India added 37 GW of new solar cell and module production capacity in 2024 as the government’s Approved List of Models and Manufacturers (ALMM) policies gained traction, according to a new report by Mercom India Research. It expects further additions to solar cell manufacturing capacity in the future.
Last year, India added 25.3 GW of solar module and 11.6 GW of solar cell capacity as demand for domestically produced products expands. This remains highly concentrated as the top 10 manufacturers accounted for more than 54% of module and almost 100% of cell production capacity as of December 2024.
Mercom estimates India’s total module production capacity at 64.6 GW, as enlisted under the ALMM List-I for solar modules as of January 6, 2025.
More than 80% of the country’s total installed module manufacturing capacity was equipped to manufacture M10 and G12 wafer-sized solar modules. Almost 59% of India’s module capacity comprised monocrystalline modules, with or without PERC, TOPCon comes next, followed by polycrystalline and then thin-film modules.
By 2027, monocrystalline technology is expected to dominate India’s solar manufacturing, leading both module and cell production capacity with over 58% market share. TOPCon, heterojunction (HJT) and other technologies will follow.
Mercom India’s Managing Director Priyadarshini Sanjay said that manufacturers want the government to facilitate uninterrupted electricity supply at low prices and low-cost debt, while providing support with land availability. This will aid module supply at competitive rates, enabling developers to quote better tariffs. Nonetheless, there is better visibility and policy support for solar manufacturing, drawing investor interest.
Most of the country’s solar PV production capacity is located in the Indian Prime Minister Narendra Modi’s home state of Gujarat, as it shares proximity to seaports. It is also bordered by states with large solar installations, points out Sanjay. As of December 2024, Gujarat had 42% of the country’s cumulative solar module production capacity and more than 37% of its cell capacity.
“Suppliers also find it logistically feasible to supply to areas with more manufacturing plants. The state also provides timely approvals for manufacturing plants and uninterrupted supply of power,” she adds.
Tamil Nadu follows Gujarat in terms of states with the largest volume of module production capacity, with a nearly 10% share, followed by Rajasthan with 8%.
In terms of solar cell production, Karnataka accounts for over 18% and Tamil Nadu 12% capacity, after Gujarat.
Yet, India continues to rely on imports to meet its annual requirement. Mercom counts the country to have imported 65.9 GW of solar modules and cells, with modules accounting for 36% of the imports in 2024 and cells 64%.
“While India’s solar capacity additions have been impressive, the availability of domestically made modules and cells still lags. Average selling prices remain high, sourcing is a challenge, and now the US tariffs have added more uncertainty,” opines Mercom Capital Group CEO Raj Prabhu.
Solar module exports of Indian manufacturers also declined by 6% year-on-year (YoY) from 4.8 GW in 2023 to 4.5 GW in 2024.
Prabhu cautions that Indian manufacturers shouldn’t be relying on exports as a growth strategy, as this is ‘increasingly risky’ right now.
The complete Mercom report titled State of Solar PV Manufacturing in India 2025 can be purchased on its website.
According to the Ministry of New and Renewable Energy (MNRE), India’s total solar module manufacturing capacity stood at 74 GW in March 2025, with cell capacity reaching 25 GW. During FY 2024-25, India’s maiden ingot-wafer manufacturing facility, with 2 GW capacity, came online (see India’s RE Capacity Grows by 25 GW in FY2024-25, Solar Dominates).
Team TaiyangNews will be in India on April 10-11, 2025 at the TaiyangNews Solar Technology Conference India 2025 in New Delhi. It will bring together leading names from the Indian solar PV industry along with technologists and scientists that are helping create a resilient solar manufacturing industry in the country. Last minute registrations are currently on here.
