India’s renewable energy ambitions have gained significant momentum, with total installed capacity surpassing 200 GW. The nation is targeting 500 GW from non-fossil sources by 2030, with solar power expected to play a noteworthy role in this transition. As part of its commitment to global climate goals, India has pledged to reduce emissions intensity by 45% by 2030 under the Paris Agreement, reinforcing the need for a robust domestic manufacturing ecosystem in the renewable sector. Bolstering domestic solar manufacturing is crucial for reducing import dependency, securing supply chains, and positioning the country as a global leader in solar technology.
The solar sector is the backbone of India’s renewable energy expansion, contributing approximately 86% of new capacity additions between April 2024 and January 2025, according to data from the Ministry of New and Renewable Energy (MNRE). While large-scale solar parks and rooftop installations are undergoing accelerated deployment, manufacturing remains a critical gap in the country’s self-sufficiency efforts.
The Approved List of Models and Manufacturers (ALMM) is a key policy intervention designed to boost local manufacturing by ensuring government-backed projects procure only domestically produced solar modules, now with domestically produced solar cells.
Solar module manufacturing has seen quite a growth in the last couple of years. The next step in self-reliance is the indigenisation of solar cells, a far more technical challenge than module assembly. Currently, a substantial portion of solar cells and wafers are imported, particularly from China. Scaling domestic production for these requires not just capital investments but also a highly skilled workforce and access to critical raw materials.
Enhancing manufacturing, raw material sourcing, and market strategies
India’s solar manufacturing relies heavily on imported raw materials such as polysilicon, wafers, glass and encapsulants. Despite efforts to reduce dependency through production-linked incentives, supply chain vulnerabilities remain a major concern. While some of the other raw materials have seen a greater indigenization like frames and encapsulants, major value of a typical BOM is still imported. Establishing domestic polysilicon, wafer and cell production facilities is important to achieving long-term sustainability in solar manufacturing.
Additionally, the industry faces challenges in securing cost-effective and quality-competitive alternative suppliers for solar glass and junction boxes, which are still largely sourced from global suppliers. Encouraging research and development in alternative materials and localising supply chains through policy incentives can bridge this gap.
While module manufacturing has seen considerable investments, solar cell production remains a bottleneck. Advanced cell technologies require specialised expertise and machinery, areas where India still lags behind. Cell production demands precision and involves complex processes like doping, etching, and anti-reflective coating, which are currently dominated by a few global players.
To scale domestic cell manufacturing, India must invest in high-efficiency cell technology such as TOPCon, Backcontact and Perovskite; develop indigenous machinery and production lines; and fortify raw material procurement through bilateral agreements and domestic mining policies.
Beyond manufacturing, sales and market expansion are crucial for sustaining the solar sector’s growth. India’s solar industry is rising across captive industrial installations, utility-scale solar projects, and export opportunities. Many industries are setting up in-house solar plants to reduce energy costs. Competitive auctions continue to drive large-scale installations, though the financial health of distribution companies remains a concern.
Indian manufacturers also have an opportunity to tap into growing global demand, provided they meet international quality standards and trade requirements. By focusing on high-quality production and efficient logistics, India can emerge as a strong player in the global solar market.
Addressing skill gaps and building a future-ready workforce
Despite strong growth, the solar industry faces a shortage of skilled manpower, especially in high-precision manufacturing. Many Indian companies still send engineers to China for training in solar cell and wafer production. While the government’s Skill India Mission and vocational programmes have made progress, dedicated training centres for advanced solar manufacturing are essential.
The sector must prioritise industry-specific training initiatives, foster collaboration between private players and technical institutes, and establish R&D centres that focus on innovation and process improvement. A well-trained workforce is key to safeguarding the long-term sustainability and competitiveness of India’s solar manufacturing ecosystem.
Recognising the urgency of skill development, the government has drastically increased funding in this area. The FY 2026 budget allocated INR 3,000 crore for the new ITI upgradation programme, a steep rise from INR 294 crore in the revised estimates of FY25. Also, the centrally sponsored schemes of the skill development ministry saw their revenue expenditure allocation grow to INR 3,050 crore in FY26 from INR 669 crore in the previous year’s revised estimates. The overall budget of the skill ministry has more than doubled, reaching INR 6,017 crore in FY26 compared to INR 3,241 crore in the previous fiscal year’s estimates. These measures underline the government’s commitment to enriching skill education, ensuring that India’s workforce is well-equipped to support the rapidly expanding solar industry.
As India advances toward its Vision 2047 goals, solar module and cell manufacturing must be at the heart of the renewable energy strategy. While policy interventions like ALMM and production-linked incentives have laid a strong foundation, the next phase requires intensifying domestic raw material manufacturing & supply chains, scaling solar cell production with novel technologies, developing a skilled workforce to support advanced manufacturing, and elevating export competitiveness through quality certifications and trade agreements.
The journey to a self-sufficient solar manufacturing sector is complex but inevitable, and with the right investments and strategies, India can secure its energy future, strengthen its solar manufacturing sector, and emerge as a dominant force in the global clean energy shift.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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