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Solar Energy in India

Manufacturing: Dependence on Imported Modules

India installs solar quickly but relies on imports, largely from China, for cells and modules, so policy now promotes domestic manufacturing.

Building panels at home is harder than installing them.

Import reliance

Most solar cells and a large share of modules have come from China.

Policy

Import duties, an approved list of manufacturers and a PLI scheme aim to build local capacity.

Progress

Module manufacturing capacity has expanded strongly, though cell and wafer capacity lag.

Trade-off

Protection can raise project costs in the short run.

A supply chain

Polysilicon becomes wafers, then cells, then modules, and China dominates most steps.

Assuming assembling modules equals a full supply chain

Upstream steps matter.

Key takeaways
  • India relies on Chinese cells.
  • Duties and PLI support local production.
  • Module capacity has grown.
  • Protection raises short-term costs.
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