In calendar year (CY) 2023, the country added 20.8 gigawatts (GW) of solar modules and 3.2 GW of solar cell capacity, according to the recently released report.
It added that solar module manufacturing capacity is projected to surpass 150 GW, and cell capacity is expected to reach over 75 GW by 2026. India’s solar module manufacturing capacity reached 64.5 GW, while solar cell manufacturing capacity totaled 5.8 GW as of December 2023.
Manufacturing capacity additions in 2023 were primarily driven by the anticipated reimposition of the Approved List of Models and Manufacturers (ALMM) order starting in April 2024, as well as potential export opportunities, said the report by Mercom India research titled ‘State of Solar PV Manufacturing in India 2024’.
“The top 10 manufacturers accounted for 62 per cent of the module and 100 per cent of cell production capacity as of December 2023,” it said.
Only 22.2 GW of the total module production capacity was enlisted under the ALMM order per the updated List–I issued by MNRE as of January 2024.
“Cheaper Chinese products will continue to challenge the competitiveness of locally-produced modules. A policy change in the US, post-elections, could potentially shrink export opportunities, and demand for solar energy in India needs to ramp up significantly to consume the projected increase in module production in the coming three years,” said Raj Prabhu, CEO, Mercom Capital Group.
Gujarat led the country’s photovoltaic manufacturing capacity, accounting for 46.1 per cent of solar modules. Telangana accounted for 39 per cent of annual solar cell production capacity, the highest in the country as of December 2023, said the report.
Rajasthan and Tamil Nadu ranked second and third for solar module production capacities, accounting for 9.3 per cent and 7.6 per cent. Gujarat and Himachal Pradesh were second and third, with solar cell production contributing 34.7 per cent and 13.9 per cent of total capacities in the country.
Various public sector and government entities issued tenders totaling 9.7 GW to procure solar modules in 2023, up 275.6 per cent YoY.
India imported 16.2 GW of modules, the highest in a year, up 158 per cent year-on-year (YoY) from 10.3 GW in 2022. Domestic manufacturers exported 4.8 GW of solar modules in 2023, up 204 per cent compared to 1.6 GW in 2022.
The country imported 15.6 GW of solar cells in CY23, up 169 per cent YoY from 5.8 GW. India’s solar cell exports reached 286.3 MW in 2023, up 2,765 per cent from 10 MW in 2022.
