India Mandates Local Solar Cells For Govt-Funded Projects To Spur Domestic Manufacturing

New Delhi, Dec 11 (KNN) India's Renewable Energy Ministry has announced a significant policy shift to bolster domestic solar manufacturing, mandating that clean energy projects funded by the government must exclusively use locally produced solar cells starting June 2026.

This strategic move aims to reduce dependence on Chinese solar technology imports and accelerate the nation's domestic manufacturing capabilities.

The directive expands upon existing regulations that already require government projects to utilise photovoltaic (PV) modules from approved domestic manufacturers.

By extending these requirements to solar cells, the government seeks to create a more robust and self-reliant solar supply chain within the country.

Currently, India's solar infrastructure presents a mixed landscape. The country has approximately 80 gigawatts of solar PV module manufacturing capacity, but its solar cell production remains limited to just over 7 gigawatts.

This gap has historically necessitated significant reliance on imported Chinese cells to meet module production needs.

Several prominent Indian corporations are positioning themselves to capitalise on this policy shift.

Tata Power has recently commissioned a 4.3 gigawatt cell manufacturing plant in southern India, while Reliance Industries is preparing to launch the first phase of a 20 gigawatt integrated solar cell and module production facility in Gujarat.

The Adani Group has also established a 4 gigawatt cell and module-making plant in the same state.

Other companies including Waaree Energies, Vikram Solar, and Solex Energy are actively developing cell manufacturing pipelines, signaling growing industry confidence in domestic production capabilities.

The government's broader strategic vision includes increasing India's non-fossil fuel energy capacity from the current 156 gigawatts to 500 gigawatts by 2030.

However, industry experts like Vikram V from ICRA anticipate potential challenges, noting that domestically produced cells might initially command higher prices compared to imports.

The success of this initiative will depend on scaling up domestic cell manufacturing capacity and improving cost economics.

The ministry has indicated it will release a comprehensive list of approved cell manufacturers, facilitating a structured transition towards domestic solar technology production.

This policy represents a significant step in India's commitment to renewable energy development and technological self-sufficiency.

(KNN Bureau)