According to a recent report by Mercom India Research, India added 11.3 GW of solar module capacity and 2 GW of solar cell manufacturing capacity in the first half of 2024, ending in June.
The report titled State of Solar PV Manufacturing in India 1H 2024 noted that the increase in manufacturing capacity during the first half of 2024 was primarily fueled by strong demand, alongside solar project pipelines totaling 132.7 GW from 2024 to 2026 and the reimposition of the Approved List of Models and Manufacturers (ALMM) order effective April 2024.
As of June 2024, India’s cumulative solar module manufacturing capacity reached 77.2 GW, while solar cell manufacturing capacity stood at 7.6 GW. By the end of June 2024, approximately 51 GW of module capacity across various technologies and wattages had obtained ALMM certification.
As of June 2024, the top 10 manufacturers represented nearly 58% of module production capacity and 100% of cell production capacity.
Over 57% of the installed module manufacturing capacity was equipped to manufacture solar modules of M10 and G12 wafer sizes.
The Mercom report projects that India’s solar module manufacturing capacity will reach 172 GW, with cell capacity nearing 80 GW by 2026.
“Despite substantial capacity additions, the supply of domestically made modules remains tight, largely because cell production capacity has not kept pace. Without a significant and rapid increase in cell capacity, many projects will face delays due to domestic content supply shortages. Average module prices are expected to remain high until the supply-demand balance improves, especially given the limited availability of imports. With trade restrictions continuing to tighten as countries develop their own local manufacturing supply chains, relying on exports as a long-term growth strategy for manufacturers remains very risky,” said Raj Prabhu, CEO of Mercom Capital Group.
Gujarat emerged as the preferred state for solar photovoltaic (PV) component manufacturers, housing approximately 45% of the country’s solar modules and 52% of solar cell capacity as of June 2024.
Domestic manufacturers exported over 3 GW of solar modules in the first half of 2024, representing a year-over-year increase of more than 16%. In the same period, India’s solar cell exports rose to 148.6 MW, compared to 50.4 MW in the first half of 2023.
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Resource: PV Magazine
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