9th October 2024: – In the first half (1H) 2024, 11.3 gigawatts (GW) of solar modules and 2 GW of solar cell capacity were added in India, according to the recently released Mercom India research report, State of Solar PV Manufacturing in India 1H 2024.
Manufacturing capacity additions in 1H 2024 were primarily driven by strong demand, with solar project pipelines totaling 132.7 GW between 2024 and 2026 and the reimposition of the Approved List of Models and Manufacturers (ALMM) order from April 2024.
India’s cumulative solar module manufacturing capacity reached 77.2 GW, and solar cell manufacturing capacity totaled 7.6 GW as of June 2024. Around 51 GW of module capacity across various technologies and wattages had received ALMM certification at the end of June 2024.
The top 10 manufacturers accounted for almost 58% of the module and 100% of cell production capacity as of June 2024.
Over 57% of the installed module manufacturing capacity was equipped to manufacture solar modules of M10 and G12 wafer sizes.
Monocrystalline Passivated Emitter and Rear Cell (mono PERC) modules accounted for most of the country’s module production capacity, followed by Tunnel Oxide Passivated Contact (TOPCon), polycrystalline, and thin film modules.
India’s solar module manufacturing capacity is projected to reach 172 GW, and cell capacity is projected to reach almost 80 GW by 2026, according to the report.
“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 was the preferred state for solar photovoltaic (PV) component manufacturers. About 45% of the country’s solar modules and 52% of solar cell capacity were located in Gujarat as of June 2024.
Tamil Nadu and Rajasthan followed, housing over 10% and 8% of India’s module production capacities. Telangana and Himachal Pradesh were the other leading states after Gujarat for solar cell facilities. As of June 2024, almost 28% of the solar cell facilities in India were in Telangana, and over 10% were in Himachal Pradesh.
Various government entities issued tenders totaling 7.6 GW to procure solar modules in 1H 2024, up by more than 191% YoY.
In 1H 2024, 13.2 GW of modules were imported, up more than 338% YoY compared to 1H 2023. Over 84% of these solar modules were imported in the first quarter of the year in anticipation of the ALMM order reimposition. India’s solar cell imports totaled 15.5 GW in 1H 2024, up nearly 152% YoY, with over 46% imported in Q1.
Domestic manufacturers exported over 3 GW of solar modules in 1H 2024, with exports increasing by more than 16% YoY. India’s solar cell exports reached 148.6 MW in 1H 2024, up by more than 195% YoY from 50.4 MW in 1H 2023.
Key Highlights from the Report:
- India added 11.3 GW of module capacity and 2 GW of cell capacity in 1H 2024
- The top three states for solar module manufacturing were Gujarat, Tamil Nadu, and Rajasthan
- Gujarat, Telangana, and Himachal Pradesh were the top three states for solar cell manufacturing capacity
- In 1H 2024, various government entities issued 7.6 GW of tenders to procure solar modules
- India’s solar PV module and cell imports were up over 338% and almost 152%, respectively
- India’s solar PV module and cell exports were up more than 16% and 195%, respectively
Mercom’s State of Solar PV Manufacturing in India 1H 2024 Report is 96 pages long and covers all facets of India’s solar PV manufacturing market, including demand and supply overview, top manufacturers, market outlook and projections, and manufacturing trends, among other details. For the complete report, visit: https://www.mercomindia.com/product/state-solar-manufacturing-india-1h-2024