India to add 11.3 GW of solar panel capacity, 2 GW of cells in first half of 2024

According to a new report from Mercom India Research, India added 11.3 GW of solar panel capacity and 2 GW of solar cell manufacturing capacity in the first half of 2024.

It attributed the increase to strong demand, driven by a 132.7 GW solar project pipeline expected between 2024 and 2026, and the restoration of the Model and Manufacturer Approval List (ALMM) in April 2024.

At the end of June 2024, India’s cumulative solar module capacity was 77.2 GW and solar cell capacity totaled 7.6 GW. Of this, 51 GW of module capacity had received ALMM certification. The top 10 manufacturers accounted for 58% of module capacity and 100% of cell production capacity.

Mercom said solar module manufacturing capacity in India will reach 172 GW by 2026 and cell capacity will approach 80 GW. More than 57% of the installed module capacity is dedicated to M10 and G12 wafer sizes. The majority of production comes from monocrystalline passivated emitter and back cell modules (PERC), followed by tunnel oxide passivated contact (TOPCon), polycrystalline and thin film modules.

“Despite substantial capacity expansions, the supply of domestically made modules remains tight, largely because cell manufacturing capacity has not kept pace. Without a significant and rapid increase in cell capacity, many projects will face delays due to domestic content shortages,” said Raj Prabhu, CEO of Mercom Capital Group. “Average module prices are expected to remain high until the supply-demand balance improves, especially given the limited availability of imports. With trade restrictions becoming increasingly strict as countries develop their own local manufacturing supply chains, it remains very risky for manufacturers to rely on exports as a long-term growth strategy.”