From June 2026, all clean energy projects in India must use solar modules made with locally-produced cells.
India’s renewable energy sector is undergoing a transformative shift. By June 2026, all clean energy projects across the nation must exclusively use solar photovoltaic (PV) modules made from locally-produced cells. This decisive mandate from the renewable energy ministry is set to strengthen India’s domestic manufacturing ecosystem while reducing its heavy reliance on Chinese imports.
Currently, China supplies components for 70% of India’s solar capacity. The new policy aims to reverse this dependency and foster a robust, self-sustaining solar industry in India, reinforcing its ambition to lead the global clean energy race.
RELEVANT SUSTAINABLE GOALS
A Bold Directive for a Self-Reliant Solar Future
India’s solar energy sector has long been reliant on imports, particularly from China, due to a lack of domestic production capacity. While the nation boasts an impressive module manufacturing capacity of 80 gigawatts (GW), its solar cell manufacturing capability lags at just over 7 GW. This gap has made it vulnerable to external market pressures and supply chain disruptions.
“This condition will have to be followed irrespective of the date of commissioning,” the ministry stated, emphasizing the seriousness of the policy. The directive will apply across the board, ensuring a uniform push towards indigenization.
The ministry has also announced plans to soon release a list of approved domestic cell manufacturers, signaling the beginning of a new era in India’s clean energy landscape.
Scaling Up Domestic Production
The policy comes at a time when India’s solar cell production is poised for rapid growth. By 2025, manufacturing capacity is expected to soar to 95 GW, a leap driven by investments from major energy players:
- Tata Power: Recently commissioned a 4.3 GW solar cell plant in southern India.
- Reliance Industries: Preparing to launch the first phase of its ambitious 20 GW integrated solar cell and module facility in Gujarat by year-end.
- Adani Group: Operates a 4 GW plant in Gujarat, contributing to the sector’s momentum.
India added 13.3 GW of solar equipment manufacturing capacity in just the first half of 2024, underscoring the rapid strides being made to meet the new mandate.
Aligning with Ambitious Renewable Energy Goals
India’s directive aligns seamlessly with its broader renewable energy targets. The nation aims to expand its non-fossil fuel capacity from the current 156 GW to an ambitious 500 GW by 2030. By prioritizing local manufacturing, the government is not only addressing energy security but also accelerating its transition to a sustainable energy future.
“India’s solar equipment manufacturing space has made rapid strides,” a Mercom India report noted, highlighting the industry’s growing potential. The report projects that India’s solar panel production capacity will reach unprecedented levels in the coming years, helping the country achieve its clean energy goals.
By fostering local innovation and reducing import dependency, India is positioning itself as a global leader in clean energy manufacturing. This policy represents not just a step forward for India’s renewable energy ambitions but a paradigm shift that could reshape the industry worldwide.
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