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India’s Solar Module Capacity to Hit 220 GW by FY2028 Breakthrough

Soniya Gupta

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Solar

India’s solar module manufacturing capacity increased from 72 GW in March 2024 to nearly 118 GW by July 2025, while cell capacity rose from 8 GW to around 27 GW. Current operational outputs are 50-60 GW for modules and 8-10 GW for cells, indicating a significant dependency on cell imports, primarily from China. In response, India has implemented the Approved List of Models and Manufacturers (ALMM) to promote domestic module use and is developing further rules to enhance local cell manufacturing. Exports of solar products have surged dramatically, from Rs 8.7 billion in FY2019 to Rs 94.6 billion in FY2025, driven largely by demand from the US amid concerns over Chinese supplies.

However, exports dipped in FY2025 but rebounded in early FY2026, (sola) as imports decreased by 54%, highlighting India’s progress towards solar manufacturing self-sufficiency India’s renewable energy revolution is entering a transformative phase as the nation’s solar module manufacturing capacity is set to achieve a remarkable 220 gigawatts (GW) by FY2028, marking a defining milestone in its pursuit of sustainable energy independence. With rapid technological advancements, robust policy frameworks, and unprecedented private investments, the country is not only moving closer to its net-zero by 2070 target but also establishing itself as a global hub for clean energy manufacturing.

India’s Renewable Energy Vision and Roadmap

This growth underlines India’s commitment to energy security, economic expansion, and green innovation a true breakthrough in its journey toward a carbon-neutral future. Over the past decade, India has transitioned from being a power-deficient nation to one of the fastest-growing renewable energy producers in the world. The government’s target to achieve 500 GW of renewable energy capacity by 2030 is backed by a strategic roadmap emphasizing domestic manufacturing of solar modules and components. The National Solar Mission, launched under the Ministry of New and Renewable Energy (MNRE), continues to drive this growth with policy interventions.

Investment incentives, and infrastructure support India’s renewable push is not just about achieving energy targets; it’s a vision for Atmanirbhar Bharat (Self-Reliant India). By reducing dependence on imported solar panels primarily from China the country aims to strengthen its industrial base while promoting sustainability The government’s Production Linked Incentive (PLI) scheme for (Innovation) high-efficiency solar photovoltaic (PV) modules has emerged as the backbone of this growth. Introduced to boost domestic production and attract private investment, the scheme provides financial incentives to companies setting up integrated manufacturing units from polysilicon.

Emerging Industrial Hubs and State Participation

To wafers, cells, and modules This initiative has already attracted bids from major players like Adani Solar, Waaree Energies, Renew Power, and Tata Power Solar. The goal is clear to build a fully integrated domestic solar supply chain capable of producing high-efficiency modules at globally competitive prices. Additionally, the Basic Customs Duty (BCD) on imported solar modules and cells encourages local manufacturing by making imports less attractive Several Indian states have become emerging hubs for solar manufacturing. Gujarat, with its dedicated renewable energy parks in Dholera and Kutch, has established itself as a manufacturing leader. Rajasthan and Tamil Nadu have followed closely, offering infrastructure.

Skilled labor, and favorable land policies. Andhra Pradesh, Maharashtra, and Karnataka are also witnessing rapid industrial activity in solar module assembly and R&D investments State-level initiatives such as the Solar Policy of Gujarat 2021 and Rajasthan Solar Energy Policy 2023 are creating a competitive environment that accelerates manufacturing expansion. These policies ensure fast project approvals, land availability, and streamlined logistics critical for achieving the 220 GW target India’s private sector has been a catalyst in driving the solar revolution. Adani Solar, for instance, operates one of the world’s largest vertically integrated solar manufacturing facilities and plans to expand beyond 10 GW by FY2026.

Waaree Energies has crossed 12 GW in annual production capacity, while Vikram Solar, Renew Power, and Premier Energies are rapidly scaling up operations Technological innovations are also reshaping the industry. Indian companies are investing in bifacial panels, TOPCon (Tunnel Oxide Passivated Contact), and heterojunction (HJT) technologies to enhance module efficiency and performance under varied climatic conditions. These advancements ensure that Indian-made solar products compete globally, both in quality and cost-effectiveness.

Sustainability and Environmental Impact

Beyond capacity expansion, sustainability remains a key focus. The government encourages the use of eco-friendly production processes, solar panel recycling programs, and low-carbon logistics. Manufacturing facilities are increasingly adopting green energy-powered operations, reducing emissions across the entire supply chain This circular approach not only aligns with India’s Climate Action Goals under the Paris Agreement but also strengthens its position as a responsible global leader in clean energy. The expected reduction in carbon dioxide emissions from the 220 GW capacity could exceed 400 million tons annually, marking a significant step toward net-zero aspirations.

The expansion of manufacturing capacity has far-reaching economic implications. According to industry estimates, the solar sector could create over 100,000 direct jobs and 400,000 indirect employment opportunities by 2028. This includes roles in engineering, assembly, logistics, R&D, and maintenance Additionally, the increase in domestic manufacturing capacity helps stabilize India’s trade deficit by reducing import dependency, fostering economic resilience, and encouraging exports to global markets. As more investors participate in India’s solar value chain, the country’s GDP contribution from renewables is expected to rise substantially over the next decade.

Challenges and the Way Forward

While the progress is promising, challenges remain. Supply chain vulnerabilities, high upfront investment costs, and limited access to semiconductor materials continue to test manufacturers. However, strategic partnerships with international technology firms, government-backed infrastructure corridors, and research support are gradually addressing these hurdles The focus now shifts to ensuring that India not only meets the 220 GW goal but does so sustainably and inclusively. This involves strengthening R&D collaborations between the Indian Institute of Technology (IITs), National Institute of Solar Energy (NISE), and private firms to develop indigenous high-efficiency solar technologies.

India’s surge holds global importance. Through initiatives like the International Alliance (ISA)  headquartered in Gurugram India is leading a coalition of over 100 nations in promoting solar adoption worldwide. This collaboration aims to mobilize over $1 trillion in investments by 2030 for affordable and clean energy access across developing nations As global investors and policymakers look toward sustainable energy transitions, India’s leadership in manufacturing becomes a beacon of opportunity. The country’s progress represents a blueprint for balancing economic growth with environmental responsibility.

Toward a Brighter, Greener Future

The achievement of 220 GW solar module capacity by FY2028 will be more than just an industrial milestone it will mark India’s rise as a renewable energy superpower. Backed by a strong policy ecosystem, private sector innovation, and environmental responsibility, India is poised to redefine the global landscape This breakthrough signifies a future where sustainable growth and technological progress go hand in hand, lighting up not just homes but the entire nation with clean, affordable, and indigenous

Q1. What is India’s projected solar module capacity by FY2028?
India’s module capacity is expected to hit 220 GW by FY2028, up from around 64 GW in FY2025.

Q2. What factors are driving this growth?
Government incentives like the PLI scheme, import duties, and renewable energy targets under India’s 2070 net-zero commitment are major drivers.

Q3. Which states are leading solar module manufacturing?
Gujarat, Rajasthan, Tamil Nadu, and Andhra Pradesh are major hubs due to strong infrastructure and sunlight availability.

Q4. How will this impact India’s energy mix?
It will help India reduce fossil fuel dependency, lower emissions, and achieve 50% renewable energy share by 2030.

Q5. What role does the private sector play?
Companies such as Adani, Waaree Energies, and Tata Power Solar are expanding manufacturing and R&D capacities.