In a major policy move, the Indian government has declared that from June 2026, all clean energy firms in the country will have to use solar photovoltaic (PV) modules comprising cells produced locally. The step aims to curb heavy dependence on Chinese imports since India currently depends largely on Chinese cells for its PV modules. The government wants to build up domestic manufacturing capabilities to ensure energy security and foster local industry growth.

Current and future capacity

India currently has a massive solar PV module-making capacity of about 80 GW. Its cell-making capacity, however, is significantly low at just over 7 GW. The government believes that this new rule will substantially increase the manufacturing capacity of solar PV cells in the next year. To ease this process, the renewable energy ministry will publish an approved list of cell manufacturers in the government. The list will further help companies source local solar cells, hence enhancing independence in the renewable energy sector.

Ambitious energy goals

India's overall goal of boosting its non-fossil fuel capacity to 500 GW by 2030, which is still at 156 GW. Various Indian companies are already establishing solar cell manufacturing facilities, expecting this much-needed regulatory change.

The strategy is to reduce India's import dependency and further boost innovation and job generation in the country. This strategy is expected to transform the Indian solar industry, making it more sustainable and resilient in its economy.