India Cuts Solar Imports: Dependence on China Drops to 56% for Cells, 65% for Modules: Report

India has been making substantial progress in its transition towards self-reliance in solar energy. Over the years, a combination of government policies and expanding domestic manufacturing capacity has contributed to a structural shift in the country’s solar landscape.

Decline in Solar Cell and Module Imports

According to a report, India’s imports of solar cells and modules have decreased by 20% and 57%, respectively, in the first eight months of 2024-25. This marks a significant reduction in dependence on foreign suppliers, particularly China.

In 2023-24, imports from China accounted for over 90% of India’s solar cell imports. However, this has now declined to 56% for solar cells and 65% for solar modules, reflecting India’s growing emphasis on indigenous production.

Major Domestic Players Expanding Capacity

Several Indian companies are ramping up their solar manufacturing capacities to meet rising domestic demand. TP Solar (Tata Power’s solar manufacturing arm), Reliance Industries, Waaree Energies, Vikram Solar, Gautam Solar, AdSolar, and Rene Rubix are among the key players investing in large-scale production expansions.

Government Policies Driving Domestic Growth

The Indian Government has implemented various policy measures to promote local solar manufacturing. The Production-Linked Incentive (PLI) scheme has been instrumental in encouraging domestic production and reducing reliance on imports. These incentives aim to bolster India’s renewable energy capacity and make it globally competitive in solar manufacturing.

Challenges in Achieving Complete Self-Sufficiency

Despite the progress, India still relies on imports for solar photovoltaic (PV) cells and wafers due to limited domestic manufacturing capacity for cells and the absence of wafer production facilities, according to a report. While module manufacturing is expanding, the need for essential components from international markets remains a challenge.

India’s Solar Export Market on the Rise

With growing domestic production, Indian photovoltaic manufacturers are increasingly focusing on exports. According to a report, India primarily exports solar modules, with solar cell exports remaining negligible. In 2023-24, India’s solar module exports were nearly 35 times higher in value compared to solar cell exports, highlighting the country’s competitive strength in module manufacturing.

India’s Commitment to Renewable Energy Goals

At COP26 in 2021, India made a five-part “Panchamrit” pledge to strengthen its renewable energy transition. The commitments include:

• Achieving 500 GW of non-fossil fuel electricity capacity.
• Meeting 50% of total energy requirements through renewables.
• Reducing carbon emissions by 1 billion tonnes by 2030.
• Lowering emissions intensity of GDP by 45%.
• Achieving net-zero emissions by 2070.

Conclusion

India’s shift towards self-reliance in solar manufacturing is a crucial step in its clean energy transition. While domestic production continues to grow, reliance on imports for certain components remains a challenge. However, with robust government support and increasing export capabilities, India is well-positioned to strengthen its role in the global solar market.

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