Solar module manufacturing and engineering, procurement, and construction company Pahal Solar will set up a 2 GW solar cell and a 2 GW aluminum frame manufacturing facility in Surat, Gujarat.

The company stated that the facilities’ AI-based precision and analytics systems will enhance manufacturing efficiency, consistency, and product quality.

Both facilities are expected to be commissioned by late 2026.

Pahal Solar has a solar module manufacturing capacity of 2.4 GW and a ribbon and busbar production capacity of 2 GW. The company added that it is undertaking strategic infrastructure upgrades to enhance its total installed capacity to 4.4 GW within the financial year 2026.

The company’s offerings include N-Type TOPCon Bifacial and Mono Crystalline solar modules, with capacities ranging from 3 W to 740 W. India added 44.2 GW of solar module capacity and 7.5 GW of solar cell capacity in the first half (1H) of 2025, according to the recently released Mercom India research report, “State of Solar PV Manufacturing in India 1H 2025.”

The manufacturing capacity additions in 1H 2025 were primarily driven by strong demand from the large-scale solar project pipeline of 186 GW between 2025 and 2027.

Module manufacturing capacity also increased due to the 2030 solar installation targets and policy-driven domestic demand for solar modules compliant with the ALMM. As of September 2025, the cumulative capacity of modules under the ALMM List-I stood at 109.5 GW, and the cumulative cell capacity of ALMM List-II stood at nearly 17.9 GW.

Indian manufacturers currently have 182 GW of solar module capacity and 86 GW of cell capacity under construction, expected to be commissioned by 2027.

Gujarat was the most favored location for solar module manufacturing, accounting for 41.6% of the solar module production capacity as of June 2025. Rajasthan and Uttar Pradesh followed with production capacities of 12.8 GW and 11.5 GW.