Home › Solar manufacturing ›India’s Solar Manufacturing Boom: Growth Story or Bubble in the Making?
India’s Solar Manufacturing Boom: Growth Story or Bubble in the Making?
With module capacity far outpacing domestic demand, India must now confront overcapacity head-on while strengthening upstream integration to secure long-term self-reliance and global competitiveness.
February 26, 2026. By Mrinmoy Dey
India’s solar PV manufacturing is at an inflexion point. At the top end, India’s module manufacturing capacity has surpassed current domestic requirements by about three times. India’s solar module capacity under the Approved List of Models and Manufacturers (ALMM) has reached about 162 GW, as against a domestic requirement of about 50-55 GW.
At the solar cell level, India is fast ramping up capacity, with the target of achieving indigenous solar cell manufacturing by 2028. ALMM-II enlisted capacity for solar cells has reached 26.79 GW, slightly below present demand – but this too is projected to exceed 100 GW by FY28, surpassing domestic needs as new projects come online, as per projections by CareEdge Ratings.
In sharp contrast, upstream segments such as polysilicon, ingots and wafers remain severely underdeveloped, with only about 2 GW of ingot and wafer capacity and no commercial polysilicon production in the country.
This represents a significant demand-supply gap within the solar PV supply chain, highlighting a structural imbalance. At the same time, mandatory DCR usage from June 2026 for government and subsidy-linked projects will exclude a large share of non-DCR modules from key demand segments, putting further strain on modules.
However, for a resilient solar PV supply chain, demand side push is required on the upstream components – creating a ‘Catch-22’ situation. For the overall health of the industry, the issue must be addressed right now to stop a bubble from forming.
Module Enters Overcapacity Territory
India's solar module manufacturing capacity has grown from 2.3 GW in 2014 to about 162 GW in February 2026. According to a projection by credit rating agency CareEdge Ratings, India’s solar module manufacturing capacity is expected to reach about 215-220 GWp by FY28, reflecting strong policy support and rising demand.
The All India Solar Industries Association (AISIA), in a letter to the MNRE in August 2025, warned that module manufacturing capacity has grown to nearly four times annual demand, and that unchecked lending could create unsustainable debt burdens and potential non-performing assets (NPAs) in the banking system. The association urged that banks increase due diligence before funding additional module or cell projects.
Consolidation on the Cards?
Experts within the industry aver that cell-module supply mismatch, combined with high leverage and thin margins among many OEMs, could trigger price crashes, cash-flow stress, and rising NPAs, turning an industrial expansion story into a financial risk.
Jatin Arya, Director at CareEdge Ratings, remarked, “The projected domestic demand for solar modules is expected to remain in the range of 50–55 GW (DC), indicating a significant demand–supply mismatch and structural oversupply, purely from a domestic perspective. In the near to medium term, the industry is likely to witness intensifying competition, margin compression, and consolidation, particularly impacting non-integrated and smaller module manufacturers, while integrated and scale players are expected to be relatively better positioned to withstand the pricing pressures.”
However, industry leaders look at it as a positive rather than a worrying sign. Vinay Thadani, Executive Director and CEO, GREW Solar, said, “The current phase reflects the speed at which India’s solar ecosystem is scaling. Strong policy direction, ambitious capacity targets, and growing domestic demand are creating long-term confidence across the value chain. In such phases, competition tends to push the industry towards better efficiency, higher quality, and stronger technological capabilities. Over time, this naturally leads to a more balanced and resilient market. We believe this momentum will ultimately strengthen India’s manufacturing base, improve global competitiveness, and support sustainable growth rather than restrict it.”
Gagan Chanana, Jt. MD and CEO of Jakson Solar, remarked, “We see the current situation less as a slowdown and more as a natural phase of industry maturation. India’s solar manufacturing ecosystem is transitioning from a supply-constrained market to a more competitive and diversified one. This is a healthy sign of sectoral depth rather than distress.”
However, to complicate the scenario further, with low entry barriers, standalone module manufacturing unit keeps coming in as new players enter the segment. “While entry into basic module assembly remains relatively accessible, scaling high-efficiency, end-to-end manufacturing with strong quality controls and R&D capabilities requires significant capital and expertise,” opined Chanana.
