According to reports, with India facing electricity shortage coupled with the ministry of new and renewable energy promoting the use of solar energy devices with a 30% subsidy on solar products, water heater companies like Racold Thermo expect solar water heaters to become big growth drivers over the next few years.
“In the last two years, the market for solar water heaters has grown 15% year on year,” Mathew Job, managing director, Racold Thermo said. The water heater market in India is pegged at Rs 1,200 crore, with electric heaters dominating the category accounting for half of the market and solar heaters a close second at Rs 400 crore. Several state governments have made it mandatory to use of solar water heaters, driving heater sales.
With industrial establishments and residential projects opting for solar water heating solutions, players like Racold see lot of potential for the segment. “The solar water heater segment is our fastest growing category,” Job said. Racold clocked revenues of Rs 250 crore during FY12 with solar water heater’s share standing at 23%. In the next three years, the company expects this figure to move up to 33%. Other major players in this segment include Tata Bp, Bajaj and Venus.