India has ramped up its solar cell and module manufacturing capacity by 13.3 gigawatts (GW) in the first half of 2024, driven by increasing demand and an anticipated rise in the domestic project pipeline in the coming years.
According to data released by Mercom India, a total of 11.3 GW of photovoltaic (PV) module capacity and 2 GW of PV cell capacity were commissioned between January and June.
These additions have brought the country's cumulative installed capacity for solar module manufacturing to 77.2 GW, while the solar cell production capacity now stands at 7.6 GW.
As manufacturers work to enhance their capabilities, the 2024-2026 pipeline of solar projects has reached an impressive 132.7 GW. This surge in demand follows the government's reinstatement of certified hardware in the Approved List of Models and Manufacturers (ALMM) in April 2024.
As of the end of June, Gujarat accounted for 45% of India's solar module production capacity and 52% of its cell manufacturing capacity. However, despite the increasing capacity, the supply of locally manufactured modules remains constrained, primarily due to the slower growth in cell production capacity.
Raj Prabhu, CEO of Mercom Capital Group, noted that without a significant and rapid increase in cell capacity, many projects could face delays due to insufficient domestic hardware supply.
Mercom India projects that India's solar module manufacturing capacity could reach 172 GW by 2026, while the country's cell capacity is expected to exceed 80 GW within the same timeframe.
