Report shows bright future for India's solar PV manufacturing market

In 2023, India added 20.8GW of solar modules and 3.2GW of solar cell capacity, according to the recently released Mercom India research report, State of Solar PV Manufacturing in India 2024.

Manufacturing capacity additions in 2023 were primarily driven by the anticipated reimposition of the Approved List of Models and Manufacturers (ALMM) order starting in April 2024, as well as potential export opportunities.

The country's cumulative solar module manufacturing capacity reached 64.5GW, and solar cell manufacturing capacity totaled 5.8GW as of December 2023.

The top 10 manufacturers accounted for 62% of the module and 100% of cell production capacity as of December 2023.

About 60% of the installed module manufacturing capacity was equipped to manufacture solar modules in M10 and G12 wafer sizes. Only 22.2GW of the total module production capacity was enlisted under the ALMM order per the updated List–I issued by MNRE as of January 2024.

Have you read?
India added 1.7GW of rooftop solar in 2023 shows report
Tata Power gains $425m in US funding for solar manufacturing plant in India

Monocrystalline modules accounted for 67.5% of the country's module production capacity, followed by polycrystalline, Tunnel Oxide Passivated Contact (TOPCon) and thin film modules.

Module manufacturing capacity is projected to surpass 150GW and cell capacity is expected to reach over 75GW by 2026.

Based on the current pipeline, monocrystalline modules are anticipated to represent 59.7% of the annual module production capacity and 50.5% of the cell production capacity by 2026, followed by TOPCon, Heterojunction (HJT), and other technologies.

Raj Prabhu, CEO of Mercom Capital Group commented in a statement: "As Indian manufacturers continue to invest in expanding their solar panel production capacities, they need to carefully navigate through the complexities of geopolitical tensions and trade disputes. Cheaper Chinese products will continue to challenge the competitiveness of locally-produced modules.

"A policy change in the US, post-elections, could potentially shrink export opportunities, and demand for solar energy in India needs to ramp up significantly to consume the projected increase in module production in the coming three years," concluded Prabhu.

Gujarat led the country's PV manufacturing capacity, accounting for 46.1% of solar modules. Telangana accounted for 39% of annual solar cell production capacity, the highest in the country as of December 2023.

Rajasthan and Tamil Nadu ranked second and third for solar module production capacities, accounting for 9.3% and 7.6%. Gujarat and Himachal Pradesh were second and third, with solar cell production contributing 34.7% and 13.9% of total capacities in the country.

Various public sector and government entities issued tenders totaling 9.7GW to procure solar modules in 2023, up 275.6% YoY.

According to the report, India imported 16.2GW of modules, the highest in a year, up 158% YoY from 10.3GW in 2022. Domestic manufacturers exported 4.8GW of solar modules in 2023, up 204% compared to 1.6GW in 2022.

India imported 15.6GW of solar cells in CY 2023, up 169% YoY from 5.8GW. India's solar cell exports reached 286.3MW in 2023, up 2,765% from 10MW in 2022.