- Local Manufacturing Push: From June 2026, all clean energy projects in India must use solar modules made with locally-produced cells.
- Reduced Reliance on Imports: The policy aims to curb dependence on Chinese solar components, which currently power 70% of India’s solar capacity.
- Boost in Domestic Capacity: India’s solar cell manufacturing is set to scale up rapidly, with production expected to hit 95 GW by 2025.
India is taking a bold step to boost local manufacturing in its clean energy sector. Starting June 2026, all solar photovoltaic (PV) modules used in clean energy projects must be built using locally-made cells, according to a new directive from the renewable energy ministry. This move builds on existing rules requiring locally-made modules for government projects and aims to reduce the country’s reliance on imports, particularly from China.
“This condition will have to be followed irrespective of the date of commissioning,” the ministry clarified, underscoring the policy’s strict implementation.
Reducing Dependence on Imports
Currently, 70% of India’s solar power generation relies on Chinese equipment. With this policy, India aims to transition to a more self-reliant solar manufacturing ecosystem. While India’s module-making capacity stands at 80 GW, cell manufacturing capacity lags at just over 7 GW.
“The installed capacity of solar cells in the country is expected to increase substantially next year,” the ministry said, announcing plans to release a list of approved domestic cell manufacturers soon.
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Scaling Domestic Production
Major players in India’s energy sector are rapidly expanding solar cell manufacturing:
- Tata Power has commissioned a 4.3 GW plant in southern India.
- Reliance Industries plans to launch the first phase of its 20 GW integrated solar cell and module facility by year-end in Gujarat.
- Adani Group operates a 4 GW plant in the same region.
India added 13.3 GW of solar equipment manufacturing capacity in the first half of 2024 alone. A report by consulting firm Mercom India projects that solar panel production will reach 95 GW by 2025.
Aligning with Renewable Energy Goals
This mandate aligns with India’s ambitious plan to expand its non-fossil fuel capacity to 500 GW by 2030, up from the current 156 GW. The policy not only strengthens local manufacturing but also supports the nation’s transition to a sustainable energy future.
“India’s solar equipment manufacturing space has made rapid strides,” the Mercom India report highlighted, reflecting the sector’s growing potential.
By enforcing the use of locally-made solar cells, India is positioning itself as a leader in clean energy manufacturing while reducing dependency on imports. This policy will likely reshape the country’s renewable energy landscape, driving innovation and growth in the sector.
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