Gujarat Accounts for 53% of India’s Solar Module Manufacturing Capacity


  • Mercom India’s report reveals Gujarat is dominating India’s module manufacturing industry.
  • The state is poised to add 25 GW of solar module production capacity by 2025.
  • Favourable investor policies and low electricity tariffs were cited as the top reasons.

According to the latest report by Mercom India, solar companies are increasingly turning towards Gujarat to set up their manufacturing facilities. The state currently accounts for 53% of the nation’s total solar module manufacturing capacity and nearly 30% of solar cell manufacturing capacity.

Moreover, 10.1 GW of this capacity is enlisted under the Approved List of Models and Manufacturers (ALMM). For perspective, almost half of the country’s module manufacturing capacity enlisted under ALMM is from Gujarat.

The report titled, ‘State of Solar Manufacturing in India’, reveals that as of September 2022, India could produce 39.5 GW of solar modules and 4.7 GW of solar cells. It also projects the module production capacity will increase by 28% by 2025, while solar cell manufacturing capacity will increase by 82% by 2024.

Out of this upcoming capacity, 48% module and 54% solar cell capacity is projected to come up in Gujarat. More precisely, Gujarat will get an additional 25 GW of solar module capacity by 2025.

The report also cites favourable industrial policies as the top reason for the concentration of solar capacity in Gujarat. In 2010, the state government launched the Investor Facilitation Portal (IFP), which acts as a single window for all state government approvals required by investors.

Additionally, Gujarat has the lowest electricity tariff for the industrial sector which ranges between ₹4-₹4.5/unit. These factors make the state attractive for manufacturing corporations. The top 3 module manufacturers in Gujarat were Waaree Energies, Adani Solar, and Goldi solar. These manufacturing companies along with other key players in the industry have also announced plans to invest over ₹2,500 crores in the state to ramp up their PV manufacturing capacity in the coming years.

The immense solar potential, combined with the state government’s continued promotion of solar installations through policies and initiatives has made Gujarat the second largest solar-powered state in the country. It houses the nation’s first fully solar-powered village, Modhera, and approximately two-thirds of the country’s rooftop solar installations.

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Resource: Mercom India

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