India’s solar photovoltaic manufacturing landscape has undergone a significant transformation over the past few years, with a rapid scale-up in module production capacity and the beginning of vertical integration in upstream supply chains. Many new players have forayed into this space while older players are ramping up their module and cell manufacturing lines, driven by a range of tariff and non-tariff incentives. However, it may take a few years for the domestic industry to develop the capabilities needed to meet the growing demand. Until then, the sector will remain dependent on imports. In this context, leading manufacturers in the solar industry discuss the state of the sector, the key issues and the outlook for the future…
What trends do you anticipate in the renewable energy manufacturing sector in the coming years?
Anurag Garg, CEO, Jakson Solar Modules and Cells Business
The global solar industry is rapidly advancing in both capacity and manufacturing innovation. I am proud of the remarkable progress we are seeing, especially in India, with solar capacity surpassing the 90 GW mark as of October 2024. High-efficiency technologies such as N-type TOPCon and HJT cells are setting new benchmarks, accelerating capacity expansion towards our 2030 targets. A critical part of this transformation lies in vertical integration and the strengthening of local supply chains, enabling energy independence while reducing reliance on imports and supporting India’s renewable energy ambitions.
At Jakson Solar, we are actively supporting this growth. Our 1.2 GW manufacturing facility produces both TOPCon and mono-PERC modules, and we recently introduced a high-efficiency 630 Wp module with rectangular TOPCon cells, delivering 40-50W more per module and optimising system costs. We are expanding this capacity to 2 GW by mid-2025 and have initiated solar cell production with a 2.5 GW TOPCon line, with plans to scale to 5 GW over the next few years. We are also exploring wafer production to further reinforce our supply chain, aligning with our commitment to strengthening India’s leadership in renewable energy manufacturing.
Rajeev Kashyap, SVP and GM, Nextracker India, Middle East and Africa
In the coming years, the renewable energy manufacturing sector is expected to witness significant growth and transformation. We anticipate a substantial increase in manufacturing capacity across various segments, including solar panels, wind turbines and energy storage systems, driven by both domestic and global demand. Advanced technologies, such as solar trackers and software, will play a crucial role in improving efficiency and performance, enabling optimised energy capture and levellised cost of energy.
Additionally, we expect greater incentives for the production of renewable energy electronics and plant management tools with cutting-edge solutions for energy management and grid integration. As global supply chain challenges continue, manufacturers are focusing on building more resilient and localised supply chains, enhancing domestic production capabilities, and ensuring greater stability and long-term return on investment. These trends will not only propel the sector’s growth but also contribute to a more sustainable, self-reliant and innovative renewable energy industry.
D.V. Manjunatha, Managing Director and Founder, Emmvee Group
In terms of technology, we are already producing TOPCon modules at full scale, and we were one of the first ones to have the necessary certifications for these. Most of our present production is based on TOPCon. TOPCon will continue to dominate in the near future, and the technology is also expected to evolve.
In terms of market opportunities, the utility-scale solar space is extensive, but now rooftop is also growing at a very fast pace. Currently, 80-90 per cent of our focus is on catering to the utility-scale market, but we are also exploring the commercial and industrial, and residential rooftop
solar markets.
We have plans to achieve 20 GW of module manufacturing capacity by 2030 along with 20 GW of cell and 5 GW of wafer manufacturing capacity. Our total portfolio currently is 5 GW of module and 2.5 GW of TOPCon cell manufacturing capacity. This capacity is at a single location in Bengaluru. The company has had an interesting growth story from manufacturing solar water heaters to PV, which we started doing in 1992.
Shailesh Vaidya, Chief Executive Officer, Scorpius Trackers
We did our first MW-scale project around 2017 and so far, we have completed projects of around 1 GW in India along with a few projects in Japan, the Middle East and Africa. Our solution is high-tech and equipped with features such as internet of things, cloud and real-time tracking.
However, India is a very small market for solar trackers, accounting for about 1.5 GW to 2 GW of trackers per annum. Comparatively, the US accounts for about 35 GW a year – 10-15 times the Indian market. This is mainly due to the price sensitivity in India and the lack of customer awareness regarding the benefits of trackers. Fortunately, this trend is changing, especially over the last two years with battery storage and green hydrogen coming into the picture, as trackers enable maximum generation throughout the day. Thus, tracker growth in India is now at 40-50 per cent per year.
How are global supply chains transforming and how does it impact manufacturers?
Anurag Garg
I believe the global solar supply chain is transforming through increased localisation and vertical integration. In India, we are adapting by focusing on the domestic production of key components such as solar cells, modules, wafers, frames and glass. This helps reduce our reliance on imports and mitigates supply chain disruptions. India’s push towards local manufacturing in solar energy is a game changer for the country, creating jobs, reducing reliance on imports and driving innovation in renewable energy. This transformation will empower India to become a global leader in solar manufacturing.
Rajeev Kashyap
Global supply chains are undergoing significant shifts, driven by heightened volatility, fluctuating costs and evolving geopolitical dynamics. These challenges have exposed vulnerabilities in heavily globalised supply networks, particularly for industries dependent on stable, long-term supply and pricing structures.
To address these challenges, many manufacturers, including Nextracker, are adopting localisation strategies. With the capability to source up to 95 per cent of materials domestically, Nextracker is effectively mitigating risks associated with international supply chain disruptions while efficiently managing production costs. These benefits extend to solar power plant developers and engineering, procurement and construction partners. This localised approach not only strengthens resilience against global volatility but also contributes to a more robust and self-reliant domestic manufacturing ecosystem and reduces project carbon footprints.