Chanana believes that over time, the market is likely to rationalise capacity, with well-integrated and quality-focused manufacturers gaining strength, while less differentiated players may recalibrate their strategies. “As projects become larger and more sophisticated, bankability, performance guarantees, and long-term reliability will increasingly outweigh short-term price considerations, helping stabilise the ecosystem,” he said.
Strategies to Overcome the Glut
In the meantime, manufacturers must calibrate their strategies with the realities of domestic overcapacity. To adapt to this, they are looking at two major directions: Captive consumption through EPC and Exports.
“Our approach is built around diversification, integration, and global alignment. Our presence across manufacturing, EPC, project development, and O&M allows us to absorb capacity through our internal project pipeline, providing stability even during periods of market imbalance,” emphasised Chanana.
“Our focus is on delivering high-quality solar modules to meet the growing demand in India and abroad. While the market is expanding rapidly, we continue to optimise our production and cater to reliable domestic project partners. At the same time, we are actively exploring export opportunities, ensuring our products meet international standards and certifications. This balanced approach helps us stay resilient, maintain strong partnerships, and continue driving sustainable growth in a competitive environment,” remarked Thadani.
Gautam Mohanka, Managing Director, Gautam Solar, asserted that Non-ALMM listed modules will not be viable to be traded in the Indian markets. “Regardless of the cell capacity and ingot-wafer capacity, we are hoping to expand our reach in the international market, which is highly profitable for solar energy solutions. At the end, we want to ensure our solutions can reach a global stage and be trusted for their performance and reliability across borders,” he said.
Arya is optimistic about the export-led growth. “The recent reduction in tariffs by the US, along with improving trade access to markets such as the Middle East, Europe and Africa, could provide export-led demand support over the medium to long term, partially mitigating domestic oversupply pressures,” he said.
Chanana informed that Jakson Solar is also steadily expanding its export footprint. “Our upcoming 6 GW manufacturing facility in Madhya Pradesh is being designed to meet international technical and quality benchmarks. From FY27 onwards, we are evaluating opportunities across the US, Europe, and West Asia, aligned with global supply-chain diversification trends and the growing preference for trusted, non-China manufacturing partners,” he said.
Addressing the Component Demand-Supply Gap
India is strengthening its solar PV manufacturing base through BCD, mandatory DCR, PLI incentives, ALMM norms, and anti-dumping duties. Under the PLI scheme for high-efficiency solar PV modules, in Tranche-I, the government allocated INR 4,500 crore for 8.737 GW of fully integrated manufacturing units.
In Tranche-II, letters of award were issued for 39.6 GW of fully/partially integrated units with a PLI allocation of INR 13,937.575 crore – including 15.4 GW of fully integrated (polysilicon to module), 16.8 GW of partially integrated (wafer to module), and 7.4 GW of cell + module capacity. Capacity expansion under the scheme has reached 2.2 GW at wafer, 9.7 GW at cell, and 18.6 GW at module stages, with further growth expected as ALMM expands upstream.
The government has already added solar cells to the ALMM to be effective from June 2026 and proposed including wafers from June 2028, contingent on at least three domestic wafer units with 15 GW combined capacity and matching ingot capability, to slowly build upstream capacity and address the demand-supply mismatch.
Further, major players in the industry have announced ingot-wafer capacity expansion of over 50 GW. Tata Power Renewable Energy (TPREL) is establishing a 10 GW greenfield solar ingot and wafer manufacturing facility in Nellore, Andhra Pradesh, with an investment of INR 6,675 crore. Premier Energies is setting up a 10 GW ingot wafer line in Naidupeta, Andhra Pradesh, with a capex of around INR 5,900 crore. The first phase of 5 GW is expected to be commissioned by December 2027. Waaree Energies also announced developing 10 GW of ingot wafer capacity by FY27.
Adani Solar is the only manufacturer in the country with an active ingot-wafer capacity of 2 GW, and the company earlier announced its plan to extend it to 10 GW by 2027-28. ReNew announced investing INR 3,990 crore to build India's first 6 GW ingot–wafer plant in Andhra Pradesh.
