India’s clean energy ambitions are entering a critical new phase. While the solar manufacturing ecosystem has made significant strides, particularly in module production, there is now a growing urgency to diversify and deepen domestic manufacturing across the entire value chain. Components such as storage systems, inverters, and other balance of System (BoS) equipment still depend on imports. This introduces vulnerabilities in cost, timelines, and supply chain resilience that could impact the success of large-scale renewable energy deployment.

These pressing issues were discussed at the  Mercom India Renewables Summit 2025 during a panel titled “Strengthening India’s Renewable Ecosystem: Manufacturing Key Components Locally.” The session featured Amod Anand, CEO at Loom Solar; Bhupendra Singh Rawat, CEO at Dhash PV Technologies; Rahil Mehrotra, General Manager at JSW Steel; and Ajay Shah, Director at Vishakha Group.

Priya Sanjay, Managing Director at Mercom Communications India, moderated the session. She opened the discussion by highlighting the imbalance in the domestic manufacturing ecosystem. While solar module production capacity has seen rapid growth, upstream and ancillary components have not kept pace. According to current estimates, India has approximately 30 GW of module capacity; however, the supply of essential materials, such as solar glass, backsheets, encapsulants, and junction boxes, remains limited. This mismatch poses a significant challenge as India aims to achieve 500 GW of non-fossil capacity by 2030.

Anand shared the unique journey of Loom Solar, which has adopted an online-first, direct-to-consumer model focused on underserved and rural markets. Rather than start with capital-intensive manufacturing, the company began by addressing local needs through digital content and education. Loom Solar built its customer base among mobile users such as truck drivers and roadside shop owners, many of whom use compact systems starting from just 40 watts. The company focused on building trust and usability by developing detailed content on installation and product use.

Unlike traditional manufacturers who begin by setting up factories and seeking large institutional orders, Loom Solar created demand first and scaled production based on specific, real-world requirements. Anand noted that the company is now transitioning from low-margin markets to higher-income segments, while continuing to focus on states and regions where major solar players have limited reach.

Anand emphasized that over 90% of Loom Solar’s revenues currently come from non-DCR modules, allowing them to remain insulated from short-term policy fluctuations. However, the company is preparing to expand into the DCR space.

Rawat described the significant pricing and competitive pressures faced by Indian component manufacturers. As CEO of Dhash PV Technologies, a manufacturer of junction boxes, Rawat noted that Chinese firms continue to dominate due to their full value chain integration, access to low-cost finance, and policy support in their home country. He cited industry estimates that place the inherent Chinese cost advantage at around 30%.

To compete, Dhash PV focused on innovation, quality, and backward integration. The company ramped up capacity from 3 GW to 40 GW within a few years and is now expanding to 63 GW. In-house design, development, and manufacturing of high-temperature polymer enclosures have enabled the company to control over 65% of its supply chain. The firm has also entered the DC cable production market and is exploring new product lines, such as interconnects and high-current-rated junction boxes, for future-ready modules.

Rawat also highlighted supply chain challenges specific to his segment. Diodes used in junction boxes are semiconductor components with long lead times and specific current ratings based on module wattage. Fluctuations in module ratings make forecasting diode demand difficult. He urged developers and EPC contractors to engage in longer-term procurement planning and treat component manufacturers as partners rather than transactional vendors.

Vishakha Group’s Shah spoke about the persistent gap in domestic solar glass supply. While India produces about 12 GW of solar glass annually, demand already exceeds 25 GW, and is growing. This supply-demand mismatch has caused recurring price volatility and disrupted project timelines.

However, he noted that policy changes such as basic customs duty and ALMM regulations have begun to incentivize domestic investment. Vishakha itself plans to triple its glass manufacturing capacity within the next year, he said.

Beyond glass, Vishakha also manufactures encapsulant films, aluminium frames, and backsheets, making it one of the few vertically integrated component players in India. Shah argued that this model has helped them ensure consistency in quality and manage risk during global supply disruptions such as port delays and geopolitical instability.

He called for policy mechanisms similar to the Production Linked Incentive (PLI) program to be extended to components other than modules, particularly for capital-intensive areas such as glass and encapsulant production.

Rahil Mehrotra of JSW Steel shared how JSW responded to field-level challenges by developing a specialized steel called JSW Magsure. This product uses a coating of zinc, aluminium, and magnesium to enhance corrosion resistance, particularly in coastal and high-humidity regions. The product was developed in collaboration with developers and EPC firms that had raised concerns about delays in imported steel and structural corrosion in high-salinity zones.

Mehrotra noted that, before JSW’s innovation, coated steel for such applications had to be imported, with lead times exceeding three months. The company not only helped reduce dependency on imports but also worked with partners to redesign mounting structures. By improving design and engineering, JSW helped reduce steel usage from 60–80 tons per MW to just 20 tons per MW, a significant gain in cost and material efficiency.

He also advocated for standardizing coating requirements based on location-specific corrosion categories (C1 to C5) to ensure durability and long-term project stability.

All panelists agreed that while module manufacturing has benefited from supportive policies, component manufacturers require equal attention. Shah emphasized the importance of extending PLI-like benefits to critical components, while Rawat and Anand stressed the need for improved financing and long-term offtake visibility. Anand also argued that flexibility must be built into the DCR framework to accommodate innovative business models and smaller market players.

In their call to action, the panelists called for scaling its renewable energy infrastructure on a strong, local, and future-ready foundation. They were unanimous that expanding module capacity alone will not be sufficient. India needs to build a resilient domestic supply chain that includes high-quality, competitively priced components from junction boxes and solar glass to mounting structures and cables.