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India’s capacity to manufacture solar module to reach 95gw by 2025: Mercom India Research

Published on February 01, 2023
Current context: The capacity of India to produce solar photovoltaic (PV) modules will likely surpass 39 gigawatts (GW) by the end of September 2022, and it is predicted to reach about 95 GW by the end of the calendar year (CY) 2025, according to the "State of Solar PV Manufacturing in India" report by Mercom India Research.
India’s capacity to manufacture solar module to reach 95gw by 2025: Mercom India Research

  • As of September 2022, India had a solar cell manufacturing capacity of approximately 4.7 GW, which is expected to increase seven times by the end of 2024.
  • The Indian government has set a goal to have 220 GW of solar capacity by the end of the decade, which requires a significant increase in manufacturing capacity.
  • To encourage growth in domestic solar manufacturing, states have offered various fiscal and non-fiscal incentives under industrial, electronics, and solar policies. Additionally, the Production Linked Incentives (PLI) Scheme of the Government of India (GoI) provides support for the integration of new capacity.
  • The Union Cabinet approved a Rs. 19,500 crore PLI Scheme in September 2022 with the goal of attracting Rs. 94,000 crore in investment.The companies that received incentives in the first round of the government's PLI scheme will have made significant contributions to the market by the end of 2024 with polysilicon, ingots, and wafers.
  • The domestic value chain for photovoltaic (PV) manufacturing will also be improved with the pending allocations under the second round of the PLI scheme
  • The GoI is eager to establish India as a hub for solar module manufacturing, and Indian manufacturers have met the demand for solar modules in the US, South Africa, and the UAE since 2018. The majority of solar module and cell manufacturers are located in Gujarat.


Q.1 What is the government of India doing to encourage growth in domestic solar manufacturing capacity?
a. Offering non-fiscal incentives under industrial and electronics policies
b. Implementing the Production Linked Incentives (PLI) Scheme with an investment of Rs. 94,000 crore
c. Both A and B
d. None of the above

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