Jakson Solar is establishing a 6 GW integrated manufacturing plant. “Upstream integration is a strategic long-term priority for us. Our long-term plan envisages up to 6 GW of integrated ingot, wafer, cell, and module capacity, aimed at enhancing self-reliance and supply security,” said Chanana.
Funding Realignment: A Strategic Shift?
In a memorandum, MNRE urged the Department of Financial Services (DFS) to issue appropriate guidance to banks, NBFCs, and renewable-energy lenders such as PFC, REC and IREDA to align lending decisions with market realities and long-term sectoral trends to ensure financial sustainability. It has recommended that banks and non-banking lenders prioritise financing integrated manufacturing projects and upstream segments such as polysilicon, ingots, wafers, and critical ancillaries like solar glass, rather than focusing on standalone solar module and cells projects.
“This represents a structurally positive shift in policy direction. The emphasis on upstream segments, which are significantly more capital-intensive, technologically complex, and execution-heavy, is likely to ensure that only well-capitalised and technically capable players undertake such investments, thereby improving overall industry quality and sustainability,” remarked Arya.
He further added, “Over the medium term, this shift in financing is expected to reshape India’s solar manufacturing ecosystem towards deeper vertical integration, enhancing supply-chain resilience, reducing geopolitical and import dependence risks, and improving cost competitiveness.”
Chanana voiced that this policy direction is likely to strengthen the sector structurally over the medium term. “Increased focus on upstream segments such as wafers and ingots will help India move from assembly-led manufacturing to deeper technology participation. Developing domestic upstream capacity can reduce exposure to global price volatility and geopolitical supply disruptions. Furthermore, more selective financing is expected to encourage long-term, committed investments, leading to a more resilient and sustainable manufacturing ecosystem,” he said.
Thadani added, “By ensuring steady investment in the raw materials segment, manufacturers of modules and cells will have access to high-quality inputs, which improves efficiency and product reliability. In the medium term, this approach is likely to make the industry more resilient and competitive globally. It encourages a balanced growth across the entire value chain, supports innovation, and provides confidence for both manufacturers and project developers to plan and scale sustainably.”
Funding Solar PV Manufacturing Expansion
The upstream components like cell, wafer, ingots and polysilicon are highly capital-intensive. So far, for the expansion of module and cell capacities, manufacturers have raised funds via Banks, NBFCs, in addition to capital markets via IPOs, QIP and NCDs.
Talking about funding Jakson Solar’s expansion, Chanana said, “We are sequencing our Phase II investments in ingots and wafers in line with anticipated ALMM timelines, ensuring readiness ahead of regulatory requirements. These investments will be undertaken with a measured approach to capital deployment, aligned with policy clarity, technology maturity, and market demand.”
Gautam Solar is in the process of setting up a 5 GW TOPCon solar cell line at its upcoming facility in Gwalior, Madhya Pradesh. The first phase of the project, which is of 2 GW, is expected to be commissioned by October 2026. “We are moving towards complete backward integration. Work has already begun on our 54-acre land parcel in Gwalior, MP, where we are setting up our solar cell manufacturing facility. Additionally, we have acquired 40 acres in Narmadapuram to establish ingot and wafer production,” Mohanka said.
He further added, “After the completion of Phase 1, we will launch our IPO, the proceeds from which will be used to finance Phase 2 of the project, adding an additional 3 GW capacity expected to be operational by October 2028.”
GREW Solar currently has 3 GW of cell manufacturing capacity in Madhya Pradesh, and is targeting to expand this to 8 GW by the end of this year. “At the same time, we are exploring opportunities to gradually participate in upstream segments like wafers, ingots, and polysilicon, aligned with government policies such as ALMM,” stated Thadani.
He further added, “Funding for these expansion plans will come from a mix of internal accruals, strategic partnerships, and market-based instruments. This approach allows us to grow responsibly, strengthen our capabilities, and contribute to India’s renewable energy goals.”
