India to Emerge as the Second-Largest Solar Module Producer by 2025
According to a latest report by Wood Mackenzie, India is forecasted to overtake Southeast Asia as the second-largest module production region by 2025, which will be driven by India’s strong PLI incentives.
November 20, 2023. By Anurima Mondal
The solar sector in India is gradually achieving the much-needed recognition with the government implementing various policies and incentives to promote local manufacturing of solar panels.
With an aim to increase the share of domestic manufacturing in India’s GDP, the ‘Make in India’ scheme has helped the sector by providing incentives for domestic manufacturing and reducing regulatory barriers.
The Production Linked Incentive (PLI) scheme provides financial incentives to manufacturers for producing high-performance solar panels. Apart from this, Under the ‘National Solar Mission’, the government has set the aim of 300 GW of solar capacity by 2030. This has not only created a huge demand for solar energy but also encouraged local manufacturers to ramp up production to meet this demand.
The report titled “How will China’s expansion affect global solar module supply chains?” further states that China will hold more than 80 percent of the world’s polysilicon, wafer, cell, and module manufacturing capacity from 2023 to 2026 after investing over USD 130 billion into the solar industry in 2023.
Huaiyan Sun, senior consultant at Wood Mackenzie, and author of the report said, “China’s solar manufacturing expansion has been driven by high margins for polysilicon, technology upgrades and for developing local manufacturing in overseas markets, China will still dominate the global solar supply chain and continue to widen the technology and cost gap with competitors.”
China’s capacity expansion will perpetuate its dominance in the global solar industry with its advanced technology, low costs and complete supply chain, the report adds.
While it is not easy for India to surpass China in the solar manufacturing race, but the country has definitely emerged as a strong contender to replace China as the world’s hub for solar manufacturing due to concerns about it abusing its powers.
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Dr. Mridula D Bharadwaj
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