India must add 200-250 GW of solar module manufacturing capacity every year to reach its 2047 clean energy target and its net-zero goals by 2070. To reach these targets and reduce the reliance on Chinese imports, the government must support solar component manufacturing.

This was one of the calls to action by the speakers at a panel discussion titled “Domestic Cell and Module Production: Meeting Demand, Competing on Quality and Price” at the Mercom India Renewables Summit 2025, held on July 24.

The panelists were Prashant Mathur, CEO at Saatvik Solar, Suhas Donthi, President and CEO at Emmvee Group, and Avinash Hiranandani, Vice Chairman and Managing Director at RenewSys India.

The session was moderated by Priya Sanjay, Managing Director at Mercom India.

The speakers agreed that the shift to Tunnel Oxide Passivated Contact (TOPCon) from Monocrystalline Passivated Emitter and Rear Cell (Mono PERC) was now permanent, owing to dwindling demand for Mono PERC in the market.

Suhas Donthi said the market was not seeing much demand for Mono PERC. “We were early movers of TOPCon technology. Last year, the majority of the supply was for TOPCon. Currently, we don’t have any order book for Mono PERC.”.

He said Emmvee has a TOPCon module manufacturing capacity of 7.8 GW and 2.9 GW of TOPCon cell manufacturing capacity. The company’s solar cell line was commissioned last year. It is also in the process of adding 2.5 GW module manufacturing capacity this year and has plans for another 6 GW of cell and module manufacturing capacity each.

Saatvik Solar’s Mathur said that the company had 3.8 GW of module manufacturing capacity, with plans to reach 4.8 GW of module manufacturing capacity by the end of July.

He said Saatvik was also foraying into the manufacturing of encapsulants and ethylene vinyl acetate sheets. An integrated cell and module facility in Odisha comprising 4.8 GW of cells and 4 GW of modules are also in the pipeline.

Cumulatively, Mathur said Saatvik will have a module manufacturing capacity of 8.8 GW at the end of expansion. Out of the 8.8 GW module manufacturing capacity, 8.2 GW is of TOPCon module technology.

Out of the 4.8 GW module manufacturing capacity, only 600 MW is Mono PERC, and the rest is TOPCon.

“Currently, the industry is transitioning from Mono PERC to TOPCon. The cost of Mono PERC modules is also higher than TOPCon. The demand for Mono PERC is tapering down, and it will reach a dead end soon.” Mathur added that the demand for MonoPERC comes from projects that meet domestic content requirements, as most cell manufacturers in India are using Mono PERC. The technology is primarily used for old projects.

ALMM for Solar Cells

Hiranandani of RenewSys said that if India has to reach the Viksit Bharat target of 2047 and net zero by 2070 faster, it must add 200-250 GW of solar module manufacturing capacity every year.

RenewSys has been making polycrystalline cells and has forayed into TOPCon cells. The company has set a target of 4.5 GW of cell manufacturing capacity currently, with 2.5 GW of cell manufacturing capacity in the pipeline. It plans to commission 500 MW of cell manufacturing capacity by October this year

“With ALMM-List II (for solar cells) coming in by June 2026, we need to assess if India has enough cell capacity to match its module capacity,” he added.

He suggested that the government should consider the postponement of the ALMM List-II based on the preparedness of the market.

Mathur said Saatvik’s module manufacturing capacity is primarily driven by domestic demand, but there is considerable focus on exports. “Due to the market uncertainty  in the U.S., exports have dipped for a short period, but the U.S. continues to remain the primary export market for India.”

Growth of Solar Components Sector

Hiranandani said that entering into component manufacturing market is very easy as it requires less capital expenditure. “But it’s also an extremely technical space. The encapsulants must last for 25 years as mentioned in the warranty”

Hiranandani said that a rush to get into component manufacturing in India has slowed down as the encapsulant industry recently announced a 30 GW expansion into encapsulant lines.

He pointed out that there were still numerous components coming from China, such as aluminum frames, junction boxes, and solar glass.

“The government has supported glass manufacturers by providing a minimum import price, and it will ensure a smooth supply chain of solar glass,” he said.

Hiranandani and other speakers noted that while ALMM List-I supports module manufacturers, there should be some government backing for component manufacturing.

Mathur spoke about how solar manufacturing was moving towards the integrated model. “We are seeing a shift to an integrated module-cell model, manufacturers getting into ancillaries, engineering, procurement, and construction, and the independent power producer (IPP) business. We have developers getting into the manufacturing business. Four-five years down the line, we will have a model that will span from ingot to IPP business.”

Rising Module Prices

Breaking the myth of overcrowding in the module manufacturing sector, Hiranandani said that existing module capacities are already booked and that demand is surpassing supply.

He was skeptical about module prices coming down since their prices are the sum of the prices of components.

“Recently, cell prices went up, and they are still going up. Module prices will only come down when all the other component prices drop.”.

About module prices, Donthi said comparing prices with China is not logical because of the subsidies Chinese companies receive.

Mathur highlighted that there is not enough competition for module supply for large projects. “Large projects need funding. They require field reports, audits, and third-party insurance, and you need to match those requirements. There are a few module manufacturers who meet these criteria.”

Manufacturing Challenges

The panelists felt that 10% duties on solar components are not sustainable.

Hiranandani said that there are free trade agreements with many countries, and many goods come from those countries.

He called for a policy environment similar to that for modules and cells for solar component manufacturing. This will allow for the development of a complete ecosystem for components in India.

About the recent announcement of an investigation by the U.S. into the alleged dumping of solar modules by Indian companies, Donthi said the U.S. doesn’t have a case.

“None of us are supplying modules because we have excess capacity. Neither are we circumventing products from different countries. India also has a strong domestic demand, and our manufacturing sector is not being set up to export.”

Concurring with Donthi, Mathur said India was not subsidizing module manufacturing to sell below cost.