Thadani believes that the IPO route can be an effective way to raise capital while also broadening the company’s investor base. “We continue to assess the timing and market conditions for it. Alongside this, we remain open to other avenues such as debt financing or collaborations with industry partners, which allow us to scale efficiently and maintain flexibility,” he said.
Balancing Market Health with Global Ambition
The global solar value chain remains heavily concentrated in China, spanning polysilicon, ingots, wafers, cells, modules, as well as critical manufacturing equipment and core technologies. “In this context, there are no quick or easy solutions to achieving supply-chain resilience in the near term. Developing a robust and self-reliant ecosystem will require sustained policy support, long-term capital commitment, and technological capability-building,” asserted Arya.
Going forward, policy certainty, access to long-term and competitively priced financing, and global technology partnerships will be critical to accelerate capacity build-up and improve execution capabilities. “However, given the capital-intensive nature, technological complexity, and long gestation periods associated with polysilicon, ingot and wafer manufacturing, it is likely to take several years before India can meaningfully reduce import dependence and move towards true self-sufficiency (Aatmanirbharta) in this domain,” Arya said.
In a nutshell, India’s solar manufacturing story stands at a decisive crossroads. The country has built scale at remarkable speed, but scale without synchronised demand, cell–module alignment, export certainty, and transition clarity risks turning ambition into stranded capacity. To truly emerge as a global manufacturing hub, India must now shift from volume-led expansion to value-led competitiveness—anchored in integrated supply chains, cost efficiency, technology depth, and stable policy signals.
China’s experience offers both inspiration and warning: relentless price undercutting and wafer-thin margins may win short-term market share but invite trade barriers and long-term vulnerability. India’s pathway must be different – rooted in disciplined capacity planning, predictable incentives, strong domestic offtake, and sustained support for innovation and exports. Without a clear roadmap and timely restructuring mechanisms, the sector may end up building idle factories. With them, it can build globally competitive solar champions that power both India’s energy transition and its manufacturing future.
At the solar cell level, India is fast ramping up capacity, with the target of achieving indigenous solar cell manufacturing by 2028. ALMM-II enlisted capacity for solar cells has reached 26.79 GW, slightly below present demand – but this too is projected to exceed 100 GW by FY28, surpassing domestic needs as new projects come online, as per projections by CareEdge Ratings.
In sharp contrast, upstream segments such as polysilicon, ingots and wafers remain severely underdeveloped, with only about 2 GW of ingot and wafer capacity and no commercial polysilicon production in the country.
This represents a significant demand-supply gap within the solar PV supply chain, highlighting a structural imbalance. At the same time, mandatory DCR usage from June 2026 for government and subsidy-linked projects will exclude a large share of non-DCR modules from key demand segments, putting further strain on modules.
However, for a resilient solar PV supply chain, demand side push is required on the upstream components – creating a ‘Catch-22’ situation. For the overall health of the industry, the issue must be addressed right now to stop a bubble from forming.
Module Enters Overcapacity Territory
India's solar module manufacturing capacity has grown from 2.3 GW in 2014 to about 162 GW in February 2026. According to a projection by credit rating agency CareEdge Ratings, India’s solar module manufacturing capacity is expected to reach about 215-220 GWp by FY28, reflecting strong policy support and rising demand.
The All India Solar Industries Association (AISIA), in a letter to the MNRE in August 2025, warned that module manufacturing capacity has grown to nearly four times annual demand, and that unchecked lending could create unsustainable debt burdens and potential non-performing assets (NPAs) in the banking system. The association urged that banks increase due diligence before funding additional module or cell projects.
Consolidation on the Cards?
Experts within the industry aver that cell-module supply mismatch, combined with high leverage and thin margins among many OEMs, could trigger price crashes, cash-flow stress, and rising NPAs, turning an industrial expansion story into a financial risk.
Jatin Arya, Director at CareEdge Ratings, remarked, “The projected domestic demand for solar modules is expected to remain in the range of 50–55 GW (DC), indicating a significant demand–supply mismatch and structural oversupply, purely from a domestic perspective. In the near to medium term, the industry is likely to witness intensifying competition, margin compression, and consolidation, particularly impacting non-integrated and smaller module manufacturers, while integrated and scale players are expected to be relatively better positioned to withstand the pricing pressures.”
