India adds 11.3 GW of solar module capacity, 2 GW of cells in H1 2024

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

It attributed the increase to high demand, driven by a 132.7 GW solar project pipeline expected between 2024 and 2026, and the restoration of the Approved List of Models and Manufacturers (ALMM) order in April 2024.

By the end of June 2024, India’s cumulative solar module capacity reached 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 India's solar module manufacturing capacity will hit 172 GW and cell capacity to approach 80 GW by 2026. More than 57% of the installed module capacity is geared for M10 and G12 wafer sizes. Most of the production comes from monocrystalline passivated emitter and rear cell (PERC) modules, followed by tunnel oxide passivated contact (TOPCon), polycrystalline, and thin-film modules.

“Despite substantial capacity additions, the supply of domestically made modules remains tight, largely because cell production capacity has not kept pace. Without a significant and rapid increase in cell capacity, many projects will face delays due to domestic content supply 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 continuing to tighten as countries develop their own local manufacturing supply chains, relying on exports as a long-term growth strategy for manufacturers remains very risky.”