However, for these localisation efforts to be fully effective, a parallel investment in infrastructure is crucial. Enhanced logistics, storage facilities and transportation networks are needed to ensure the efficiency and reliability of localised supply chains. By building a more resilient infrastructure, manufacturers can better navigate global uncertainties, streamline production processes, and contribute to a stronger, more sustainable manufacturing sector.
D.V. Manjunatha
There was virtually no demand in India in the PV space when we started our PV manufacturing business, and much of the demand came from Europe. At that time, there was no competition from China too, and we completely exported our products to Europe and Canada. Currently, we are exporting 2-5 per cent, and the rest is being used to meet the domestic demand.
Today, 95-98 per cent of our production meets India’s growing domestic demand, with 2-5 per cent allocated to exports. Indian products are increasingly competitive in markets with trade barriers, such as the US, where our solutions continue to perform well. However, Chinese pricing strategies remain a challenge in markets without such trade restrictions.
Shailesh Vaidya
As the US is a pretty mature market, we have incorporated Scorpius Trackers there, with a sales office to begin with. There are 8-10 bankable tracker companies globally, and Scorpius Trackers is the only tracker company from India. So, I think we stand a good chance to make a name in the US market. Solar tracker companies have been reporting good numbers globally.
In the US, strong market dynamics drive the installation of solar projects regardless of policy support. On the manufacturing side, we will produce and supply steel components domestically in the US, with only 30 per cent of the technical parts being sourced from India.
By 2028, we hope to hit about 2 GW per annum in the US and anywhere between 500 MW and 2 GW in India. Another market of interest for us is the Middle East, and we have an office as well.
What has been the impact of key policy measures that promote local manufacturing? What more needs to be done?
Anurag Garg
India’s policy measures, including the production-linked incentive (PLI) scheme, basic customs duty (BCD) on imported solar panels/cells and the Approved List of Models and Manufacturers (ALMM), have significantly boosted domestic solar manufacturing. These policies encourage local production, ensure quality standards and promote self-reliance in the solar sector. At Jakson Solar, we are aligned with these initiatives, expanding capacities and enhancing vertical integration.
To sustain growth, we must address challenges such as skill development, as the current workforce is insufficient for the industry’s expansion, particularly in solar panel/cell manufacturing.
Additionally, focusing on capital equipment production is critical to achieve self-sustainability and reduce import reliance. These efforts will position India as a global leader in renewable energy manufacturing.
Rajeev Kashyap
Key policy measures, such as PLI schemes, are promoting local manufacturing, particularly in sectors like PV capacity. These policies spur growth in the renewable energy sector by incentivising domestic production, reducing reliance on imports and fostering innovation. Similar schemes, however, could benefit other commodities and sectors to create a more comprehensive and competitive manufacturing ecosystem.
To become self-reliant in manufacturing, India must focus on localising the entire supply chain, starting from the production of raw materials. Policies should not only focus on individual sectors but also foster a complete, integrated ecosystem for manufacturing, including job creation. This includes enhancing the capacity of local suppliers, improving the quality of raw materials and facilitating operations across all stages of production.
Policy implementation must extend beyond larger companies to ensure that smaller players also benefit from these initiatives. This can be achieved by prioritising and incentivising innovation and providing support to smaller manufacturers in terms of technology access, financing and market linkages.
The duty structure requires further rationalisation. The current tariff system should be optimised to ensure that the end customer has access to the best technologies at the most competitive prices, which will ultimately drive growth across the sector. The higher cost of local raw materials, even after factoring in the landing costs of imports, compels manufacturers to opt for imported materials when producing goods for export.
Finally, there is a need to create more dedicated manufacturing hubs across the country, fully utilising Make in India frameworks, particularly focused on renewable energy manufacturing. India can take inspiration from the clean energy manufacturing renaissance in the US under the Inflation Reduction Act. These hubs should be supported by attractive incentives such as tax breaks, subsidies on utilities and access to infrastructure, which encourages investment and ensures the long-term success of the sector. By addressing these areas, India can continue to strengthen its local manufacturing capabilities, reduce dependency on imports, and position itself as a global leader in manufacturing and innovation.
D.V. Manjunatha
Government initiatives such as BCD and the domestic content requirement have played a critical role in enabling local manufacturing, including our strategic entry into cell production. ALMM for modules has been a positive step, and extending this framework to include solar cells will encourage the industry to add local cell manufacturing capacity and reduce dependency on imports.
To enhance policy effectiveness, we recommend shifting from percentage-based import duties on solar cells to a per watt peak structure. This would uphold the duty’s effectiveness despite changes in the pricing.
Shailesh Vaidya
From a tracker perspective, steel accounts for 70-80 per cent of the cost. Thus, the majority of the manufacturing is already being done in India as far as making trackers is concerned. We do not need a Make in India kind of policy for trackers. What we need is for tracker usage to be made compulsory for solar projects. Since last year, NTPC has floated tenders for around 5 GW, based only on trackers and no fixed tilt. The land required for trackers might be just 10 per cent more than non-tracker projects. The project capex increases by 10 per cent when you use trackers, and the energy gain increases by 25 per cent. Thus, we are now seeing greater adoption of trackers, especially for group
captive plants.
