According to the latest report of Mercom India research, as of the first half of 2024, India has added 11.3GW of solar module and 2GW of solar cell manufacturing capacity.

The State of Solar PV Manufacturing in India H1 2024 report states that the increase in manufacturing capacity in H1 2024 was mainly driven by strong demand, with a total installed capacity of 132.7 GW for solar projects between 2024 and 2026, and the reimplementation of the Model and Manufacturer Approval List (ALMM) order from April 2024.

As of June 2024, the cumulative manufacturing capacity of photovoltaic modules in India has reached 77.2GW, and the total solar cell manufacturing capacity has reached 7.6GW. The top 10 manufacturers account for nearly 58% of module volume and 100% of cell production capacity.

More than 57% of installed module manufacturing capacity is used to manufacture solar modules in M10 and G12 silicon wafer sizes; Single-crystal PERC components account for the majority of India's component production capacity, followed by TOPCon, polycrystalline and thin-film components.

The report shows that by 2026, India's solar module manufacturing capacity will reach 172GW and battery capacity will reach nearly 80GW.

"Despite the significant increase in production capacity, the supply of domestic components is still tight, mainly because battery capacity has not kept up. Without a significant and rapid increase in battery capacity, many projects will face delays due to domestic supply shortages. Until the supply and demand balance improves, average component prices are expected to remain high, especially with limited import supply. As countries develop local manufacturing supply chains and trade restrictions continue to tighten, relying on exports as a long-term growth strategy for manufacturers remains dangerous, "said Raj Prabhu, CEO of Mercom Capital Group.

Gujarat is the preferred state for solar PV module manufacturers. As of June 2024, about 45% of the country's solar modules and 52% of its solar cell capacity are located in Gujarat.

In the first half of 2024, component imports were 13.2GW, an increase of more than 338% compared to the first half of 2023. More than 84 percent of these solar modules were imported in the first quarter of this year in anticipation of the reimplementation of ALMM orders. In the first half of 2024, India's solar cell imports totaled 15.5 GW, up nearly 152% year-on-year, with imports exceeding 46% in the first quarter.

In the first half of 2024, domestic manufacturers exported more than 3GW of solar modules, an increase of more than 16% year-on-year. India's solar cell exports reached 148.6MW in the first half of 2024, compared to 50.4MW in the first half of 2023.