India Emerges as Global Solar Manufacturing Hub with 172 GW Capacity

India’s solar manufacturing sector has expanded dramatically, from 2.3 GW in 2014 to reaching 172 GW of module capacity by March 2026, supported by government schemes like the PLI and ALMM. This growth is positioning India as a global hub for solar technology, reducing import dependence and creating thousands of jobs.

In FY 2025–26, India’s renewable energy sector reached a landmark, recording unprecedented growth in both solar and non‑fossil fuel capacity. On 29 July 2025, renewables supplied 51.5% of the nation’s electricity demand — the highest monthly share ever achieved.

India’s Solar Manufacturing Expansion

Capacity Growth

• 2014: Manufacturing capacity stood at just 2.3 GW.
• 2026: Expanded to 172 GW, a seventy-five-fold increase.
• India now has domestic module capacity exceeding annual demand, though upstream vulnerabilities remain.

Key Government Policies

• Production Linked Incentive (PLI) Scheme: Launched in 2021 with ₹4,500 crore, expanded in 2022 with ₹19,500 crore. Attracted ₹35,000 crore investment and created ~10,000 direct jobs.
• Approved List of Models and Manufacturers (ALMM): Introduced in 2019, expanded in 2026 to include solar cells (List-II). From June 2026, all projects must source cells from ALMM List-II, ensuring quality and reliability.

India has introduced targeted measures to boost solar manufacturing and reduce reliance on imports.

Production Linked Incentive (PLI) Scheme

• Launched in 2021 with ₹4,500 crore, expanded in 2022 with ₹19,500 crore.
• Promotes domestic production of high-efficiency solar PV modules.
• By October 2024, attracted investments worth ₹35,000 crore.
• Generated direct employment for about 10,000 people.

Approved List of Models and Manufacturers (ALMM)

• Introduced in 2019 as a quality assurance framework for solar PV modules and cells.
• Ensures only approved manufacturers and models are used in government-supported and competitively bid projects.
• Promotes domestic manufacturing by mandating certified products.

Impact of PLI and ALMM

Together, these frameworks have reinforced India’s solar manufacturing ecosystem, driving self-reliance, accelerating deployment, and instilling confidence among consumers and developers.

Taking Solar to Every Household and Farm

India’s solar journey extends beyond utility-scale projects, with schemes designed to improve energy access, lower costs, and create livelihoods.

PM Surya Ghar: Muft Bijli Yojana

• Launched on 13 February 2024 with an outlay of ₹75,021 crore.
• World’s largest domestic rooftop solar programme.
• Provides subsidies and collateral-free loans for rooftop installations.
• Implemented through a national portal for seamless registration, installation, and subsidy disbursement.

Key Achievements

• Over 43 lakh households solarised as of June 2026.
• ₹14,771.82 crore disbursed as Central Financial Assistance till December 2025.
• More than 7.7 lakh households received zero electricity bills by 9 December 2025.

Comparative Table: PLI vs ALMM

Scheme	Objective	Impact
PLI Scheme	Boost domestic manufacturing of high-efficiency solar PV modules	₹35,000 crore investment, ~10,000 jobs, reduced import dependence
ALMM Framework	Ensure quality standards for modules and cells	Mandatory use of approved products, boosts confidence in domestic manufacturing

Bhadla Solar Park 

Bhadla Solar Park 

In Rajasthan’s arid Bhadla region, vast stretches of desert have been transformed into one of the world’s largest solar power complexes. Initiated under the Solar Parks Scheme in 2015 and completed in phases by 2020, the project now spans nearly 5,700 hectares (56 sq. km.) with an installed capacity of 2,245 MW. The area’s abundant solar irradiation, minimal rainfall, and sparse vegetation make it ideal for large‑scale solar generation.

Beyond its sheer scale, Bhadla exemplifies the solar park model — shared infrastructure such as land preparation and transmission facilities enabled rapid development, attracted significant private investment, and drove competitive bidding that delivered some of India’s lowest solar tariffs, making clean energy more affordable.  

Strategic Importance

• Energy Security: Reduces reliance on imported modules, especially from China.
• Economic Development: Strengthens domestic supply chains and creates jobs.
• Climate Goals: Supports India’s target of 500 GW non-fossil fuel capacity by 2030 and net-zero by 2070.
• Global Competitiveness: India is now the second-largest solar growth market globally, surpassing the U.S. in annual additions.

Challenges Ahead

• Upstream Vulnerabilities: India must scale solar cell and wafer production to reduce dependence.
• Supply Chain Resilience: Need for diversification in raw materials and technology.
• Cost Competitiveness: Maintaining affordability while ensuring high efficiency.

Global Cooperation

• International Solar Alliance (ISA): Co-founded by India and France in 2015, now a key platform for global solar collaboration.
• One Sun One World One Grid (OSOWOG): India’s vision for interconnected renewable grids, launched with the UK in 2021.

Conclusion

India’s solar manufacturing expansion is not just about numbers—it represents a strategic shift towards self-reliance, affordability, and global leadership. With strong policy support, India is building a resilient ecosystem that can serve as a blueprint for other nations.