India Solar Manufacturing Investment Guide

India's solar manufacturing sector is expanding at a remarkable pace. Solar module manufacturing capacity has doubled from 38 GW in March 2024 to 74 GW in March 2025. Over the same period, solar photovoltaic (PV) cell manufacturing capacity has tripled to 25 GW. According to a report by SolarPower Europe, India’s solar cell manufacturing capacity is projected to reach 120 GW and module manufacturing capacity 160 GW by 2030. This expansion of India’s solar industry rests on the central government’s target of achieving 500 GW of non-fossil fuel-based electricity generation capacity by 2030. The 2025 Union Budget allocated ₹242.24 billion (approximately USD 2.7 billion) to the solar sector to support this goal. India’s emergence as a solar manufacturing hub is also closely tied to the ‘Make in India’ initiative, which emphasizes domestic production of critical inputs and goods. The Indian central government has further announced a roadmap to establish 40 GW of silicon wafer manufacturing capacity—and develop polysilicon production capability—by 2027, areas where India currently holds negligible presence. Policy Framework and Government Support Production-Linked Incentive (PLI) Scheme The PLI Scheme for High-Efficiency Solar PV Modules offers output-linked incentives over five years post-commissioning, with an allocation of ₹240 billion (approximately USD 2.7 billion). • Phase I awarded integrated module manufacturing capacity totaling 7 GW to Reliance Industries, Adani New Industries, and Shirdi Sai Electricals. • Phase II awarded 6 GW of integrated or partially integrated unit capacity to 11 companies. As of June 2025, the scheme has facilitated 18.5 GW of solar module capacity, 9.7 GW of cell capacity, and 2.2 GW of ingot and wafer capacity. Its focus lies in enhancing quality control across solar manufacturing and reducing import dependence to mitigate supply-chain risks. Reduction in Goods and Services Tax (GST) Effective 22 September 2025, the GST rate on solar equipment will be reduced from 12% to 5%. This reduction applies to solar panels, cells, and related renewable energy equipment, lowering project capital costs by approximately 5%. For developers, this translates to an estimated reduction of ₹0.10 (approx. USD 0.00011) per unit of solar power generated. Approved List of Models and Manufacturers (ALMM) India mandates that only manufacturers listed on the ALMM may supply equipment for government-supported projects. In 2014, the ALMM listed only 2.3 GW of module capacity; by August 2025, it had expanded to cover over 100 manufacturers across 123 factories, representing 100 GW of module capacity. A second ALMM list—specifically for solar cells—will come into effect in June 2026. Although the anti-dumping and countervailing duty (“two-anti”) framework benefits domestic suppliers, its intermittent implementation and reinstatement have raised concerns among developers and manufacturers.

2025 India Renewable Energy Exhibition – Renewable Energy India Expo 2025

• Numerous prominent domestic and international enterprises participate annually, many occupying large exhibition booths. The Indian Minister of Power attends the exhibition each year. In 2024, the exhibition hosted over 800 exhibitors across an exhibition area of 18,000 square meters, attracting as many as 52,000 professional visitors. Exhibition Scope: Ø Solar Energy: Solar thermal/photovoltaic products; solar panels and modules; solar water heaters; solar cookers; solar space heating and cooling systems; solar power generation systems; batteries; lamps; solar cells; PV modules; PV lighting systems and components; and related manufacturing equipment. Ø Wind Energy: Complete wind turbines; components and materials; project development and operations; wind farm management; installation and transportation services; financial investment; wind measurement/meteorological certification bodies; wind energy industry services; wind power testing and analytical systems; and wind power system integration. Ø Bioenergy: Manufacturers and service providers of analytical instruments; biodiesel/bioethanol distributors or refiners; manufacturers of biodiesel blending and mixing equipment; manufacturers of biomass heating and drying equipment; bioreactors; boilers; turbines and turbo-generators. Ø Hydropower: Component manufacturers; consultants and certification bodies; digital simulator manufacturers; generator and control equipment manufacturers and suppliers; turbine manufacturers; mechanical and hydraulic product manufacturers and suppliers; performance testing equipment manufacturers. Ø Geothermal Energy: Component manufacturers; drilling engineering firms; circuit protection devices; geothermal and rotary compressors; drilling and air-drilling tools; mechanical drawing readers; high-temperature instrumentation; and waste-heat recovery power plants. Ø Energy Efficiency: High-efficiency, energy-saving equipment for power generation, transmission, and distribution; industrial and decorative lighting equipment. Market Insights: According to Mercom India Research—a leading analysis and consulting firm—India’s solar module manufacturing capacity is expected to reach approximately 95 GW by 2025, up from 39 GW as of end-September 2022. The report “Status of Solar PV Manufacturing in India” indicates that domestic solar cell manufacturing capacity stood at around 4.7 GW as of last September, and is projected to reach 32 GW by end-2024. Additionally, polysilicon, silicon ingot, and silicon wafer manufacturing capacities in India are also expected to witness “substantial” growth by end-2024.

India's Waaree Energies to Merge Indosolar in Near-$100 Million Deal

Sep 23, 2026

Waaree Energies will merge Indosolar in a $99.23 million deal to integrate cell and module manufacturing for cost savings. Indosolar shareholders will receive one Waaree share for every 11 shares held.

reuters

2026-09-23

India's Waaree Energies to Merge Indosolar in Near-$100 Million Deal

India's Waaree Energies to Merge Indosolar in Near-$100 Million Deal

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