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India Added 20.8 GW of Solar Module and 3.2 GW of Cell Manufacturing Capacity in 2023

Cumulative solar module manufacturing capacity reached 64.5 GW

March 29, 2024 – In calendar year (CY) 2023, the country added 20.8 gigawatts (GW) of solar modules and 3.2 GW of solar cell capacity, according to the recently released Mercom India research report, State of Solar PV Manufacturing in India 2024.

Manufacturing capacity additions in 2023 were primarily driven by the anticipated reimposition of the Approved List of Models and Manufacturers (ALMM) order starting in April 2024, as well as potential export opportunities.

The country’s cumulative solar module manufacturing capacity reached 64.5 GW, and solar cell manufacturing capacity totaled 5.8 GW as of December 2023.

The top 10 manufacturers accounted for 62% of the module and 100% of cell production capacity as of December 2023.

About 60% of the installed module manufacturing capacity was equipped to manufacture solar modules in M10 and G12 wafer sizes. Only 22.2 GW of the total module production capacity was enlisted under the ALMM order per the updated List–I issued by MNRE as of January 2024.

Monocrystalline modules accounted for 67.5% of the country’s module production capacity, followed by polycrystalline, Tunnel Oxide Passivated Contact (TOPCon), and thin film modules.

Module manufacturing capacity

Module manufacturing capacity is projected to surpass 150 GW, and cell capacity is expected to reach over 75 GW by 2026.

Based on the current pipeline, monocrystalline modules are anticipated to represent 59.7% of the annual module production capacity and 50.5% of the cell production capacity by 2026, followed by TOPCon, Heterojunction (HJT), and other technologies.

“As Indian manufacturers continue to invest in expanding their solar panel production capacities, they need to carefully navigate through the complexities of geopolitical tensions and trade disputes. Cheaper Chinese products will continue to challenge the competitiveness of locally-produced modules. A policy change in the U.S., post-elections, could potentially shrink export opportunities, and demand for solar energy in India needs to ramp up significantly to consume the projected increase in module production in the coming three years,’ said Raj Prabhu, CEO of Mercom Capital Group.

photovoltaic (PV) manufacturing capacity

Gujarat led the country’s photovoltaic (PV) manufacturing capacity, accounting for 46.1% of solar modules. Telangana accounted for 39% of annual solar cell production capacity, the highest in the country as of December 2023.

Rajasthan and Tamil Nadu ranked second and third for solar module production capacities, accounting for 9.3% and 7.6%. Gujarat and Himachal Pradesh were second and third, with solar cell production contributing 34.7% and 13.9% of total capacities in the country.

Mercom India Research

Various public sector and government entities issued tenders totaling 9.7 GW to procure solar modules in 2023, up 275.6% YoY.

India imported 16.2 GW of modules, the highest in a year, up 158% YoY from 10.3 GW in 2022. Domestic manufacturers exported 4.8 GW of solar modules in 2023, up 204% compared to 1.6 GW in 2022.

India imported 15.6 GW of solar cells in CY 2023, up 169% YoY from 5.8 GW. India’s solar cell exports reached 286.3 MW in 2023, up 2,765% from 10 MW in 2022.

Key Highlights from Mercom India Research’s State of Solar PV Manufacturing in India 2024 Report:

India added 20.8 GW of module capacity and 3.2 GW of cell capacity in CY 2023

The country’s solar module and cell capacities are expected to exceed over 150 GW and 75 GW by 2026

The top three states for solar module manufacturing were Gujarat, Rajasthan, and Tamil Nadu

Telangana, Gujarat, and Himachal Pradesh were the top three states for solar cell manufacturing capacity

In 2023, various public sector and government entities issued 9.7 GW of tenders to procure solar modules

India’s solar PV module and cell imports were up 158% and 169%, respectively

India’s solar PV module and cell exports were up 204% and 2,765%, respectively

Mercom’s 2023 State of Solar PV Manufacturing in India Report is 89 pages long and covers all facets of India’s solar PV manufacturing market, including top manufacturers.

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