1 hr ago
India’s Solar Manufacturing Race Targets 90% Localisation by 2030
India wants to make more of its solar equipment inside the country.
New rules first required certain projects to use approved Indian-made modules.
Later rules required those modules to use Indian-made solar cells.
A planned 2028 rule will also require Indian-made wafers and ingots.
Building all these factories is expensive, costing about $140 million for each gigawatt of integrated capacity.
This may help large companies with strong finances more than smaller companies.
Solar cells are currently in short supply, which is helping cell manufacturers earn stronger margins.
Solar power combined with batteries is also becoming cheaper than some thermal power.
Jefferies expects India to localise about 90% of its solar manufacturing value chain by 2030, although polysilicon is excluded.
India’s solar module capacity has reached 156 gigawatts, while cell capacity stands at 35 gigawatts.
Jefferies estimates that building 1 gigawatt of integrated ingot-to-cell capacity costs about $140 million.
ALMM, DCR and ALWM mandates are progressively requiring domestic modules, cells, wafers and ingots.
India’s cell capacity could reach about 130 gigawatts by 2027, with another 100 gigawatts currently under construction.
Jefferies expects solar-plus-storage tariffs to remain below marginal thermal power costs, supporting annual solar installations of 74 gigawatts by 2030.
- Who
- The Indian government, domestic solar manufacturers and companies assessed in a Jefferies report.
- What
- India is expanding and localising its solar manufacturing chain from modules toward cells, wafers and ingots.
- Where
- India’s solar manufacturing industry.
- When
- The policy sequence began in April 2024, with further requirements in June 2026 and June 2028; the report’s target is 2030.
- Why
- The mandates are intended to reduce reliance on imported components, encourage backward integration and support domestic solar supply as demand grows.
Key facts
- Integrated capacity cost
- About $140 million for 1 gigawatt from ingot to cell
- India module capacity
- 156 gigawatts
- India cell capacity
- 35 gigawatts
- Projected cell capacity
- About 130 gigawatts by the end of calendar year 2027
- Expected localisation
- Close to 90% of the solar manufacturing value chain by 2030
- Solar-plus-storage tariff
- Rs 4.5–5 per unit, compared with Rs 5.8–6.3 per unit for marginal thermal power
- Polysilicon status
- No near-term government mandate for ALMM eligibility
Sources
Related news
India on Track for Record 50 GW Solar Capacity
India Faces Decade-Long Path to Battery Self-Sufficiency
India’s Solar Cell Imports Surge, Challenging Domestic Manufacturing
SMIFS Sees Upside in India’s Leading Solar Stocks
India Plans New Scheme to Boost Domestic Polysilicon Manufacturing
India's Solar Cell Capacity Set to Reach 100 GW
EV Transition in BRICS+ Remains Reliant on Subsidy Support
Ahead of BRICS, Xi-Modi Meeting Signals Cautious India-China Thaw
Trump’s Policies Are Strengthening BRICS as India Seeks Consensus
India Outflows Ease as Taiwan, South Korea Redemptions Rise
