As India prepares to build out its solar module manufacturing capacity, Gujarat has emerged as an overwhelmingly favorite destination for domestic manufacturers, accounting for more than half of the country’s module-making capacity and roughly 30% of cell manufacturing capacity.

The state has benefited from friendly industrial policies in the form of expedited and simpler compliance procedures. Additionally, the electricity tariff in the state is competitive and attracts manufacturing companies.

The details emerged in Mercom’s State of Solar Manufacturing in India report, released last month. It is a 58-page document and covers all facets of India’s solar manufacturing.

As of September 2022, India had the capacity to manufacture 39.5 GW of solar modules and 4.7 GW of cells, although the operational capacity was slightly lower.

The report projects module manufacturing capacity to increase by 28% by 2025 and cell capacity by 82% by 2024.

According to the report, Gujarat will continue to be the top destination, as 48% of the upcoming module and 54% of the planned cell capacity is projected to come up in the state.

The state’s industry-friendly policy has attracted manufacturers from across sectors. The state launched an Investor Facilitation Portal (IFP) in 2010 after the government introduced the Integrated Work Flow and Document Management System in 2006.

IFP acts as a single window for the state government’s approvals needed by investors.

The top three module manufacturers in the state were Waaree Energies, Adani Solar, and Goldi Solar.

Half of the module manufacturing capacity enlisted under the Approved List of Models and Manufacturers is from Gujarat.

Further, the state’s electricity tariffs for industrial customers range between ₹4(~$0.052)/kWh and ₹4.5 (~$0.056)/kWh, which are the lowest in the country and attractive to manufacturers.

Electricity accounts for a significant portion of the Indian solar module makers’ operating costs.

Based on current announcements, Gujarat-based Reliance Industries and Goldi Solar are expected to commence commercial production of HJT modules and cells by early 2025.

As with module manufacturing, Gujarat also leads the domestic annual solar cell production capacity.

Companies, including Waaree Energies, Goldi Solar, Adani Solar, ReNew Power, and Solex Energy, announced capacity additions for its production.

Mercom’s State of Solar Manufacturing in India report is 58 pages and covers all facets of India’s solar manufacturing. For the complete report, visit:  https://mercomindia.com/product/state-solar-manufacturing-india