India’s solar manufacturing landscape has changed significantly over the past few years, owing to government impetus in the form of trade and non-trade related policies. Once a major importer of solar modules and cells, the Indian solar industry has made substantial progress in scaling up the country’s local manufacturing capabilities, with a massive ramp-up in module production and encouraging steps taken to expand cell capacities as well. However, much more needs to be done in the backward integration space to reduce imports and become self-reliant in the solar segment. First Solar, which set up its first solar manufacturing unit in India in 2023 with a 3.3 GW annual production capacity, is a unique example in this regard, being one of the few thin-film manufacturers of its scale globally. The only US-based company to receive production-linked incentives in India, it is now focusing heavily on the localisation of supply chains and process equipment, as well as adopting principles of circular economy in its manufacturing processes. In this interview with Renewable Watch, Sujoy Ghosh, Vice-President and Country Managing Director, India, First Solar, shared his perspective on the achievements in solar manufacturing, the challenges for domestic manufacturers, current technology trends and the way forward to scale up local manufacturing capabilities. Excerpts…
What have been the key hits and misses in India’s solar power segment over the past year?
India’s solar power segment has made impressive progress over the past year, but it continues to face some challenges. One of the most notable successes has been the growing adoption of hybrid power purchase agreements (PPAs) that incorporate battery energy storage systems (BESSs). This trend, along with an increasing preference among discoms for standalone BESS solutions, is helping stabilise renewable energy supply and manage peak demand more effectively.
Another positive development is the central government’s shift toward promoting distributed renewable energy projects through initiatives like the PM Surya Ghar: Muft Bijli Yojana and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. These programmes are designed to ease grid capacity constraints that have historically slowed down large utility-scale projects. Additionally, supportive policies for domestic solar manufacturing have spurred rapid growth in the production of solar modules and, more recently, solar cells and upstream components, strengthening India’s position in the global solar value chain.
Despite these achievements, the sector still struggles with delays in connecting new projects to the grid, particularly when it comes to securing PPAs with discoms. These bottlenecks remain a hurdle to scaling up renewable energy deployment at the pace required to meet India’s ambitious targets.
What have been the key achievements for the company over the past year?
This past year has been transformative for First Solar. In the US, we successfully commissioned a new CdTe thin-film manufacturing plant in Louisiana, significantly expanding our capacity to meet domestic market demand. Meanwhile, our 3.3 GW facility in India has focused on increasing local value by strengthening our supplier base within the country.
On the demand side, we are sharpening our focus on the Indian market, where policies such as the domestic content requirement and the Approved List of Models and Manufacturers (ALMM) II have driven a growing preference for solar modules with higher local content. This trend plays directly to our strengths – not only because of our high local content but also due to our proven, bankable performance in India’s unique conditions. While many domestic manufacturers are still ramping up operations, our established track record positions us as a trusted partner in this evolving landscape.
What is your view on the recent ALMM notifications, especially considering the country’s current manufacturing capabilities?
The latest ALMM II notifications represent a pivotal moment for India’s solar industry. By accelerating the localisation of solar cell manufacturing, these measures address a critical gap in the solar value chain. Solar cells are the backbone of the industry, and technological innovation in this area will shape its future. Since the ALMM II notification in December 2024, Indian companies have responded with significant investments in cell manufacturing.
Domestic cell capacity has already surged to over 25 GW, up from less than 8 GW at the start of 2024, and another 35 GW in new projects could come online by the end of 2026. This rapid expansion demonstrates the sector’s readiness to scale and meet India’s ambitious renewable energy goals, while also laying the foundation for deeper innovation and upstream component development.
What has been the impact of geopolitics and evolving trade policies on solar supply chains?
Geopolitical dynamics have profoundly reshaped global solar supply chains. China’s dominance in polysilicon production has created two major trends: a flood of low-cost PV modules in global markets, which has driven prices down sharply, and export restrictions on critical machinery and components, which have slowed efforts by other countries to build their own manufacturing ecosystems. These developments have prompted policymakers in India, the US, and increasingly the European Union to prioritise supply chain security and resilience. Their response has included tariffs and non-tariff barriers, fuelling a wave of localisation and disrupting established global networks.
At the same time, investment in research and development is accelerating, particularly in alternative PV technologies such as perovskite solar cells. These efforts reflect a broader push to reduce dependence on concentrated supply chains and build a more self-reliant solar industry.
What are the key bottlenecks from a manufacturer’s point of view?
As the solar market moves upstream, from module assembly to cell production and beyond, the capital requirements for these investments rise sharply. Unlike simpler module assembly, building capacity for upstream components demands long-term support and stable, forward-thinking policies that span the entire investment cycle, often two to three years from planning to execution.
While recent government initiatives have signalled a strong commitment to localising the full solar PV value chain, challenges remain. Uncertainty around long-term demand persists, driven by delays in project tenders, PPA finalisation, and the availability of grid connections and land. Manufacturers must weigh these risks carefully when determining the scale of their investments.
Another major hurdle for crystalline silicon manufacturers is access to advanced capital goods and technical expertise, areas where China currently dominates. Overcoming this will require substantial investment in workforce training, particularly in process integration and automation – areas that India must continue to prioritise to develop long-term capabilities.
According to you, what measures are required to boost domestic manufacturing?
The government has made commendable progress in signalling its intent and backing it with supportive policies to localise the solar manufacturing value chain. Going forward, consistency will be key. Avoiding retrospective policy changes and maintaining a stable regulatory environment will ensure that investor confidence remains strong. Staying the course is essential to building a robust, self-reliant solar industry in India.
What are the required technology focus areas in the Indian PV manufacturing space?
Thin-film perovskites represent one of the most promising areas for future investment and localisation. Encouragingly, there is already work ongoing on developing perovskite and perovskite tandem cells, and First Solar commissioned a perovskite test line at our Ohio campus earlier this year.
The challenge now lies in bridging the gap between research and commercialisation. Stronger collaboration between academia and industry will be critical to scaling these technologies from the lab to mass production.