However, industry leaders look at it as a positive rather than a worrying sign. Vinay Thadani, Executive Director and CEO, GREW Solar, said, “The current phase reflects the speed at which India’s solar ecosystem is scaling. Strong policy direction, ambitious capacity targets, and growing domestic demand are creating long-term confidence across the value chain. In such phases, competition tends to push the industry towards better efficiency, higher quality, and stronger technological capabilities. Over time, this naturally leads to a more balanced and resilient market. We believe this momentum will ultimately strengthen India’s manufacturing base, improve global competitiveness, and support sustainable growth rather than restrict it.”
Gagan Chanana, Jt. MD and CEO of Jakson Solar, remarked, “We see the current situation less as a slowdown and more as a natural phase of industry maturation. India’s solar manufacturing ecosystem is transitioning from a supply-constrained market to a more competitive and diversified one. This is a healthy sign of sectoral depth rather than distress.”
However, to complicate the scenario further, with low entry barriers, standalone module manufacturing unit keeps coming in as new players enter the segment. “While entry into basic module assembly remains relatively accessible, scaling high-efficiency, end-to-end manufacturing with strong quality controls and R&D capabilities requires significant capital and expertise,” opined Chanana.
Chanana believes that over time, the market is likely to rationalise capacity, with well-integrated and quality-focused manufacturers gaining strength, while less differentiated players may recalibrate their strategies. “As projects become larger and more sophisticated, bankability, performance guarantees, and long-term reliability will increasingly outweigh short-term price considerations, helping stabilise the ecosystem,” he said.
Strategies to Overcome the Glut
In the meantime, manufacturers must calibrate their strategies with the realities of domestic overcapacity. To adapt to this, they are looking at two major directions: Captive consumption through EPC and Exports.
“Our approach is built around diversification, integration, and global alignment. Our presence across manufacturing, EPC, project development, and O&M allows us to absorb capacity through our internal project pipeline, providing stability even during periods of market imbalance,” emphasised Chanana.
“Our focus is on delivering high-quality solar modules to meet the growing demand in India and abroad. While the market is expanding rapidly, we continue to optimise our production and cater to reliable domestic project partners. At the same time, we are actively exploring export opportunities, ensuring our products meet international standards and certifications. This balanced approach helps us stay resilient, maintain strong partnerships, and continue driving sustainable growth in a competitive environment,” remarked Thadani.
Gautam Mohanka, Managing Director, Gautam Solar, asserted that Non-ALMM listed modules will not be viable to be traded in the Indian markets. “Regardless of the cell capacity and ingot-wafer capacity, we are hoping to expand our reach in the international market, which is highly profitable for solar energy solutions. At the end, we want to ensure our solutions can reach a global stage and be trusted for their performance and reliability across borders,” he said.
Arya is optimistic about the export-led growth. “The recent reduction in tariffs by the US, along with improving trade access to markets such as the Middle East, Europe and Africa, could provide export-led demand support over the medium to long term, partially mitigating domestic oversupply pressures,” he said.
Chanana informed that Jakson Solar is also steadily expanding its export footprint. “Our upcoming 6 GW manufacturing facility in Madhya Pradesh is being designed to meet international technical and quality benchmarks. From FY27 onwards, we are evaluating opportunities across the US, Europe, and West Asia, aligned with global supply-chain diversification trends and the growing preference for trusted, non-China manufacturing partners,” he said.
Addressing the Component Demand-Supply Gap
India is strengthening its solar PV manufacturing base through BCD, mandatory DCR, PLI incentives, ALMM norms, and anti-dumping duties. Under the PLI scheme for high-efficiency solar PV modules, in Tranche-I, the government allocated INR 4,500 crore for 8.737 GW of fully integrated manufacturing units.
