New Delhi: The Indian government has announced that starting June 2026, clean energy firms will be required to use only locally manufactured solar cells from approved domestic suppliers for government projects. This move aims to reduce reliance on Chinese imports and boost India’s domestic solar manufacturing sector.
Solar cells, the building blocks of photovoltaic (PV) modules, convert sunlight into electricity using semiconductor materials like silicon. These cells are assembled into modules, which are then used in solar power systems. While India has made significant strides in PV module production with a capacity of about 80 gigawatts (GW), its solar cell manufacturing capacity is currently just over 7 GW, necessitating a reliance on imports.
To address this gap, the Ministry of New and Renewable Energy expects substantial growth in India’s solar PV cell production next year. Key players, including Tata Power, Reliance Industries, and the Adani Group, are already expanding their manufacturing capabilities. Tata Power has recently commissioned a 4.3 GW cell production plant in Tamil Nadu, while Reliance is on track to launch a 20 GW integrated solar cell and module facility in Gujarat. Companies like Waaree Energies, Vikram Solar, and Solex Energy are also working on solar cell manufacturing pipelines.
India aims to raise its non-fossil fuel capacity to 500 GW by 2030, up from 156 GW today. However, analysts warn that domestically produced solar cells might initially cost more than imported ones, highlighting the importance of scaling up production and improving cost efficiency in the Indian market.
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