India's Bold Move: Mandating Locally-Made Solar Cells by 2026

India is taking a decisive step toward energy independence and sustainability by requiring all clean energy projects to use domestically manufactured solar photovoltaic (PV) modules with locally produced solar cells starting June 2026. This policy marks a major shift in India’s renewable energy strategy, aiming to reduce reliance on imports, particularly from China, while strengthening the country’s solar manufacturing ecosystem.

Reducing Dependence on Imports

Currently, a significant portion of India's solar installations rely on imported components, with China being the dominant supplier. By mandating Made-in-India solar cells, the government aims to foster self-sufficiency, enhance energy security, and create job opportunities within the domestic solar industry.

Scaling Up Domestic Manufacturing

To meet this ambitious target, India is rapidly expanding its solar manufacturing capacity. At present, the country has an estimated 80 gigawatts (GW) of PV module production capacity, while solar cell production remains comparatively lower at 7 GW. In response, major Indian corporations are making substantial investments to bridge this gap:

• Tata Power: Setting up a 4.3 GW solar cell manufacturing plant in southern India.
• Reliance Industries: Developing a 20 GW solar cell and module production facility in Gujarat.
• Adani Group: Operating an existing 4 GW solar cell and module manufacturing plant in Gujarat.

These investments underscore India’s commitment to becoming a global leader in renewable energy technology while reducing dependency on foreign supply chains.

Aligning with Renewable Energy Goals

India has set ambitious renewable energy targets, with a vision to reach 500 GW of non-fossil fuel capacity by 2030, up from its current 156 GW. The new solar manufacturing mandate aligns with this goal by ensuring that future clean energy projects are powered by indigenous technologies, boosting both economic growth and environmental sustainability.

The Road Ahead: Opportunities and Challenges

While this mandate is a step in the right direction, challenges remain. Scaling up solar cell production to meet demand requires significant investment in technology, supply chain infrastructure, and skilled labor. However, the policy also presents vast opportunities for innovation, research, and job creation in India's renewable energy sector.

To ensure a seamless transition, the government and private sector must work collaboratively to enhance manufacturing efficiency, streamline regulatory frameworks, and attract further investments. If executed effectively, this policy has the potential to make India a global hub for solar technology and manufacturing, reinforcing its position as a key player in the clean energy revolution.