost all the industries are driving slight significant changes in most organizations, considering energy efficiency as an effective way of optimizing energy and reducing operational costs. This has given the advantages to EPC service providers in India, and there is an increased quest for them because many industries are implementing tailor-made energy-saving projects. The core operations of these projects usually focus on the following technologies: LED lighting, energy-efficient HVAC systems as well as building automation systems that could help bring down energy consumption. The market opportunity to have efficient energy consumption solutions is even more important in sectors that consume huge quantities, such as those of manufacturing, commercial buildings and the likes. For instance, in February 2025, as per industry reports, South India represented 40% of India’s total HVAC demand, with Bengaluru contributing 20%. The city is a key hub for smart controllers and innovative HVAC technology advancements. These sectors are increasingly partnering with EPC service providers to achieve energy reduction targets and comply with environmental regulations. The integration of smart meters and IoT technologies is also enhancing energy performance management, enabling real-time monitoring and predictive analytics. As energy efficiency becomes more embedded into business strategies, the EPC market is expected to continue growing, offering substantial opportunities for service providers and energy technology companies in India.

Government Incentives and Regulatory Support

Another major trend shaping the Indian energy performance contracting market is the significant role of government incentives and regulatory support. The Indian government has been instrumental in promoting energy efficiency across various sectors by implementing policies that encourage energy performance contracting. Through initiatives like the Energy Conservation Building Code (ECBC), energy performance standards, and the PAT scheme under the National Mission for Enhanced Energy Efficiency (NMEEE), the government is creating a favorable environment for EPC providers to offer their services. These regulatory frameworks are designed to foster a competitive market for energy-efficient solutions, allowing businesses to access financing options such as the Energy Efficiency Financing Platform (EEFP). Government initiatives not only provide financial support but also offer technical expertise and incentives, such as tax rebates and grants, to companies that pursue energy performance contracts. This has led to an increase in awareness and the adoption of energy-saving measures, particularly in industries that previously lacked the resources to invest in energy efficiency. For instance, in December 2024, as per industry reports, India's clean energy capacity surpassed 200 GW, with investments projected to double to $32 billion in 2025. Annual renewable capacity additions are expected to grow faster than any major economy by 2030. Moreover, the government’s push for reducing India’s carbon footprint and meeting international climate commitments has resulted in more stringent energy efficiency regulations. These factors, coupled with the rising focus on sustainability, are expected to continue driving growth in the energy performance contracting market, positioning India as a significant player in the global energy efficiency landscape.

India Energy Performance Contracting Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type, service type, and end user.

Type of Contract Insights:

• Shared Savings Contracts
• Guaranteed Savings Contracts
• Energy Supply Contracts
• Others

The report has provided a detailed breakup and analysis of the market based on the type of contract. This includes shared savings contracts, guaranteed savings contracts, energy supply contracts, and others.

Service Type Insights:

• Energy Auditing Services
• Implementation Services
• Measurement and Verification Services
• Others

A detailed breakup and analysis of the market based on the service type have also been provided in the report. This includes energy auditing services, implementation services, measurement and verification services, and others.

End User Insights:

• Commercial
• Industrial
• Residential
• Government
• Institutional

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes commercial, industrial, residential, government, and institutional.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Energy Performance Contracting Market News:

• In December 2024, Waaree Renewable Technologies Ltd (WRTL) announced receiving its largest order to date, securing a 2 GW solar project from Sunbreeze Renewables Nine Pvt Ltd, a Special Purpose Vehicle (SPV) of Jindal Renewables. The project, located in Bikaner, Rajasthan, will incorporate advanced technologies and sustainable solutions for clean energy generation.

India Energy Performance Contracting Market Report Coverage:

Key Questions Answered in This Report:

• How has the India energy performance contracting market performed so far and how will it perform in the coming years?
• What is the breakup of the India energy performance contracting market on the basis of type?
• What is the breakup of the India energy performance contracting market on the basis of service type?
• What is the breakup of the India energy performance contracting market on the basis of end user?
• What is the breakup of the India energy performance contracting market on the basis of region?
• What are the various stages in the value chain of the India energy performance contracting market? 
• What are the key driving factors and challenges in the India energy performance contracting?
• What is the structure of the India energy performance contracting market and who are the key players?
• What is the degree of competition in the India energy performance contracting market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India energy performance contracting market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India energy performance contracting market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India energy performance contracting industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.