New Delhi
India’s solar manufacturing capacity is set for a massive leap, with solar modules projected to touch 200 gigawatt-peak (GWp) and cells expected to reach 100 GWp by FY28, according to a CareEdge Ratings report. This will far exceed the annual domestic module demand of 50 GWp, leading to a stronger export focus in the coming years.
As of July 2025, India’s module manufacturing capacity stood at 118 GWp, while cell capacity was 27 GWp. However, operational capacity was lower — 80-85 GWp for modules and 11-13 GWp for cells — with the rest under stabilisation. This gap meant an annual production of 50-60 GWp modules and 8-10 GWp cells, forcing a 40-45 GWp import dependency for cells.
The expansion is being powered by rising solar installations, supportive government policies, and improved access to financing. Domestic cell capacity alone is projected to hit 100 GWp by FY28, requiring more than ₹55,000 crore in investments, largely through backward integration initiatives.
While pureplay module manufacturers may face consolidation due to margin pressures, integrated players are expected to weather the challenge better thanks to cost efficiencies.
Jatin Arya, Director at CareEdge Ratings, said the sector enjoys several tailwinds, including robust demand, favourable policies, and better financing avenues. However, he cautioned that risks remain from supply chain dependence on China, uncertainty over exports, and delays in renewable capacity additions.
The report also noted that lower GST rates could reduce project costs by 4–5 percent, though tightening US policies may affect exports. Still, India’s solar manufacturing outlook remains promising if companies maintain competitiveness.