India’s solar manufacturing capacity reaches 60 GW

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India became the fourth country globally to surpass 100 GW of total installed solar PV capacity in February 2025, achieving this milestone through rapid growth, with over half of the capacity added in just the last three years.

Solar installations in India surged from 2.8 GW in 2014 to approximately 102 GW by early 2025, driven by a cohesive policy framework, strong regulatory support, and effective project execution. With a national target of 500 GW renewable energy capacity by 2030, India plans to add another 200 GW of solar over the next five years.

As of February 2025, solar accounted for about 61 percent of India’s 167 GW of total installed renewable capacity, with 79 GW coming from utility-scale projects and 16 GW from rooftop installations, according to a report from Solar Europe.

India’s solar journey was significantly shaped by the Jawaharlal Nehru National Solar Mission (JNNSM), launched in 2010 under the National Action Plan on Climate Change, which facilitated large-scale solar deployment, encouraged domestic manufacturing, and reduced tariffs from 10.95 INR/kWh in 2010 to 2.5–2.6 INR/kWh.

India solar installations in 2024
India solar installations in 2024

In January 2024, the government introduced a new rooftop solar scheme targeting installations in 10 million homes and widespread adoption in public and commercial buildings. Complementing this, the PM-KUSUM Scheme, launched in 2019, promotes decentralised solar adoption among farmers, supports the transition away from diesel in agriculture, and enhances energy access and security in rural areas.

Solar manufacturing

In 2024, India’s solar industry reached an annual production capacity of 60 GW, reinforcing its status as a major global player in solar manufacturing. With continued policy backing and targeted investments, India aims to boost its solar module production capacity to 100 GW by 2030.

Key initiatives supporting this growth include import tariffs of 20 percent on solar cells and 40 percent on modules, the implementation of approved lists for domestic manufacturers, Domestic Content Requirements (DCR), and the Rs. 24,000 crore (3 billion USD) Production Linked Incentive (PLI) Scheme aimed at incentivizing local PV manufacturing.

Projections indicate that solar module capacity will grow from 80 GW in 2025 to 160 GW by 2030, while solar cell capacity is expected to rise from 15 GW to 120 GW.

Wafers and polysilicon production capacities are also set to expand significantly, from 6 GW in 2025 to 100 GW by 2030.

Challenges

India has rapidly transformed its energy sector, emerging as a global leader in solar power through ambitious targets, supportive policies, and a rapidly expanding solar capacity. While progress has been significant, sustaining and accelerating this momentum will require overcoming key policy, infrastructure, and investment challenges.

Critical measures include expanding grid infrastructure via Green Energy Corridors, extending ISTS waivers, simplifying open access regulations, and providing policy clarity for rooftop solar. Enhancing domestic manufacturing through refinements in the PLI and ALMM frameworks, along with incentives for PV recycling and Agrivoltaics, will strengthen self-reliance and solidify India’s leadership in solar technology and supply chains.

The National Solar Energy Federation of India (NSEFI) plays a central role in addressing industry issues such as benchmark cost setting, implementation hurdles, and sectoral innovation. Initiatives like Panels of India aim to build a robust manufacturing ecosystem, Ghar ke Upar Solar is Super encourages rooftop adoption, and Solar Recycle India promotes sustainable PV waste management.

Other efforts include the NSEFI Green Data Centre Coalition’s work to decarbonize digital infrastructure, Women in Solar’s promotion of gender inclusivity, the India AgriVoltaics Alliance’s push for solar-agriculture integration, and digital security programs like GH Tap and the NSEFI Digital and Cyber Security Council, all contributing to a more resilient and inclusive energy future.

Baburajan Kizhakedath

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