In Tranche-II, letters of award were issued for 39.6 GW of fully/partially integrated units with a PLI allocation of INR 13,937.575 crore – including 15.4 GW of fully integrated (polysilicon to module), 16.8 GW of partially integrated (wafer to module), and 7.4 GW of cell + module capacity. Capacity expansion under the scheme has reached 2.2 GW at wafer, 9.7 GW at cell, and 18.6 GW at module stages, with further growth expected as ALMM expands upstream.
The government has already added solar cells to the ALMM to be effective from June 2026 and proposed including wafers from June 2028, contingent on at least three domestic wafer units with 15 GW combined capacity and matching ingot capability, to slowly build upstream capacity and address the demand-supply mismatch.
Further, major players in the industry have announced ingot-wafer capacity expansion of over 50 GW. Tata Power Renewable Energy (TPREL) is establishing a 10 GW greenfield solar ingot and wafer manufacturing facility in Nellore, Andhra Pradesh, with an investment of INR 6,675 crore. Premier Energies is setting up a 10 GW ingot wafer line in Naidupeta, Andhra Pradesh, with a capex of around INR 5,900 crore. The first phase of 5 GW is expected to be commissioned by December 2027. Waaree Energies also announced developing 10 GW of ingot wafer capacity by FY27.
Adani Solar is the only manufacturer in the country with an active ingot-wafer capacity of 2 GW, and the company earlier announced its plan to extend it to 10 GW by 2027-28. ReNew announced investing INR 3,990 crore to build India's first 6 GW ingot–wafer plant in Andhra Pradesh.
Jakson Solar is establishing a 6 GW integrated manufacturing plant. “Upstream integration is a strategic long-term priority for us. Our long-term plan envisages up to 6 GW of integrated ingot, wafer, cell, and module capacity, aimed at enhancing self-reliance and supply security,” said Chanana.
Funding Realignment: A Strategic Shift?
In a memorandum, MNRE urged the Department of Financial Services (DFS) to issue appropriate guidance to banks, NBFCs, and renewable-energy lenders such as PFC, REC and IREDA to align lending decisions with market realities and long-term sectoral trends to ensure financial sustainability. It has recommended that banks and non-banking lenders prioritise financing integrated manufacturing projects and upstream segments such as polysilicon, ingots, wafers, and critical ancillaries like solar glass, rather than focusing on standalone solar module and cells projects.
“This represents a structurally positive shift in policy direction. The emphasis on upstream segments, which are significantly more capital-intensive, technologically complex, and execution-heavy, is likely to ensure that only well-capitalised and technically capable players undertake such investments, thereby improving overall industry quality and sustainability,” remarked Arya.
He further added, “Over the medium term, this shift in financing is expected to reshape India’s solar manufacturing ecosystem towards deeper vertical integration, enhancing supply-chain resilience, reducing geopolitical and import dependence risks, and improving cost competitiveness.”
Chanana voiced that this policy direction is likely to strengthen the sector structurally over the medium term. “Increased focus on upstream segments such as wafers and ingots will help India move from assembly-led manufacturing to deeper technology participation. Developing domestic upstream capacity can reduce exposure to global price volatility and geopolitical supply disruptions. Furthermore, more selective financing is expected to encourage long-term, committed investments, leading to a more resilient and sustainable manufacturing ecosystem,” he said.
Thadani added, “By ensuring steady investment in the raw materials segment, manufacturers of modules and cells will have access to high-quality inputs, which improves efficiency and product reliability. In the medium term, this approach is likely to make the industry more resilient and competitive globally. It encourages a balanced growth across the entire value chain, supports innovation, and provides confidence for both manufacturers and project developers to plan and scale sustainably.”
Funding Solar PV Manufacturing Expansion
The upstream components like cell, wafer, ingots and polysilicon are highly capital-intensive. So far, for the expansion of module and cell capacities, manufacturers have raised funds via Banks, NBFCs, in addition to capital markets via IPOs, QIP and NCDs.
Talking about funding Jakson Solar’s expansion, Chanana said, “We are sequencing our Phase II investments in ingots and wafers in line with anticipated ALMM timelines, ensuring readiness ahead of regulatory requirements. These investments will be undertaken with a measured approach to capital deployment, aligned with policy clarity, technology maturity, and market demand.”
