India’s solar module manufacturing capacity has exceeded 200 GW as of June 2026, with ALMM-approved capacity surpassing 190 GW and domestic cell capacity crossing 30 GW. This growth stems from the Production Linked Incentive Scheme, Basic Customs Duty, and the Approved List of Models and Manufacturers. Yet China still dominates — controlling over 95% of global wafer production and more than 80% of total solar manufacturing capacity. Building a fully integrated alternative requires mastering upstream segments like polysilicon and wafers, supported by patient capital, technology partnerships, and infrastructure upgrades.
According to www.pv-magazine.com, India’s annual solar module manufacturing capacity has surpassed 200 GW as of June 2026 — a milestone driven by policy interventions and rapid industrial scaling aimed at building a vertically integrated, China-alternative photovoltaic supply chain.
Solar manufacturing as strategic infrastructure
Solar manufacturing has evolved from an industrial sector into a core component of national security and economic sovereignty. As noted by Tanmoy Duari, CEO of AXITEC Energy India, “Success will require sustained policy support, patient capital, technology partnerships, infrastructure development, and a long-term industrial vision.” The global clean energy transition is no longer measured solely in gigawatts installed but in the geopolitical control over critical manufacturing nodes — from polysilicon refining to finished modules.
Over the past five years, disruptions including the COVID-19 pandemic, US-China strategic rivalry, maritime logistics bottlenecks, and export controls have underscored the risks of overconcentration. Today, energy security encompasses not just fuel access but assured supply of clean energy technologies. Governments across the US, Europe, Japan, and India now treat domestic solar manufacturing as a strategic capability — deploying industrial incentives, local-content mandates, and targeted procurement frameworks.
China’s entrenched dominance
China’s leadership in solar manufacturing was built systematically over two decades. By June 2026, it accounted for more than 80% of global solar manufacturing capacity and controlled over 95% of worldwide wafer production. Its vertical integration spans polysilicon refining, ingot casting, wafer slicing, cell fabrication, module assembly, and ancillary materials including glass, backsheets, and EVA films.
This ecosystem delivers unparalleled economies of scale and rapid response to technological shifts such as TOPCon and Heterojunction (HJT) cells. Chinese producers also dominate polysilicon — the foundational raw material — dictating global pricing and supply rhythms. Replicating this depth is far more complex than establishing standalone module lines, requiring coordinated investment across upstream, midstream, and downstream segments.
India’s accelerated manufacturing expansion
India’s solar manufacturing landscape has transformed since 2020. Five years ago, domestic capacity was limited almost entirely to module assembly, with near-total reliance on imported cells and wafers. Now, under the Production Linked Incentive (PLI) Scheme, Basic Customs Duty (BCD), and the Approved List of Models and Manufacturers (ALMM), the country has scaled rapidly. As of June 2026, ALMM-approved manufacturing capacity exceeds 190 GW, while domestic solar cell manufacturing capacity has crossed 30 GW.
Several fully integrated facilities — spanning polysilicon-to-module production — are under construction. This expansion aligns with India’s status as one of the world’s fastest-growing renewable energy markets, where utility-scale auctions and state-level procurement programs generate consistent demand. However, the next phase demands mastery of upstream segments — particularly polysilicon, ingots, and wafers — currently the most formidable barrier to true supply chain autonomy.
Pathways to full integration
Achieving end-to-end solar manufacturing requires four interlocking enablers: sustained policy continuity beyond electoral cycles; patient capital with 10–15-year horizons to absorb early-stage risk; technology transfer partnerships with established non-Chinese suppliers; and parallel upgrades to power, water, and transport infrastructure in designated industrial zones.
Unlike semiconductor manufacturing — which benefits from concentrated R&D ecosystems and mature IP frameworks — solar manufacturing relies heavily on process engineering, equipment standardization, and workforce upskilling. India’s advantage lies in its growing pool of chemical engineers, metallurgists, and automation technicians, alongside expanding vocational training programs focused on PV manufacturing. Still, gaps remain in high-purity polysilicon purification and large-diameter wafer slicing — capabilities where only a handful of non-Chinese firms operate at commercial scale.
The challenge is not merely technical but systemic: building supplier networks for specialty gases, quartz crucibles, and precision metrology tools — all currently dominated by Chinese or East Asian vendors. Success hinges on coordinated action across ministries, state governments, and private investors — not isolated factory launches.
Source: pv-magazine.com
Compiled from international media by the SCI.AI editorial team.
