India’s solar module manufacturing capacity is expected to reach approximately 95 GW by the end of 2025, according to Mercom Capital.
According to the report, “State of Solar PV Manufacturing In India”: India’s capacity for solar module manufacturing was announced at 39 GW at September 2022. It is expected that it will reach 95 GW by the end the calendar year (CY 2025).
According to the report, Indian photovoltaic (PV) manufacturers are strategically poised for growth and adoption of new technologies over the next few years thanks to government incentives programmes.
It said that states are encouraging domestic solar manufacturing by offering fiscal and non-fiscal incentives as part of their industrial, electronics and solar policies.
The Cabinet approved in September 2022 a Rs 19,500 crore production linked incentive (PLI), scheme for ‘national programme on high efficiency solar PV module’. This was to attract investments of Rs 94,000 crore.
“The PLI program is an additional push to improve vertical integration of new capacities additions and technology. India will need significant manufacturing capacity increase, with an estimated 220GW of solar capacity needed by the end the decade,” Priyadarshini Sanjay, Mercom India’s Managing Director, stated.