India’s solar photovoltaic (PV) sector is witnessing rapid growth, with installed capacity reaching approximately 172 GW as the country moves towards its 200 GW target by the end of the financial year 2026–27. According to data from the Ministry of New and Renewable Energy (MNRE), India had installed 171.05 GW of solar capacity by September 2026. The country added 20.79 GW during the first half of FY 2026–27, reflecting strong growth in renewable energy deployment. However, the next phase of development will require greater focus on domestic manufacturing, technological innovation, energy storage and grid infrastructure.
Ground-mounted solar projects continue to dominate India’s installed capacity, contributing 125,650.69 MW. Rooftop solar installations have reached 33,409.04 MW, supported by government initiatives such as the PM-Surya Ghar Muft Bijli Yojana. Hybrid solar systems account for 5,362.47 MW, while off-grid installations are expanding through programmes such as PM-KUSUM. Rajasthan remains the leading state in solar capacity, followed by Gujarat, Maharashtra, Karnataka and Tamil Nadu. Uttar Pradesh is also increasing its contribution through utility-scale and rooftop solar projects, supporting wider renewable energy adoption.
Despite this progress, industry stakeholders believe that achieving 200 GW will be only an intermediate milestone. India’s solar manufacturing sector needs to move beyond module assembly towards an integrated domestic supply chain. By mid-2026, domestic solar module manufacturing capacity had reached approximately 233 GW, with more than 200 GW included in the Approved List of Models and Manufacturers (ALMM). However, domestic solar cell capacity remains below 40 GW, while ingot and wafer manufacturing accounts for less than one percent of the overall manufacturing capacity. Commercial-scale polysilicon production is yet to begin.
This imbalance increases dependence on imported raw materials and exposes manufacturers to international price fluctuations and supply chain disruptions. The situation is further highlighted by module factory utilization rates of around 35–40 percent, indicating that installed manufacturing capacity is significantly higher than actual production. Government policies are expected to encourage investment in upstream manufacturing. ALMM List-II introduces domestic solar cell requirements, while ALMM List-III will extend domestic sourcing requirements to wafers and ingots from June 2028.
Manufacturing companies are responding by investing in integrated facilities. Cell manufacturing involves considerably higher investment than module assembly, while wafer and polysilicon production require even greater financial resources. Access to long-term financing and stronger institutional support will therefore be important for developing a competitive domestic manufacturing ecosystem.
Another major requirement is integrating energy storage with solar generation. As renewable energy penetration increases, electricity generated during daytime hours may not always match demand. Battery energy storage systems (BESS) and pumped hydro projects can help address this challenge by storing surplus electricity and supplying it during evening peak hours. Consequently, firm and dispatchable renewable energy (FDRE) and round-the-clock (RTC) projects are expected to gain importance.
Grid infrastructure and solar waste management also require greater attention. Transmission lines, substations and evacuation facilities must expand alongside new generation capacity to prevent delays and stranded projects. Meanwhile, India’s solar waste volume is projected to reach approximately 600 kilotonnes by 2030. Establishing recycling facilities and material recovery systems will be essential for managing ageing solar panels and supporting a circular economy.
India’s solar expansion also creates opportunities in international markets as global buyers seek diversified clean energy supply chains. However, exporters must demonstrate competitive pricing, product durability and supply chain transparency to strengthen their position in international markets.
Ivan Saha, Managing Director, JAKSON Engineers
“India’s solar sector is entering a defining phase. With cumulative installed capacity reaching 171.05 GW as of 30 September 2026, including 20.79 GW added in the first half of FY 2026–27, the country has demonstrated strong growth momentum. However, the next phase must be defined not just by capacity additions, but by technological innovation, deeper domestic value addition and global manufacturing competitiveness. JAKSON is advancing plans for 3 GW of solar cell manufacturing and 3 GW of ingot and wafer manufacturing capacity. India has the potential to establish itself as a globally competitive hub for solar manufacturing and exports.”
Sameer Nagpal, CEO, Vikram Solar Limited
“India’s solar manufacturing growth has so far been mostly a module assembly story. Module capacity has crossed 230 GW, but cell capacity is roughly a seventh of that, ingot-wafer capacity is less than one percent of it, and polysilicon is not yet made at commercial scale. With ALMM List-II now in force, domestic cells are a requirement, not an option. ALMM List-III takes the same requirement to ingots and wafers from June 2028. At Vikram Solar, we have broken ground on 9 GW of ingot and wafer capacity at Gangaikondan, Tamil Nadu, with production planned to align with ALMM List-III.”
Dilip Mehta, Director – Technical Services, Hexa Climate
“India will cross 200 GW of solar soon. That deserves credit. But let us peel the onion. We have over 200 GW of module capacity on the ALMM list. Enlisted cell capacity is under 40 GW. Wafers and ingots are still almost entirely imported. Three things will decide the next phase: upstream manufacturing, storage, and transmission. Solar has to be planned with storage from day one, not added later. Grid build-out has to keep pace with generation. Global buyers want supply chains that do not run through one country. 200 GW is a milestone. It is not the destination.”
