India added 11.3 GW of solar modules and 2 GW of solar cell manufacturing capacity in the first half ending June 2024, according to a recently released report by Mercom India research.
The report, titled State of Solar PV Manufacturing in India 1H 2024, stated 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.
Mercom report projects India’s solar module manufacturing capacity to reach 172 GW, and cell capacity to touch almost 80 GW by 2026.
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.
Mercom report projects India’s solar module manufacturing capacity to reach 172 GW, and cell capacity to touch almost 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 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.
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, a more than 16% increase YoY. India’s solar cell exports reached 148.6 MW in 1H 2024, against 50.4 MW in 1H 2023.
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