India added 25.3 GW of solar module capacity and 11.6 GW of solar cell capacity in calendar year (CY) 2024, according to Mercom’s recently released State of Solar PV Manufacturing in India 2025 report.

The manufacturing capacity additions in 2024 were primarily driven by demand from the solar project pipeline and the reimposition of the Approved List of Models and Manufacturers (ALMM) order from April 2024.

Priyadarshini Sanjay, Managing Director of Mercom India, stated, “The ALMM List I and List II have been the primary drivers of solar module and cell manufacturing capacity additions in India.” The manufacturing sector saw a record number of plants come online in 2023 and 2024, banking on the visibility created by the ALMM regulations. The growth in 2024 may appear slow, as the manufacturing sector began adding significant capacity in the previous years. We can expect to see further additions to solar cell manufacturing capacity in the future.”

The top 10 manufacturers accounted for over 54% of the module and almost 100% of cell production capacity as of December 2024.

Over 80% of the installed module manufacturing capacity was equipped to manufacture solar modules in M10 and G12 wafer sizes.

An estimated 64.6 GW of the total module production capacity was enlisted under the ALMM order, as per the updated List–I issued by the Ministry of New and Renewable Energy (MNRE) as of January 6, 2025.

Monocrystalline modules, with or without Passivated Emitter and Rear Cell (PERC) technology, accounted for almost 59% of the country’s module production capacity, followed by Tunnel Oxide Passivated Contact (TOPCon) modules, polycrystalline modules, and thin-film modules.

Based on the current pipeline, monocrystalline modules are anticipated to account for over 58% of the annual module production capacity and 64% of the cell production capacity by 2027, followed by TOPCon, Heterojunction (HJT), and other technologies.

Discussing the challenges faced by the solar manufacturing sector, Sanjay noted that there is better visibility and policy support to ramp up manufacturing. Financial institutions and investors are now willing to fund manufacturing plants. However, module supply at competitive rates is crucial for developers to quote better tariffs in DISCOM tenders.

She also added that the government needs to make efforts to provide uninterrupted electricity at low prices and low-cost debt. Sanjay also highlighted that one of the challenges faced by manufacturing plants is the acquisition of land. The government must also make government land easily available and leaseable.

Gujarat was the most preferred location for installing photovoltaic manufacturing facilities, with 42% of the country’s module capacities located in the state. As of December 2024, Gujarat accounts for over 37% of the country’s annual solar cell production capacity, the highest in the nation.

Sanjay added that infrastructure, approvals, and state policies have made Gujarat the favored location for solar manufacturers. “Gujarat also shares proximity to seaports and is bordered by states with large solar installations. Solar component suppliers also find it logistically feasible to supply to areas with more manufacturing plants. The state also provides timely approvals for manufacturing plants and uninterrupted supply of power,” added Sanjay.

Tamil Nadu and Rajasthan were the other top states, accounting for nearly 10% and over 8% of the country’s solar module production capacity, respectively.

However, Karnataka and Tamil Nadu were the second and third largest contributors to solar cell production units, accounting for over 18% and 12% of the country’s total capacity, respectively.

 

Various public sector and government entities issued tenders totaling 9.9 GW to procure solar modules in 2024, representing an increase of over 6% Year-over-Year. In 2024, 1.7 GW of modules and 11.3 MW of cell supply auctions were concluded.

In 2024, a total of 65.9 GW of solar modules and cells were imported. Modules accounted for 36% of the imports, while cells accounted for 64%.

Domestic manufacturers exported over 4.5 GW of solar modules in 2024, a 6% decrease from the 4.8 GW exported in 2023.

“While India’s solar capacity additions have been impressive, the availability of domestically made modules and cells still lags. Average selling prices remain high, sourcing is a challenge, and now the new U.S. tariffs have added more uncertainty. For India to achieve its 280 GW solar target by 2030, it must address these bottlenecks and align its manufacturing capacity expansion policies with its development goals. For manufacturers, relying on exports as a growth strategy is looking increasingly risky right now,” said Raj Prabhu, CEO of Mercom Capital Group.

Mercom’s 2024 State of Solar PV Manufacturing in India Report is 110 pages long and covers all facets of India’s solar PV manufacturing market, including top manufacturers. For the complete report, visit: https://www.mercomindia.com/product/state-solar-manufacturing-india-2025