Despite rising domestic demand, India's solar modules export will go up by FY30: Report

India's solar module manufacturing industry is set for significant growth over the next five years, with the export-import balance expected to improve considerably, according to a report by CRISIL. The report highlights that robust domestic demand for solar modules, projected at an average of 50-55 gigawatts (GW) annually from FY24 to FY30, will be a key driver. With increased domestic production, oversupply is anticipated from FY25 onwards, creating export opportunities. In FY24, India exported around seven GW of solar modules, accounting for approximately 50% of domestic production. As production exceeds local demand, export potential is expected to rise, even though the share of exports in total production will likely moderate to 25-32% by FY30 due to higher domestic consumption. 

On the import side, reintroducing the Approved List of Models and Manufacturers (ALMM) in FY25 and rising nameplate capacity is expected to reduce import dependence drastically. Solar modules import reliance, which stood at 59% in FY24, is projected to fall 5-10% by 2030. However, due to limited integrated manufacturing capacity, the domestic solar industry will still depend on imports for upstream components such as polysilicon, wafers, and cells. Although India’s module manufacturers are set to become less reliant on imported cells with expanded domestic manufacturing, certain critical components will continue to be sourced abroad. With increasing production capacity and policy support, India's solar module manufacturing sector is poised to strengthen its global presence, supporting the country’s clean energy goals while reducing import reliance.  

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.