India’s Solar Sector: Potential Short-Lived Cell Shortage as Capacity Expected to Triple
India’s domestic solar cell supply is set to improve as manufacturers ramp up production to comply with local-content regulations. Currently, the country has approximately 32 GW of solar cell manufacturing capacity, which is projected to increase to around 100 GW by December 2027. This comes in the wake of the government’s introduction of the Approved List of Models and Manufacturers for solar cells, known as ALMM List-II, which is particularly relevant for rooftop and other projects requiring locally produced cells.
Cell production to rise sharply
Vineet Mittal, chairman of Avaada Group, stated that the supply-demand gap in solar cells will be temporary as more production capacity becomes available. He noted that India’s current 32 GW of domestic solar cell capacity is expected to grow with new facilities being commissioned throughout the year. Mittal emphasized that the mismatch between supply and demand is a transitional phase as the market adjusts to local content requirements. He also pointed out that comparing India’s extensive module capacity to its cell capacity could be misleading, as many projects do not require locally made cells.
Avaada plans to increase its cell-making capacity to 6 GW, focusing on supplying half-cut cells to domestic module manufacturers. Mittal criticized the reliance on low-efficiency assembly lines, arguing that such practices do not contribute to true self-reliance in solar manufacturing. He warned that continued dependence on foreign sources for key components could expose the industry to external pricing pressures and hinder technology adoption.
Companies invest in more cell plants
Gyanesh Chaudhary, chairman and managing director of Vikram Solar, remarked that ALMM List-II has shifted the industry’s focus from merely assembling modules to producing more components domestically. He highlighted that backward integration is essential for long-term energy security. Vikram Solar is on track to establish 9 GW of domestic solar cell capacity by the end of FY27. The ALMM-listed module manufacturing capacity in India has surpassed 217 GW.
Ravi Verma, a member of the Sustainable Projects Developers Association governing council, noted that India has previously faced similar challenges when promoting local module manufacturing. He stated that manufacturing capacity tends to adapt to demand certainty, and that a clear framework for local cell production could encourage investment in this area.
Module-cell capacity gap not the full picture
Analyst Avinash Gorakshakar cautioned against evaluating the current situation solely by comparing module and cell manufacturing capacities. He explained that not all module factories operate at full capacity, and many solar projects do not fall under the domestic-content or ALMM cell requirements. ICRA has estimated that India’s solar cell manufacturing capacity could reach around 100 GW by December 2027, driven by investments following ALMM List-II. The agency also projects that India’s module manufacturing capacity will exceed 165 GW by March 2027, but warned that excess capacity could lead to consolidation among smaller manufacturers.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
