In 2024, India witnessed an annual increase of 11.6 gigawatts (GW) in solar cell manufacturing capacity and 25.3 GW in solar module production capacity, according to a report by Mercom India.
The growth in manufacturing capacity was fueled by a record-breaking domestic solar project pipeline, with 25 GW of new solar projects added annually, and the reimplementation of the Approved List of Models and Manufacturers (ALMM) directive in April, as per Mercom’s findings. As of early 2025, the ALMM list featured solar modules with an annual production capacity of approximately 64.6 GW.
The latest data from India’s Ministry of New and Renewable Energy (MNRE) revealed that, as of March 2025, the country’s annual solar module production capacity reached 74 GW, while solar cell capacity nearly tripled within 12 months, rising from 9 GW to 25 GW.
Raj Prabhu, CEO of Mercom Capital Group, noted that local supply of solar cells and modules in India lagged behind, with high average selling prices and procurement difficulties. Additionally, new U.S. tariff policies added uncertainty, making export-driven growth strategies riskier for manufacturers. India must address these bottlenecks, he emphasized.
Despite rapid capacity expansion, actual production of solar cells and modules in India remained concentrated among the top 10 manufacturers, accounting for 100% and 54% of total output, respectively. Priyadarshini Sanjay, Managing Director of Mercom India, attributed the growth in manufacturing capacity primarily to the first two batches of the ALMM list.
Looking ahead, solar cell manufacturing capacity is expected to grow further. Last month, Waaree Energies, an Indian solar manufacturer, commissioned a 5.4 GW solar cell plant in Gujarat, representing nearly half of the new cell capacity added in 2024. The facility includes 1.4 GW of monocrystalline PERC technology and 4 GW of TOPCon cells.
Since the MNRE’s September 2024 decision to include solar cells in the ALMM list starting June 2026, India has seen a flurry of capacity expansion announcements over the past 12 months. Companies such as Solex Energy, Tata Power, Vikram Solar, Goldi Solar, Avaada, Rayzon Solar, and Jupiter International have unveiled plans to expand solar cell and module production in the coming months or years.
Among installed modules, monocrystalline modules accounted for 59% (with or without PERC technology), followed by TOPCon modules at 28%, and polycrystalline and thin-film modules at lower shares. In solar cells, monocrystalline technology dominated with 68%, while TOPCon cells exceeded 26%.
Mercom forecasts that TOPCon will become the dominant technology by 2027, representing 57% of annual module production capacity and over 64% of solar cell capacity. Monocrystalline and HJT technologies will follow. Nearly 80% of operational module capacity utilizes M10 and G12 wafer sizes.
Gujarat, in western India, emerged as the leading solar manufacturing hub, accounting for 42% of the country’s module capacity and 37% of cell capacity. Tamil Nadu and Rajasthan ranked second and third in module capacity, with 10% and 8% shares, respectively. In solar cells, Tamil Nadu held 12% of the capacity, while Karnataka, with 18%, ranked second.
Despite adding 11.6 GW of annual solar cell capacity in 2024, India remained heavily reliant on imports, with 65.9 GW of cells and modules imported (64% cells, 34% modules). Additionally, module exports fell 6% from 4.8 GW to 4.5 GW in 2023-2024.
