Solar Module Manufacturing in India: Scope and Opportunities for Indian Manufacturers

India’s Ambitious Renewable Energy Targets Drive Growth of Solar Module Manufacturing Sector

India is one of the fastest-growing solar markets in the world, and the country is also rapidly expanding its solar module manufacturing capacity. In 2023, India had a solar module manufacturing capacity of 38 GW, and this is expected to increase to 110 GW by 2026. This would make India the world’s second-largest solar module manufacturer, after China.

The growth of India’s solar manufacturing sector is being driven by a number of factors, including:

  • The government’s ambitious renewable energy targets: India has set a target of achieving 500 GW of installed renewable energy capacity by 2030, and solar is expected to play a major role in meeting this target.
  • Supportive government policies: The Indian government has introduced a number of policies to support the growth of the domestic solar manufacturing sector, such as the Production Linked Incentive (PLI) scheme and the customs duty on imported solar modules.
  • Increasing demand for solar energy: India’s demand for solar energy is expected to continue to grow in the coming years, driven by factors such as the rising cost of fossil fuels, the need to reduce carbon emissions, and the increasing popularity of rooftop solar installations.

The growth of India’s solar manufacturing sector is creating a number of opportunities for Indian manufacturers. These opportunities include:

  • Meeting the growing domestic demand for solar modules: Indian manufacturers can meet the growing domestic demand for solar modules, which is expected to exceed 50 GW per year by 2026.
  • Exporting solar modules to other countries: Indian manufacturers can export solar modules to other countries, such as the Middle East, Africa, and Southeast Asia, where the demand for solar energy is also growing rapidly.
  • Investing in upstream solar manufacturing: Indian manufacturers can invest in upstream solar manufacturing, such as the production of polysilicon, wafers, and cells. This would help to reduce India’s dependence on imported solar components.

Latest Data and Reports on Solar Module Manufacturing in India

  • According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research, India’s solar PV module capacity is set to reach 110 gigawatts (GW) by 2026.
  • The report also states that India is likely to achieve self-sufficiency in solar module manufacturing by 2026, and that the country will be able to target the export market aggressively.
  • A report by Mercom India Research states that India’s solar module manufacturing capacity increased by 130% in 2022, to reach 38 GW.
  • The report also states that Indian solar manufacturers are increasingly focusing on high-efficiency modules, and that the country is now exporting solar modules to over 50 countries.

India’s solar manufacturing sector is growing rapidly, and Indian manufacturers have a number of opportunities to capitalize on this growth. By meeting the growing domestic demand for solar modules, exporting solar modules to other countries, and investing in upstream solar manufacturing, Indian manufacturers can play a major role in making India a global leader in the solar industry.

reference : IEEFA REPORT