India Boosts Solar Capacity: 20.8 GW Modules and 3.2 GW Cells Added in 2023: Report

In a significant advancement for India’s solar energy sector, the country installed an impressive 20.8 GW of solar module manufacturing capacity and an additional 3.2 GW of solar cell manufacturing capacity throughout 2023. This development has elevated India’s total solar module manufacturing capacity to 64.5 GW and solar cell manufacturing capacity to 5.8 GW as of December 2023, according to a report by research firm Mercom Capital. Titled “State of Solar PV Manufacturing,” the report provides an in-depth look at the current state and future prospects of India’s solar manufacturing industry.

Highlighting the technological advancements in the sector, the report notes that approximately 60% of the newly installed module manufacturing capacity is designed to produce solar modules using M10 and G12 wafer sizes. When it comes to the types of solar modules produced, monocrystalline modules lead the way, making up 67.5% of India’s module production capacity. They are followed by polycrystalline, tunnel oxide passivated contact (TOPCon), and thin film modules.

Looking ahead, Mercom Capital projects that India’s module manufacturing capacity could exceed 150 GW, with cell manufacturing capacity likely to surpass 75 GW by 2026. However, the report also underscores challenges facing the industry, including the need to compete with lower-priced Chinese products and the potential impact of geopolitical tensions and trade disputes on market dynamics. Raj Prabhu, CEO of Mercom Capital Group, emphasized the importance of Indian manufacturers navigating these complexities while also highlighting the need for increased domestic demand for solar energy to match the projected growth in production capacities.

Geographically, Gujarat is at the forefront of India’s photovoltaic (PV) manufacturing, accounting for 46.1% of the country’s solar modules. Meanwhile, Telangana leads in annual solar cell production capacity, contributing 39% to the national total. Other significant contributors to module and cell production include Rajasthan, Tamil Nadu, Himachal Pradesh, and Gujarat.

The report further reveals that tendering activity for solar modules by public sector entities and the government reached 9.7 GW in 2023. In terms of trade, India imported 16.2 GW of solar modules and 15.6 GW of solar cells in 2023, marking a substantial increase from the previous year. On the export front, domestic manufacturers shipped 4.8 GW of solar modules and 286.3 MW of solar cells in 2023, indicating a strong upward trend in India’s solar exports.