New Delhi [India], December 10 : In a significant move to bolster domestic manufacturing and reduce reliance on Chinese imports, the Indian Ministry of Renewable Energy has mandated the exclusive use of locally manufactured solar cells in government-backed clean energy projects starting June 2026. This policy extension aligns with India’s broader strategy to enhance its renewable energy capabilities and foster self-reliance in the solar energy sector.
New Solar Cell Mandate: Strengthening Domestic Production
Currently, Indian government projects require the use of photovoltaic (PV) modules produced by manufacturers listed on an approved roster. This new directive extends that requirement to solar cells, signaling a more comprehensive push toward indigenization of solar technology components.
- Capacity Goals: India plans to elevate its non-fossil fuel capacity to 500 gigawatts (GW) by 2030, up from the current 156 GW.
- Current Solar Manufacturing Landscape:
- Solar PV module-making capacity: ~80 GW.
- Solar cell-making capacity: Slightly over 7 GW, with a heavy dependence on imported Chinese cells.
To support this transition, the government will release a list of approved domestic cell manufacturers, expecting a substantial increase in solar PV cell production capacity in the coming year.
Key Players Driving India’s Solar Manufacturing Boom
Several prominent Indian companies are investing heavily in solar cell and module production, including:
- Tata Power:
- Commissioned a 4.3 GW solar cell manufacturing facility in southern India.
- Reliance Industries:
- Aims to operationalize the first phase of its 20 GW integrated solar cell and module production plant in Gujarat by the end of this year.
- Adani Group:
- Established a 4 GW cell and module production facility in Gujarat.
- Waaree Energies, Vikram Solar, and Solex Energy:
- Actively expanding their solar cell manufacturing capacities to meet growing domestic demand.
Challenges and Opportunities
While the push for local manufacturing marks a step toward self-sufficiency, it comes with challenges:
- Price Sensitivity:
Domestically produced solar modules using local cells may be costlier than those made with imported cells. Scaling up production and optimizing manufacturing costs will be critical for competitiveness. - Economic Impact:
Vikram V, Vice President of Corporate Ratings at ICRA, emphasized that scaling up production and improving cost economics are crucial for India’s solar manufacturing success.
India’s Path to Renewable Leadership
This policy forms part of India’s larger renewable energy mission, which seeks to establish the country as a global leader in clean energy while reducing dependency on foreign imports.
The solar manufacturing expansion aligns with Prime Minister Narendra Modi’s vision of “Atmanirbhar Bharat” (self-reliant India), enabling economic growth through enhanced domestic production.
FAQs
1. What is the significance of the June 2026 mandate?
From June 2026, all government-backed solar projects in India must exclusively use domestically manufactured solar cells, extending the current local PV module requirement.
2. How does this policy impact India’s renewable energy goals?
The policy supports India’s target of achieving 500 GW of non-fossil fuel capacity by 2030 while fostering domestic manufacturing and reducing reliance on imports.
3. Which companies are leading India’s solar manufacturing expansion?
Key players include Tata Power, Reliance Industries, Adani Group, Waaree Energies, Vikram Solar, and Solex Energy, all of which are investing in large-scale solar cell production.
4. Will the cost of solar energy increase due to this mandate?
Initially, locally produced modules may cost more than imported alternatives. However, scaling production and improving manufacturing efficiencies could mitigate price differences over time.
5. How does this policy align with India’s Atmanirbhar Bharat initiative?
By emphasizing local production, the policy strengthens India’s self-reliance in renewable energy, aligning with the broader vision of Atmanirbhar Bharat.
