India's Solar Manufacturing Sector Expands With 11.3 GW Module Capacity In 2024: Report

New Delhi, Oct 9 (KNN) A recent report by Mercom India Research reveals substantial growth in India's solar manufacturing sector during the first half of 2024.

The study, titled ‘State of Solar PV Manufacturing in India 1H 2024,’ indicates that the country added 11.3 gigawatts (GW) of solar module capacity and 2 GW of solar cell capacity during this period.

The expansion in manufacturing capacity is attributed to strong demand, with solar project pipelines totalling 132.7 GW projected between 2024 and 2026.

The reimposition of the Approved List of Models and Manufacturers (ALMM) order in April 2024 also contributed to this growth.

As of June 2024, India's cumulative solar module manufacturing capacity reached 77.2 GW, while solar cell manufacturing capacity stood at 7.6 GW.

The report notes that approximately 51 GW of module capacity across various technologies and wattages had received ALMM certification by the end of June 2024.

The top 10 manufacturers dominated the sector, accounting for nearly 58 percent of module production capacity and the entirety of cell production capacity.

Looking ahead, the report projects that India's solar module manufacturing capacity will reach 172 GW by 2026, with cell capacity expected to approach 80 GW.

Despite these positive developments, challenges remain. Raj Prabhu, CEO, Mercom Capital Group, highlighted that the supply of domestically made modules remains tight due to cell production capacity not keeping pace with demand.

This imbalance could lead to project delays and sustained high module prices until supply and demand equilibrate.

Gujarat emerged as the preferred state for solar photovoltaic component manufacturers, hosting about 45 percent of the country's solar module capacity and 52 percent of solar cell capacity as of June 2024.

The report also sheds light on import and export trends. In the first half of 2024, India imported 13.2 GW of modules, marking a significant year-over-year increase of 338 percent compared to the same period in 2023. Solar cell imports totalled 15.5 GW, up 152 percent year-over-year.

Exports also saw growth, with domestic manufacturers exporting over 3 GW of solar modules in the first half of 2024, representing a 16 percent year-over-year increase.

Solar cell exports reached 148.6 MW, a substantial rise of 195 percent compared to the first half of 2023.

(KNN Bureau)