Indian Economy News

India added 21 GW of solar modules and 3 GW of cell manufacturing capacity in 2023.

  • IBEF
  • April 3, 2024

In 2023, India made significant strides in its solar energy sector, installing 20.8 GW of solar modules, and establishing 3.2 GW of cell manufacturing capacity, according to Mercom Capital. By December 2023, the country's cumulative solar module manufacturing capacity reached 64.5 GW, with 60% of the installed capacity focused on M10 and G12 wafer sizes. Monocrystalline modules dominated production at 67.5%, followed by polycrystalline, TOPCon, and thin film modules. The report anticipates robust growth, projecting module manufacturing capacity to exceed 150 GW and cell capacity to surpass 75 GW by 2026. However, challenges persist, with Indian manufacturers urged to navigate geopolitical tensions and trade disputes while simultaneously boosting domestic demand to absorb the surge in production.

Geographically, Gujarat led in PV manufacturing, accounting for 46.1% of solar modules, while Telangana topped in annual solar cell production at 39% capacity. Tendering activity for solar module procurement in 2023 reached 9.7 GW. Despite a notable increase in imports of 16.2 GW of modules and 15.6 GW of cells compared to 2022, domestic exports also surged, with 4.8 GW of modules and 286.3 MW of cells shipped abroad in 2023. As India's solar energy sector expands, attention must be paid to sustaining growth amidst global trade dynamics and fostering robust domestic consumption.

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