By Prashant Mathur, Chief Executive Officer, Saatvik Solar
India has emerged as a global leader in the solar photovoltaic (PV) market, driven by its ambitious goal of achieving 280 GW of solar capacity by 2030. With vast reserves of sunlight and a strong commitment to renewable energy, the country is well-poised to lead the clean energy revolution. However, the real breakthrough lies not only in scaling up solar energy adoption but also in boosting domestic solar manufacturing, a sector where India has historically lagged.
The addressable market for solar cell manufacturing is set to expand 7-8 times by 2030, reaching 49-50 GW. This presents a promising opportunity for India to become a global hub for solar components. Yet, while the potential is immense, the path to realising it is fraught with challenges. From overcoming dependency on imports for upstream PV components like wafers and cells to enhancing local production of modules, India faces critical hurdles in scaling its solar manufacturing capabilities.
Challenges facing India’s solar manufacturing
The Indian market continues to rely heavily on imports, particularly solar cells, with the majority of imports coming from China. This over-reliance on China and lack of manufacturing capabilities in India for cells and other raw materials stifles the creation of indigenous manufacturing capacity and exposes the supply chain to geopolitical conflicts, price volatility, and trade restrictions. In India, the inadequate supply chain ecosystem for key raw materials such as polysilicon and wafers are still at a nascent stage resulting in increased costs for manufacturers and leading to delays in scaling of production.
Aside from depending on imports, another key impediment frequently faced by Indian manufacturers is the adoption of new cutting-edge technologies such as high-efficiency solar cells and advanced enhanced technologies such as N-TOPCon and Heterojunction (HJT). With little R&D facilities and expertise in technology, India undoubtedly requires additional development. Solar manufacturing set-up and scaling require huge investment and financial expenditure for production facilities, R&D, and quality control. Still, the majority of Indian manufacturers continue to struggle to secure affordable long-term financing schemes.
Another major challenge that Indian manufacturers face is the government’s policy and regulatory gaps. Post the launch of the Atmanirbhar Bharat Abhiyan, the government approved the production-linked incentive (PLI) scheme in April 2021 to promote the domestic manufacturing of competitive solar PV modules. However, ambitious plans of the domestic manufacturers and concerted efforts to boost upstream production of materials like wafers and ingots have not yielded positive results. The implementation of the policy at the grassroots level is often delayed and inconsistencies in policies across states present a significant challenge for the industry.
Opportunities in solar manufacturing space
Although the industry continues to battle these challenges, they also present boundless opportunities, particularly with the rapidly growing demand in the Indian market. The rise in large-scale solar parks and rooftop solar installations creates a sustained demand for solar modules and supporting products. With the government focus on the rise, several initiatives and support policies have been introduced on the ground for supporting local content manufacturing. PLI scheme induction sets financial incentives for manufacturers setting up integrated solar manufacturing units in India.
With companies planning investments in R&D infrastructure, India will stand strong at the global level competing with China and other countries seeking the potential to export products. As worldwide demand for solar components increases, India has the potential to become a major exporter, notably to Asia, Africa, and Europe. India’s geographical position, good trade agreements, and developing technology skills all contribute to its potential as a solar manufacturing powerhouse. With the industry’s rapid growth, domestic manufacturing is set to create numerous job opportunities in production and research, supporting India’s wider objective of increasing employment in the green sector.
Starting April 1, 2026, the Indian government’s mandate for sourcing all solar cells domestically marks a pivotal moment for the nation’s renewable energy landscape. This bold move challenges Indian manufacturers to elevate their standards, positioning the country not just as a solar energy consumer but as a global manufacturing leader. Further, the government’s impetus on domestic rooftop solar installation provides the industry with an additional area of opportunity wherein manufacturing can be scaled up to benefit several million households.
The potential for India’s solar component manufacturing sector is immense, bolstered by government support, growing market demand, and technological advancements. Yet, realising this potential requires overcoming significant hurdles, including reducing reliance on imports, bridging technology gaps, and addressing the challenge of high energy costs. The success of the industry will depend on robust collaboration between public and private sectors, along with sustained governmental backing. If these challenges are met, India will undoubtedly take rapid strides towards becoming a global powerhouse in solar manufacturing, driving not just national growth but contributing to the global energy transition.
