India has very recently crossed the 100GW milestone in solar module manufacturing capacity. Year on year this is an incredible increase from just 2.3GW in 2014. This historic growth is a testament to our nation’s commitment to building a domestic solar manufacturing supply chain. Manufacturing’s importance is central to global decarbonization efforts. The big jump in capacity reflects India’s stated goal of achieving 500GW of non-fossil fuel energy by 2030. This objective seems to dovetail nicely with the country’s own Atmanirbhar Bharat, or self-reliant India, vision.
At the same time, India’s domestic solar manufacturing capacity has increased an astonishing twelve times in slightly over four years. Policy action by the government, including the production-linked incentive (PLI) scheme has largely bolstered this remarkable surge. This plan provides a level playing field for Indian manufacturers to compete. It further cements India’s rising role as a critical player in the global solar value chain.
The Growth of Solar Manufacturing Capacity
India’s solar module manufacturing capacity is experiencing an extraordinary boom, growing from 2.3GW in 2014 to well over 100GW at present. This increase is indicative of a booming domestic market. It’s an indispensable partner in our nation’s and the world’s efforts to slash carbon emissions.
India’s solar manufacturing industry has exploded. It managed to triple from a measly 21 manufacturers in 2021 to a staggering 100 currently operating in 123 jurisdictions today.
Competition and Innovation
Competition and innovation are directly linked to diversification within the industry. These two principles are key to reducing program costs and increasing overall efficiency.
“India has achieved a historic milestone -100GW solar PV module manufacturing capacity under the ALMM, a remarkable rise from just 2.3 GW in 2014! Driven by the visionary leadership of Prime Minister Shri Narendra Modi and transformative initiatives like the PLI scheme, we are building a robust, self-reliant solar manufacturing ecosystem.” – Government Official
Government Initiatives Fueling Growth
In addition to the PLI scheme, the Indian government has made a number of policy moves to speed up the growth of solar module manufacturing. The PLI scheme is perhaps the most significant of these measures, aimed squarely to promote domestic manufacturing of high-efficiency solar photovoltaic modules. The federal government’s latest push to boost domestic production includes direct financial support to U.S. manufacturers. The program seeks to foster competitive manufacturing and enable India to establish a leadership role in the emerging global solar industry.
Beyond helping to create a local EV supply chain, the initiative reflects India’s larger ambitions of improving energy security and cutting reliance on imported technology. The PLI scheme is a tremendous step in protecting and actively supporting incumbent, domestic manufacturers. It makes room for new entrants into the market, fostering innovation and creating economic growth in the process.
“This achievement strengthens our path towards Atmanirbhar Bharat [self-reliance] and the target of 500 GW non-fossil capacity by 2030.” – Government Official
Commitment to Sustainability
The growth of India’s solar module manufacturing capacity is a testament to the country’s dedication to sustainability and renewable energy. By investing in domestic manufacturing capabilities, India is aiming to be at the forefront of the global energy transition.
The Approved List of Models and Manufacturers (ALMM) for solar PV modules was central to this development. That way it guarantees quality standards and promotes local industries. With implementation, this framework will help protect manufacturers from unfair trade practices while increasing consumer confidence in the deployment of solar technology.