India has added 119 GW of solar panel capacity and over 9 GW of cell capacity by 2025, bringing the total capacity to approximately 210 GW and 27 GW respectively, according to Mercom India. Growth was driven by strong project demand and policy support, although a supply-demand match is expected later in 2026 as domestic cell production increases.
According to a new report from India, India will add 119 GW of solar panel production capacity and over 9 GW of cell capacity by 2025. Mercom India.
The report attributes the capacity additions to strong demand from India’s utility-scale solar pipeline, which falls under residential rooftop targets Prime Minister Surya Ghar program, and the domestic cell mandate under the Approved List of Models and Manufacturers (ALMM) List II.
Cumulative module production capacity was approximately 210 GW in December 2025, while cell production capacity was approximately 27 GW. Of this, module capacity under ALMM List I totaled 173.1 GW, while cell capacity under ALMM List II stood at almost 26.5 GW at the time of the report.
“While 2026 is widely viewed as the year in which domestic module and cell production will meet demand, we believe the alignment will occur later in the year. Domestic cell production capacity is expected to begin ramping up after March, based on commissioning timelines and in anticipation of the ALMM domestic cell mandate that takes effect in June. However, newly commissioned lines typically require approximately eight months to stabilize and achieve optimal yields. As a result, the effective supply that available to module manufacturers will increase more gradually,” said Raj PrabhuCEO of Mercom Capital Group.
“India’s solar module manufacturing is ripe for consolidation. Declining mono-PERC demand, lower utilization at smaller facilities and rising capital requirements are shifting market share to larger, integrated and more efficient manufacturers,” Prabhu added.
India imported a total of 99 GW of solar panels and cells in 2025. Modules accounted for 25% of imports, while cells made up 75%.
Domestic manufacturers exported about 5 GW of solar panels in 2025 United States accounting for 96.8% of shipments. Cell exports totaled 192 MW, with the United Arab Emirates as the main destination, accounting for 57% of exports.
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