Indian Solar Module Manufacturing Capacity to Reach 95 GW by 2025

Significant capacities of polysilicon, ingots, and wafers are likely to be added by the end of 2024

thumbnail

India’s solar photovoltaic (PV) module manufacturing capacity exceeded 39 GW at the end of September 2022 and is expected to reach ~95 GW by the end of the calendar year (CY) 2025.

The findings are a part of Mercom India Research’s newly released report, ‘State of Solar PV Manufacturing in India.’

The report provides a detailed account of the Indian solar PV module manufacturing landscape and identifies the challenges and opportunities for manufacturers and their evolving role in the global solar industry with capacity and technology development during the coming years.

“With an estimated 220 GW of solar capacity required by the end of the decade, India needs significant manufacturing capacity ramp up,” commented Priyadarshini Sanjay, Managing Director of Mercom India.

India had a solar cell manufacturing capacity of approximately 4.7 GW as of September 2022. This is expected to increase seven-fold by the end of CY 2024.

States have been promoting the development of domestic solar manufacturing by offering various fiscal and non-fiscal incentives under industrial, electronics, and solar policies. The government’s Production Linked Incentives (PLI) program further encourages the vertical integration of new capacity.

By the end of 2024, large amounts of polysilicon, ingots, and wafers will be added to the market by the companies awarded incentives under the first round of the government’s PLI program.

Additionally, the pending allocations under the second round of the PLI program would significantly enhance the domestic value chain for PV manufacturing.

Gujarat housed the majority of solar module and cell manufacturers. It is expected that the state will remain the major producer of PV products for the next 2-3 years.

Solar Module Manufacturing Forecast (MW)

“The government of India is determined to develop India as a manufacturing hub for solar modules, establishing the complete value chain to address supply chain issues. Manufacturers planning expansion are considering the lucrative export market along with the domestic demand. However, developers and installers need short-term and long-term visibility to develop a viable sourcing strategy,” said Sanjay.

Since 2018, Indian manufacturers have consistently met the demand for solar modules in the United States, South Africa, and the United Arab Emirates.

India Installed Module Manufacturing Capacity

India had a total installed solar power capacity of around 60 GW as of September 2022. China, the U.S., the EU, and India are poised to add significant solar power generation capacities over the next decade.

The leading global markets are beginning to shift away from mono PERC technologies as newer technologies like TOPCon and HJT are entering mass production and becoming more widely available.

Indian module manufacturers are starting to build large-scale facilities for producing TOPCon, thin film, and HJT modules, which are expected to be widely available in the market by 2025.

Solar cells and modules using M10 and M12/G12-sized wafers are expected to gain a significant market share over the next 2-3 years.

A comparative analysis of global and Indian PV technology evolution in the report will help companies chart their business growth in line with the global solar industry trends.

The report analyzes the price competitiveness of Indian solar module manufacturers compared to the imports, along with detailed coverage of policies impacting the domestic PV manufacturing industry.

The report provides a complete understanding of the manufacturing expansion, vertical integration, and export scenario to plan their investments and procurement.

Mercom’s State of Solar Manufacturing in India report is 58 pages and covers all facets of India’s solar manufacturing. For the complete report, visit:  https://mercomindia.com/product/state-solar-manufacturing-india

thumbnail

Arjun Joshi

RELATED POSTS

Mercom Research Focus
thumbnail
India Installs a Record 2.5 GW of Solar Open Access in 2022, Up 92% YoY

India added 2.5 GW of solar open access in the calendar year (CY) 2022, a year-over-year (YoY) increase of 92% from the 1.3 GW installed in CY 2021, according to the newly released 2022 Q4 & Annual Mercom India Solar Open Acce...

March 15, 2023

Solar

Kerala Issues Empanelment Tender for 100 MW of Solar Projects

The Kerala State Electricity Board (KSEB) has invited bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects. Empanelled vendors also must furnish operation and maintenance (O&M...

March 20, 2023

Tenders and Auctions

Gujarat Invites Bids to Procure 500 MW of Wind Power with Greenshoe Option

Gujarat Urja Vikas Nigam (GUVNL) has invited bids to procure power from 500 MW of grid-connected wind projects (Phase V) with a greenshoe option of an additional capacity of up to 500 MW. The last day to submit the bids online is ...

March 17, 2023

Rooftop

MSMEs Adopt Solar Readily If Savings on Power Bills Cover EMI Cost: Interview

Small businesses are open to adopting rooftop solar if loan repayment is not an additional burden and is equal to their savings on electricity bills. Entities in the commercial and industrial (C&I) segment are increasingly mov...

March 17, 2023

Magazine

DON'T MISS AN ISSUE!

Mercom Cleantech Magazine

Get Your Copy Today!

magazines

Latest News

thumbnail
Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program

The Maharashtra Electricity Regulatory Commission (MERC) has adopted tariffs of ₹3.28 (~$0.039)/kWh, ₹3.29 (~$0.039)/kWh, and ₹3.30 (~$0.040)/kWh for the procurement of 8.7 MW of solar power on a long-term basis. The Commission...

March 21, 2023

thumbnail
Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio

Global investment firm Kohlberg Kravis Roberts (KKR) has agreed to sell 50% of its stake in renewable developer X-ELIO to its joint venture partner Brookfield Renewable. Financial details were not disclosed. Since KKR’s...

March 21, 2023

thumbnail
NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries

NTPC Limited’s wholly owned subsidiary, NGEL, has entered into a joint venture agreement with Indian Oil Corporation (IOCL) to develop renewable energy projects that can meet round-the-clock power requirements to meet the...

March 21, 2023

thumbnail
Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C 

Financial support from developed economies to developing nations which is a critical enabler of climate action has been inadequate, said scientists in the latest Intergovernmental Panel on Climate Change (IPCC) report...

March 21, 2023

thumbnail
India Voices Concern over Europe’s Carbon Tariff Measure at WTO

India has expressed concern about the carbon border measures proposed by the European Union (EU) at a recent meeting of the World Trade Organization’s (WTO) Committee on Trade and Environment. Presenting a paper on the increasing...

March 21, 2023

thumbnail
JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects

JSW Neo Energy (JSW Energy) and Greenko KA 01 IREP (Greenko) have won the Power Company of Karnataka’s (PCKL) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour...

March 21, 2023

thumbnail
Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects

Sterling and Wilson Renewable Energy, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won NTPC’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar...

March 21, 2023

thumbnail
Indian Oil Floats O&M Tender for 8 MW Solar Project in Ahmedabad

Indian Oil Corporation (IOCL) has invited bids for the operation and maintenance (O&M) of an existing 8 MW solar power project at the LPG bottling plant at Sanand in Ahmedabad for five years. The last date to submit the bids...

March 21, 2023

thumbnail
IIT Mandi Creates Low-Cost Method for Solar Cell Metal Oxide Layers

Researchers at the Indian Institute of Technology Mandi (IIT Mandi) have claimed a breakthrough in producing metal oxide layers for use in advanced architecture silicon solar cells using a cost-effective method. This innovative...

March 21, 2023

thumbnail
Government Allows NTPC to Invest Over 30% of Net Worth in its Green Arm

The government has allowed NTPC to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE). The extant guidelines prescribe a ceiling of 30% of a...

March 21, 2023

MORE NEWS