About 18 GW Of Module And 14 GW Of Cell Production Capacity To Be Added By CY2023 in India

Solar photovoltaic (PV) manufacturing industry of India, of late, has been receiving significant impetus. Currently, India has a PV manufacturing base of 18 GW for solar module and 4 GW for solar cell. The module production capacity is anticipated to grow at an unprecedented rate of ~40% (CAGR) over the next 2 years.

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Figure 1: Leading Domestic Solar PV Manufacturers in India (As of December 2021)

Source: JMK Research

Announcements in the past year by industry leaders or new entrants exploring the market indicate solar manufacturing will be a key area of growth domestically. Cumulatively, about 18 GW of module and 14 GW of cell production capacity are in the pipeline to add to the existing domestic capacity by CY2023. In addition, Indian government’s production-linked incentive (PLI) scheme for solar PV manufacturing will be a major catalyst for the whole solar industry, being allocated a total budget of Rs. 24,000 crores and expected to incentivize about 40-50 GW of module production capacity.

Figure 2: Trend Forecast – Cumulative Domestic Solar Cell & Module Manufacturing Capacity

Source: JMK Research

New entrants in solar manufacturing in India are targeting GW-scale installation capacities as well as upstream integration, in line with what the Government of India (GoI) is trying to achieve with its PLI scheme for solar modules. In the meantime, the relevant industry stakeholders also need to focus on upskilling the workforce, boosting R&D infrastructure and most crucially, adopting uniform, long-term policies for the Indian solar sector. India is currently not a hub of solar manufacturing but there is great potential, and confidence, in its solar growth story.