Solar module manufacturing in India faces a strategic challenge as China considers restricting exports of technologies used to produce photovoltaic equipment.
Chetan Shah, Chairman and Managing Director of Solex Energy, has urged the government to incentivize domestic production and extend the timeline for implementing ALMM-II to help manufacturers expand capacity.
He warned that delays in establishing domestic solar cell manufacturing could lead to supply shortages, project delays, and pressure on tariffs.
His concerns come as India expands its renewable energy manufacturing base but remains dependent on external suppliers for critical parts of the production process.
The issue raises questions about technology access, industrial competitiveness, and the pace of India's solar supply-chain development.
India has approximately 262 GW of solar module manufacturing capacity as of June 2026, compared with around 37 GW of solar cell capacity. Its ingot-wafer capacity stood at approximately 2 GW, while polysilicon manufacturing capacity was absent, according to Shah's assessment.
This imbalance highlights the difference between assembling finished modules and producing the upstream components needed to manufacture them.
In July 2026, he argued that setting up cell production within an 18-month window was difficult because of technological complexity, land requirements, and raw-material sourcing.
His subsequent remarks on cell availability during Solex Energy's August earnings call highlighted the operational implications. Domestic cell supplies were still developing, with manufacturers awaiting the commissioning and ramp-up of new production lines.
For module producers, insufficient cell availability can constrain production planning and complicate order fulfillment.
Also Read: How Battery Economics Will Shape Electric Two-Wheeler Profit Margins
Shah has proposed extending the ALMM-II timeline by at least 12 months and widening its coverage to include all types of solar projects. The extension, he argued, would give domestic manufacturers more time to fulfill orders.
He has also called for production-linked incentives and capital subsidies for critical photovoltaic equipment, spare parts, and consumables.
Partnerships involving Indian capital-goods manufacturers, research laboratories and technical institutions could help develop domestic manufacturing capabilities.
In December 2025, Shah discussed the importance of collaboration with technology partners to improve cell efficiency and strengthen upstream manufacturing. The approach reflects the broader challenge of developing capabilities beyond module assembly.
China's proposed restrictions could add uncertainty to this transition, although their eventual scope and implementation remain important considerations.
For India, the priority is to align domestic sourcing requirements with the pace at which upstream manufacturing can realistically develop.
The ability to close the cell and wafer manufacturing capacity gap will be central to reducing supply-chain exposure and strengthening the country's long-term solar manufacturing ambitions.
.jpg "Building EV Bus Ecosystems for India's Clean Mobility Goals")
We use cookies to ensure you get the best experience on our website. Read more...
