Global solar PV manufacturing capacity is expected to reach almost 1,000 GW in 2024, adequate to

meet annual IEA Net Zero by 2050 demand of almost 650 GW in 2030. However, wind equipment
manufacturing continues to expand more slowly, such that it may not be able to keep pace with
demand growth under this scenario through 2030. While China will dominate global wind and solar
PV manufacturing capacity in the short term, solar PV project announcements indicate supply chain
diversification.

China reaffirmed its dominant position last year. In 2022, global solar PV manufacturing capacity
increased by over 70% to reach almost 450 GW, with China accounting for over 95% of new facilities
throughout the supply chain. In 2023 and 2024, global solar PV manufacturing capacity is expected
to double, with China again claiming over 90% of this increase. Meanwhile, the forecast expects
significant wafer, cell, and module manufacturing expansion in the ASEAN region through
investments from Chinese manufacturers. For the first time, a relatively large deployment of
manufacturing plants is also forecast for India and the United States, thanks to industrial policies
introduced last year1.

India is in position to achieve a solar photovoltaic (PV) module manufacturing capacity of 110
gigawatts (GW) by 2026, potentially ensuring self-sufficiency in meeting its demand for solar PV
modules2. The rapid growth of PV manufacturing over the past few years, driven notably by
favorable policies like the production-linked incentive (PLI) scheme, has seen a doubling of
nameplate capacity for both cells and modules.

Figure 1 Growth of Domestic PV Manufacturing Capacity

Modules Manufacturing :- According to JMK Research, India’s cumulative module manufacturing

nameplate capacity as of March 2022 was 18GW. By March 2023, the cumulative capacity had
leapfrogged to around 38GW, a remarkable addition of more than 100%. The top ten domestic
manufacturers contribute 72.3% of this cumulative capacity . As of March 2023, Waaree, with a
capacity of 9GW, is the largest module manufacturer in India.

1
https://www.iea.org/reports/renewable-energy-market-update-june-2023/is-there-enough-global-wind-and-
solar-pv-manufacturing-to-meet-net-zero-targets-in-2030
2
IEEFA South Asia & JMK Research Report : India’s Photovoltaic Manufacturing Capacity Set to Surge
 Figure 2 Current Solar Module Manufacturing Capacity of Leading Indian Companies

Cells Manufacturing :- In March 2022, the cumulative capacity of cell manufacturing was about
4.3GW, which increased to about 6.6GW by March 2023, an addition of 53.4%. According to industry
estimates, the operational capacity could be 50% (or even less) of the nameplate capacity.

Figure 3 Current Solar Cell Manufacturing Capacity in India: Manufacturer-wise Distribution

Ingots/Wafers Manufacturing :- In India, Adani Solar is the only company that has demonstrated a
product in the ingots/wafers stage. In December 2022, Adani Solar introduced a large-sized
monocrystalline silicon ingot in its Mundra (Gujarat) facility. This development led the company to
become India’s first manufacturer of monocrystalline silicon ingots, capable of producing M10
(182mm) and M12 (210mm) size wafers. Adani Solar will exclusively use these ingots to produce its
modules, whose efficiencies will range from 21% to 24%.
Adani Solar has initiated wafer production, it also plans to add 2GW of ingots/wafers capacity by
December 2023, which it intends to scale up to 10GW by 2025.

About Govt Production Linked Incentive (PLI) Scheme:-

The Indian government initiated the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV
Modules to boost domestic manufacturing, decrease reliance on imports, and advance the renewable
energy sector. This scheme, executed in two phases, aims to establish a robust solar PV manufacturing
capacity, introduce advanced technology, encourage integrated plants for quality control, and foster a
local material ecosystem in solar production. Tranche-I targets a capacity of 8,737 MW, with a total
support of Rs 4,500 crore and Tranche-II targets a capacity of 39,600 MW, with a total support of Rs
19,500 crore, promoting substantial investment and employment in the solar manufacturing industry 3.

Tranche-I Tranche-II

 Issue date for Scheme Guidelines for

 Issue date for Scheme Guidelines for
Production by MNRE: 28th April 2021
 Approval by the Union Cabinet on 7th April
2021.
 MNRE issued Scheme Guidelines with Rs.
4,500 crore outlay
 IREDA as the implementing agency
 Bid Documents issued for selection of
manufacturers.
 Letters of Award issued to three successful
bidders in Dec 2021 for 8,737 MW capacity.
 This total integrated capacity of 8737 MW was
allocated under Tranche-I of the Scheme, in
November-December 2022.4
Production by MNRE: 30th September 2022
 Union Cabinet approval on September 21,
2022
 MNRE issued Scheme Guidelines with Rs.
19,500 crore outlay
 SECI as the implementing agency
 Tender document issued for selection of Solar
PV manufacturers.
 Letters of Award (LoAs) issued to 11 bidders
in April 2023 for 39,600 MW capacity.
 Manufacturing capacity totaling 7400 MW is
expected to become operational5 :
 By October 2024 :7400 MW,
 By April 2025 : 16,800 MW
 BY April 2026 : Balance 15,400 MW
 The Tranche-II is expected to bring in an
investment of Rs. 93,041 crores.
 It will also generate a total of 1,01,487 jobs
(35,010- direct employment and 66,477-
indirectly employed)

3
https://mnre.gov.in/production-linked-incentive-pli/
4
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1911380
5
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1911380