India added 25.3 gigawatt (GW) of solar module capacity and 11.6 GW of solar cell capacity in the year 2024, according to a latest report released by Mercom India. The manufacturing capacity additions were driven by the demand for the solar project pipeline and the reimposition of the Approved List of Models and Manufacturers (ALMM) from April 2024, Mercom said.
According to the report, approximately 64.6 GW of the total module production capacity was listed under the ALMM order.
Among states, Gujarat emerged as the most preferred location for the installation of photovoltaic (PV) manufacturing facilities, with 42% of the country’s module capacity located in the state. As of December 2024, the state accounts for over 37% of the country’s annual solar cell production capacity, the highest in the country.
Tamil Nadu and Rajasthan were the other top states accounting for 10% and 8% of the country’s solar module manufacturing capacity, respectively. Karnataka and Tamil Nadu accounted for 18% and 12% of the country’s total solar cell production units, respectively, after Gujarat.
During the last calendar year, various public sector and government entities issued tenders totalling 9.9 GW to procure solar modules in 2024, registering an increase of 6% from the previous year. In 2024, 1.7 GW of module and 11.3 MW of solar cell supply auctions were concluded.
The country imported 65.9 GW of solar modules and cells last year. While modules accounted for 36% of the imports, cells made up for the remaining 64%. Domestic manufacturers exported 4.5 GW of solar modules in 2024, down 6% from 4.8 GW exported in 2023.
Experts now believe that the prohibitive tariffs imposed by the US on solar imports from Cambodia, Vietnam, Malaysia and Thailand may open new opportunities for Indian solar manufacturers to expand their business. However, with Indian domestic manufacturing capacity just about to become sufficient to cater to the domestic market, there could be a shortfall in meeting the domestic demand if companies decide to cater to the US markets in hopes of higher margins, experts cautioned.
The US has emerged as a key market for Indian solar PV products, accounting for 97% of its overseas shipments in both FY23 and FY24. With the latest sanction of duties, Indian companies are expected to tap into the opportunity and further expand their business to the US.
Analysts, however, note that it is important for the country to balance the needs of a growing export market with domestic availability, given the government’s focus on increasing the share of renewable energy to 500 GW by 2030 and schemes like PM Suryaghar that mandate the use of domestic modules.