India’s solar energy sector is growing at a record pace, transforming the nation from a major importer into a rising global exporter of solar technology. In the last ten years, India’s installed solar capacity has expanded around 32 times, reaching about 127.3 gigawatts as of September 2025. Solar power now contributes to over one-fourth of the country’s total installed electricity capacity. This remarkable growth supports India’s climate goals of achieving 500 gigawatts of renewable energy by 2030 and net-zero emissions by 2070.

This progress has been powered by supportive government policies such as the Production Linked Incentive scheme, the Approved List of Models and Manufacturers framework, and the imposition of Basic Customs Duty on imported equipment. These measures have encouraged domestic production and reduced dependence on foreign imports. Thanks to these efforts, India’s solar module manufacturing capacity has reached nearly 100 gigawatts, making it the fourth largest manufacturer in the world. Major Indian companies like Adani, Waaree, and Tata Power Solar are leading the transition through backward integration, setting up facilities to produce cells, wafers, and ingots locally. This approach aims to reduce dependence on imports, as nearly 80 percent of solar cells still come from China.

While module production capacity has seen a sharp rise—from 72 gigawatts in March 2024 to about 118 gigawatts by July 2025—the growth in domestic cell capacity has been slower, reaching around 27 gigawatts. This imbalance means module producers still rely on imported cells. However, the outlook for the next few years is promising. India aims to raise module capacity to around 215 to 220 gigawatts by the financial year 2028, while cell capacity is projected to increase to about 100 to 105 gigawatts. To achieve the estimated 215 to 220 gigawatt solar capacity target by FY28, India will need about 36 to 47 crore solar panels. This shows the massive scale of demand for a strong, self-sufficient solar manufacturing ecosystem.

India’s push for self-reliance is already visible in trade performance. The country’s solar photovoltaic exports have jumped more than tenfold between FY19 and FY25, reaching a peak in FY24. In value terms, exports stood at around Rs 94.6 billion in FY25. The United States remains the main market, as American developers seek to diversify supply chains and reduce dependence on China. Although exports briefly declined due to U.S. checks under the Uyghur Forced Labour Prevention Act, they recovered quickly in the early months of FY26.

Looking ahead, private companies have announced plans to add more than 110 gigawatts of new module manufacturing capacity, along with major investments in cell production. This suggests that within the next few years, India’s total module and cell output will exceed domestic demand. Once that happens, exports will become a major growth driver for the sector. Experts believe that India could achieve complete solar self-sufficiency in the next four to five years. However, challenges such as limited polysilicon production and scaling up exports will need careful attention. Despite these hurdles, India’s rapid progress shows its strong potential to become a leading global hub for clean energy manufacturing.

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