India added nearly 119 GW of solar module and over 9 GW of solar cell capacity in 2025, according to Mercom India’s State of Solar PV Manufacturing in India 2026 report.

The manufacturing expansion was driven by demand from India’s large utility-scale solar project pipeline, residential rooftop targets, the PM Surya Ghar program, and the Approved List of Models and Manufacturers (ALMM) List-II domestic cell mandate.

As a result of these policy initiatives, the country’s cumulative module manufacturing capacity reached approximately 210 GW, while cumulative cell capacity stood at roughly 27 GW by December 2025. Of this, module capacity under ALMM List-I stood at 173.1 GW, while cell capacity under ALMM List-II was nearly 26.5 GW as of this report’s release. Currently, the ALMM-certified cell capacity accounts for only 15.3% of ALMM-certified module capacity.

Priya Sanjay, Managing Director at Mercom India, said the ALMM mandate was the primary driver of growth in the solar manufacturing segment. The pace is accelerated by the June deadline, when it becomes compulsory to use domestic modules with cells made in India for most projects, except behind-the-meter projects.

She added that the PM Surya Ghar program has increased demand, as the government has mandated domestic content requirements (DCR) for modules under the program. Additionally, several open access solar projects for commercial and industrial (C&I) customers are being operationalized, adding to the growth.

The top 10 manufacturers accounted for 44% of the cumulative module capacity and 99.5% of the cumulative cell production capacity, highlighting a high level of consolidation in the sector.

In terms of technology, monocrystalline cells accounted for more than 57% of production capacity, followed by TOPCon at over 39%. Polycrystalline cells accounted for a small share, approximately 3.5%.

“Domestic cell manufacturing capacity is expected to begin increasing on paper after March based on commissioning timelines, ahead of the ALMM domestic cell mandate taking effect in June. However, newly commissioned production lines typically take about eight months to stabilize and reach optimal yields. As a result, installed capacity may appear to rise after March, but the effective supply available to module manufacturers will increase more gradually, with meaningful availability likely emerging only toward the end of the year as new facilities complete their stabilization cycles,” said Raj Prabhu, CEO of Mercom Capital Group.

TOPCon dominated module manufacturing by the end of 2025, accounting for around 70% of the module production installed capacity, followed by monocrystalline modules at more than 25%. Polycrystalline and thin-film modules each accounted for roughly 2%.

Heterojunction Technology (HJT) module manufacturing capacity, accounting for approximately 1% of the total capacity added, was included for the first time.

“Solar module manufacturing in India is ripe for consolidation. Declining mono PERC demand, lower utilization at smaller facilities, and rising capital requirements are shifting market share toward larger, integrated, and more efficient manufacturers,” added Prabhu.

Gujarat emerged as the leading module manufacturing hub as of December 2025, accounting for about 45% of module production capacity, followed by Rajasthan with 10% and Tamil Nadu with 7%.

In cell manufacturing as well, Gujarat led among states, accounting for 45% of the total production capacity. It was followed by Tamil Nadu and Karnataka at 16% and 13%, respectively.

Commenting on Gujarat leading the way in the solar manufacturing business, Sanjay said that the state is well-positioned geographically and has the basic infrastructure for solar manufacturing companies to establish their facilities.

“The state is close to Rajasthan and Maharashtra, major solar markets, contributing to Gujarat’s success. Also, in terms of exports and imports, it has ports, which give it the tailwind as compared to other states. The government is very keen on supporting existing industries and attracting new ones to the state. This has led to the growth of industry clusters in the state, which further contributes to the growth of the solar manufacturing business,” Sanjay noted.

Despite strong domestic capacity additions, India imported around 99 GW of solar modules and cells in 2025, with cells accounting for 75% of the imports.

Domestic manufacturers exported roughly 5 GW of modules and 192 MW of cells. The U.S. emerged as the largest market for modules, with 96.8% of total exports going to the country, while 57% of cell exports went to the UAE.

Mercom’s Mercom India’s State of Solar PV Manufacturing in India 2026 is 131 pages long and covers all facets of India’s solar PV manufacturing market, including an overview of demand and supply, top manufacturers, market outlook and projections, manufacturing trends, and other details.

For the complete report, visit: https://www.mercomindia.com/product/state-solar-manufacturing-india-2026