Gautam Solar is in the process of setting up a 5 GW TOPCon solar cell line at its upcoming facility in Gwalior, Madhya Pradesh. The first phase of the project, which is of 2 GW, is expected to be commissioned by October 2026. “We are moving towards complete backward integration. Work has already begun on our 54-acre land parcel in Gwalior, MP, where we are setting up our solar cell manufacturing facility. Additionally, we have acquired 40 acres in Narmadapuram to establish ingot and wafer production,” Mohanka said.
He further added, “After the completion of Phase 1, we will launch our IPO, the proceeds from which will be used to finance Phase 2 of the project, adding an additional 3 GW capacity expected to be operational by October 2028.”
GREW Solar currently has 3 GW of cell manufacturing capacity in Madhya Pradesh, and is targeting to expand this to 8 GW by the end of this year. “At the same time, we are exploring opportunities to gradually participate in upstream segments like wafers, ingots, and polysilicon, aligned with government policies such as ALMM,” stated Thadani.
He further added, “Funding for these expansion plans will come from a mix of internal accruals, strategic partnerships, and market-based instruments. This approach allows us to grow responsibly, strengthen our capabilities, and contribute to India’s renewable energy goals.”
Thadani believes that the IPO route can be an effective way to raise capital while also broadening the company’s investor base. “We continue to assess the timing and market conditions for it. Alongside this, we remain open to other avenues such as debt financing or collaborations with industry partners, which allow us to scale efficiently and maintain flexibility,” he said.
Balancing Market Health with Global Ambition
The global solar value chain remains heavily concentrated in China, spanning polysilicon, ingots, wafers, cells, modules, as well as critical manufacturing equipment and core technologies. “In this context, there are no quick or easy solutions to achieving supply-chain resilience in the near term. Developing a robust and self-reliant ecosystem will require sustained policy support, long-term capital commitment, and technological capability-building,” asserted Arya.
Going forward, policy certainty, access to long-term and competitively priced financing, and global technology partnerships will be critical to accelerate capacity build-up and improve execution capabilities. “However, given the capital-intensive nature, technological complexity, and long gestation periods associated with polysilicon, ingot and wafer manufacturing, it is likely to take several years before India can meaningfully reduce import dependence and move towards true self-sufficiency (Aatmanirbharta) in this domain,” Arya said.
In a nutshell, India’s solar manufacturing story stands at a decisive crossroads. The country has built scale at remarkable speed, but scale without synchronised demand, cell–module alignment, export certainty, and transition clarity risks turning ambition into stranded capacity. To truly emerge as a global manufacturing hub, India must now shift from volume-led expansion to value-led competitiveness—anchored in integrated supply chains, cost efficiency, technology depth, and stable policy signals.
China’s experience offers both inspiration and warning: relentless price undercutting and wafer-thin margins may win short-term market share but invite trade barriers and long-term vulnerability. India’s pathway must be different – rooted in disciplined capacity planning, predictable incentives, strong domestic offtake, and sustained support for innovation and exports. Without a clear roadmap and timely restructuring mechanisms, the sector may end up building idle factories. With them, it can build globally competitive solar champions that power both India’s energy transition and its manufacturing future.
Please share!
If you want to cooperate with us and would like to reuse some of our content,
please contact: contact@energetica-india.net.
please contact: contact@energetica-india.net.
Next events
Last interviews
Hartek Singh
CMD
Energy Security Has Evolved into a Strategic Imperative for India: Hartek Singh
Ratul Puri
Chairman
Geopolitics Reshaping Solar Strategy, Says Hindustan Power's Chairman Ratul Puri
Bhavesh Patidar
Founder and Director
Solar Shifts Farming from Constraint to Opportunity, Says Solarsure’s Bhavesh Patidar
Pankaj Tyagi
VP - Solar and Storage
Solar Plus Storage Is Key to India’s Clean Energy Future: BluPine’s Pankaj Tyagi
Ravi Rao
Founder and MD
We Aim to Build 5 GW Capacity Across the Entire Solar Value Chain, Says Future Solar's Ravi Rao
Follow us