India’s solar cell and module imports witnessed a significant decline of 20% and 57% respectively in the first eight months of FY25 as the country strides towards self-reliance in solar manufacturing. According to analytics firm Rubix, India’s solar imports from China, which historically dominated over 90% of the market, saw a sharp reduction. China’s share in India’s total solar cell imports dropped to 56% in FY24, while its share in solar module imports reduced to 65% during the same period.

This decline can be attributed to the Production-Linked Incentive (PLI) scheme introduced by the Government of India, aimed at boosting domestic solar manufacturing capacity. Major domestic players such as TP Solar (Tata Power’s solar division), Reliance Industries, Waaree Energies, Vikram Solar, Gautam Solar, AdSolar, and Rene have significantly expanded their solar manufacturing capabilities, reducing India’s dependence on imports. The PLI scheme has created a favorable ecosystem for increasing local production capacity, contributing to the reduction of solar imports.

Shift Towards Export Market

Despite these achievements, India remains dependent on imports for photovoltaic (PV) cells and wafers, as domestic wafer production is yet to be established. However, Indian manufacturers are now shifting focus to international markets, with solar module exports in FY24 being nearly 35 times higher than solar cell exports. Leading domestic companies such as Waaree Energies, Adani Solar, and Vikram Solar have exported over 50% of their annual production in FY24. Other prominent firms, including Grew Energy, ReNew Power, Navitas, Solex Energy, and Saatvik Energy, are aggressively expanding their global presence by targeting international markets.

China’s Declining Share in India’s Solar Market

China’s once dominant position in India’s solar sector is gradually waning due to India’s strong push for local manufacturing and export-oriented growth. Over the past few years, China accounted for over 90% of India’s solar cell and module imports, but its share has dropped to 56% and 65% respectively. The trend indicates India’s commitment to reducing dependency on Chinese imports while enhancing the competitiveness of its domestic solar industry.

India’s COP26 Commitment and Renewable Energy Goals

India’s commitment at COP26 to achieve 500 gigawatts (GW) of non-fossil electricity capacity and attain net-zero emissions by 2070 aligns with the ongoing transformation in the solar manufacturing sector. The government’s continued emphasis on sustainable energy solutions has spurred private sector participation, leading to increased capacity expansion and innovation.

Expanding Domestic Solar Manufacturing Capacity

The PLI scheme has incentivized domestic solar manufacturing by providing financial support and boosting investor confidence. Companies such as Reliance Industries, Tata Power, Waaree Energies, and Vikram Solar are leveraging these incentives to increase their production capacity. TP Solar, a subsidiary of Tata Power, has been ramping up its manufacturing facilities to meet growing domestic and international demand.

Increasing Solar Module Exports

India’s shift towards exporting solar modules is positioning the country as a key player in the global renewable energy supply chain. Waaree Energies, Adani Solar, and Vikram Solar have emerged as major exporters, with over 50% of their production exported to countries worldwide. Smaller players such as Grew Energy, Navitas, and Saatvik Energy are also making a mark in international markets by expanding their footprint in the solar industry.

Road Ahead: Achieving Self-Reliance in Solar

While India’s solar manufacturing ecosystem has made commendable progress, the absence of domestic wafer production remains a critical challenge. Establishing local production of photovoltaic wafers will be essential to achieve complete self-reliance in the solar value chain. The government is expected to roll out policies that incentivize wafer manufacturing and attract investments in this crucial segment.

Future Outlook for India’s Solar Sector

India’s solar industry is on the path to becoming self-sufficient and globally competitive, with increased focus on domestic manufacturing and exports. As India moves towards its net-zero targets, continued investments in solar infrastructure, favorable policies, and increased global participation will play a pivotal role in shaping the future of the country’s renewable energy landscape.

India’s solar sector growth, supported by the PLI scheme and expanding manufacturing capacity, is not only reducing import dependence but also enabling the country to emerge as a leading exporter of solar modules. The journey towards self-reliance and global leadership in the solar energy sector is well underway, paving the way for a more sustainable and energy-secure future for India.

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