Ankit Patidar, Director & Chief Marketing Officer – Shakti Group, Managing Director – Shakti Irrigation Pvt. Ltd.
“India’s remarkable solar transformation stands as a testament to the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi and the Government of India’s unwavering commitment to building an energy-secure, self-reliant and sustainable nation. Through transformative initiatives such as Make in India, Atmanirbhar Bharat, the Production Linked Incentive (PLI) Scheme, PM-KUSUM and PM Surya Ghar: Muft Bijli Yojana, the Government has created an enabling ecosystem for domestic manufacturing, technological advancement, entrepreneurship and widespread solar adoption. At Shakti Pumps, we are proud to contribute to this national mission through indigenous solar pumping technologies, energy-efficient motors and intelligent pumping solutions.”
Ravi Dutt, Director & CTO, Smarten Power Systems
“India has the opportunity to move beyond installing solar capacity and build the technology and manufacturing capabilities that support it. We need stronger domestic capabilities in power electronics, energy storage, inverters, control systems and product engineering. These areas determine how efficiently solar power is converted, stored, and used. Manufacturing at scale also requires reliable component supply, consistent product quality and sustained investment in research. Indian companies must develop products that withstand local operating conditions while meeting international standards. The next phase of growth will depend on how much technology we can develop, refine and manufacture competitively in India, rather than assemble.”
Sandesh Naik, CFO, AB Energia
“As India moves towards the 200 GW solar milestone, the focus must shift from capacity addition to building a robust, efficient and technologically advanced solar ecosystem. From an EPC perspective, the next phase of growth will depend on execution excellence, innovative engineering, cost optimization and the adoption of next-generation technologies. Solutions such as floating solar, advanced energy storage and integrated project designs will play an increasingly important role in maximizing renewable energy generation. Strengthening domestic manufacturing, improving component quality and investing in R&D will be critical to enhancing project performance and positioning India as a globally competitive solar manufacturing and deployment hub.”
Kartik Teltia, Managing Director, Solarworld Energy Solutions Ltd.
“India’s solar PV industry is at an important inflection point. The next phase of growth will depend on building manufacturing capabilities that are competitive, technologically advanced and sustainable over the long term. According to industry estimates, India’s solar module manufacturing capacity reached 233 GW by June 2026, while factory utilisation stood at just 35–40%. This highlights the need for efficient production, stronger domestic cell and wafer capabilities, and international competitiveness. Long-term growth will require sustained investment in research, advanced cell technology, energy storage integration and raw material security. Recycling and material recovery must also become part of industry planning.”
Kunal Saxena, Senior Director – Strategic Initiatives and Investments, AMPIN Energy Transition
“Given the rising energy demand, significant solar energy potential, and increasing geopolitical uncertainties, achieving technological self-reliance and establishing a resilient domestic supply chain across the solar manufacturing ecosystem has become imperative.
The next phase of development must prioritise upstream technologies that form the technological foundation of solar modules, alongside the industrial machinery, equipment, and associated process technologies essential for manufacturing these products.”
Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd.
“Crossing the 200 GW milestone will be an important achievement for India’s solar PV industry, but the next phase of growth will depend on how effectively we translate scale into technological leadership and long-term competitiveness. As domestic manufacturing expands, the focus must shift towards advanced cell technologies, higher module efficiencies, reliable supply chains and greater investment in research and development. Equally important will be strengthening access to critical raw materials, developing recycling capabilities and integrating solar power with energy storage to address intermittency and improve grid reliability. India has the potential to emerge as a significant global hub for solar manufacturing and exports.”
Udit Garg, Managing Director, Kundan Green Energy
Crossing the 200 GW barrier will definitely represent a very important stage for India’s solar energy story, but the next stage should involve creating a robust, competitive and self-reliant solar ecosystem. While the country’s manufacturing capacities are growing, more attention should be paid to technological progress, operational efficiency, and access to necessary raw materials. The integration of energy storage will also become very important in solving problems related to the intermittent nature of renewable energy and ensuring uninterrupted power supply. In the future, the focus should be made on investments in research and development, advanced solar technologies, recycling and efficient supply chain management. India can become not only a leading consumer of solar energy, but also a leading manufacturer and innovator in the field.”
The next phase of India’s solar development will depend on balancing capacity additions with manufacturing strength, infrastructure readiness and technological advancement. Greater domestic production of cells, wafers and ingots, combined with storage integration and recycling capabilities, will reduce import dependence. Moving towards an integrated and competitive solar ecosystem will be essential for India to achieve long-term energy security and strengthen its position in the global renewable energy market.
