With India facing electricity shortage coupled with the Ministry of New and Renewable Energy promoting the use of solar energy devices with a 30 per cent subsidy on solar products, water heater companies like Racold Thermo expect solar water heaters to become big growth drivers over the next few years, says a Times of India report.
“In the last two years, the market for solar water heaters has grown 15 per cent year on year,” Mathew Job, managing director, Racold Thermo said. The water heater market in India is pegged at Rs 12 billion, with electric heaters dominating the category accounting for half of the market and solar heaters a close second at Rs 4 billion. 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 2.5 billion during FY12 with solar water heater’s share standing at 23 per cent. In the next three years, the company expects this figure to move up to 33 per cent. Other major players in this segment include Tata Bp, Bajaj and Venus.