From 2.3 GW to 100 GW in a decade: Inside India’s rapid rise as a solar manufacturing powerhouse

India has reached a historic milestone by achieving 100 gigawatts (GW) of solar photovoltaic (PV) module manufacturing capacity listed under the Approved List of Models and Manufacturers (ALMM) — a leap from just 2.3 GW in 2014. The announcement, made by Union Minister for New and Renewable Energy Pralhad Joshi, reflects the country’s rapid progress in building a self-reliant solar manufacturing ecosystem under the Atmanirbhar Bharat vision and its alignment with global clean energy transition goals.

According to Joshi, the surge in capacity is the result of strong policy support, particularly the Production Linked Incentive (PLI) Scheme for high-efficiency solar modules, combined with a broader national commitment to reach 500 GW of non-fossil capacity by 2030. This achievement positions India as one of the largest solar manufacturing hubs globally, with the capability to meet domestic demand and compete in export markets.

How did India expand solar PV manufacturing capacity from 2.3 GW in 2014 to 100 GW in just over a decade?

India’s solar manufacturing story has been shaped by a series of targeted policy interventions, infrastructure investments, and private sector participation. In 2014, the country’s installed solar module manufacturing capacity was just 2.3 GW, limiting its ability to scale up rapidly in response to growing renewable energy needs.

The turning point came with the introduction of the ALMM Order by the Ministry of New and Renewable Energy (MNRE) in January 2019, which mandated that only models and manufacturers listed under ALMM could be used in government-supported projects. The first ALMM list, published in March 2021, featured 21 manufacturers with a combined capacity of about 8.2 GW.

Since then, the capacity has grown more than twelvefold in just over four years, propelled by incentives such as the PLI Scheme for High Efficiency Solar PV Modules, customs duty protections, and state-level support for industrial clusters. The number of ALMM-listed manufacturers has now expanded to 100, collectively operating 123 manufacturing units across the country.

This expansion is not limited to scale — many manufacturers have upgraded to high-efficiency technologies such as mono-PERC, TOPCon, and heterojunction (HJT) modules, while several have vertically integrated operations to produce cells, wafers, and even ingots domestically.

Why is the 100 GW milestone significant for India’s renewable energy and industrial policy objectives?

The crossing of the 100 GW manufacturing mark is strategically important for multiple reasons. First, it enhances India’s energy security by reducing dependence on imported modules, particularly from China, which still dominates the global supply chain. Second, it strengthens India’s position in the global solar value chain, enabling the country to export high-efficiency modules to markets in Europe, the United States, and Southeast Asia.

From an industrial policy perspective, the achievement demonstrates the effectiveness of targeted manufacturing incentives in building domestic capacity at scale. Analysts note that by combining market demand from India’s ambitious solar installation targets with industrial support measures, policymakers have created a stable environment for long-term investment in the sector.

Institutional investors view the milestone as an indicator of India’s maturing renewable manufacturing ecosystem. The availability of large-scale, high-efficiency, and competitively priced modules is expected to reduce project costs and improve execution timelines for utility-scale solar developers.

What role did the Production Linked Incentive Scheme and other policy measures play in this growth?

The PLI Scheme for High Efficiency Solar PV Modules has been a cornerstone of India’s solar manufacturing expansion. Under the scheme, manufacturers are incentivized to produce high-efficiency modules with minimum performance benchmarks, while also integrating backward supply chains for cells, wafers, and polysilicon.

In addition to the PLI Scheme, the government has implemented basic customs duties on imported cells and modules, prioritised solar equipment manufacturing in its industrial corridor development plans, and facilitated access to low-cost finance through public sector banks and development financial institutions.

State governments have also played a critical role by offering land, power subsidies, and tax incentives to attract manufacturers to renewable energy parks and industrial zones.

How does this milestone position India in the global solar manufacturing landscape?

With 100 GW of solar module manufacturing capacity, India now stands alongside China as one of the few countries capable of producing modules at the scale required for gigawatt-level annual installations. While China remains the dominant player with over 500 GW of capacity, India’s rapid growth offers diversification in the global supply chain — a factor increasingly valued by buyers seeking to reduce geopolitical and supply-chain risk.

India’s competitive advantage lies in its large domestic market, growing export capabilities, and policy stability. Manufacturers are already securing orders from international markets, with Indian-made modules gaining traction in regions prioritizing supply chain diversification.

What are the next steps to strengthen India’s solar manufacturing ecosystem beyond the 100 GW mark?

While the 100 GW milestone is a major achievement, industry stakeholders and policymakers are already looking ahead. The next phase will require scaling up production of upstream components such as polysilicon and wafers, areas where India still depends heavily on imports.

Experts believe that deepening vertical integration will be critical to achieving cost competitiveness across the entire value chain. Investment in R&D, particularly in emerging technologies like perovskite tandem cells, will also be necessary to maintain India’s competitive edge.

MNRE has indicated that it will continue engaging with manufacturers, developers, and state governments to ensure the sector remains inclusive, competitive, and innovation-driven. Future policy measures are expected to focus on expanding the domestic supply chain, facilitating technology transfer, and developing skilled manpower for advanced manufacturing operations.

What does this milestone mean for India’s 2030 renewable energy targets and global decarbonization goals?

India has committed to achieving 500 GW of non-fossil fuel capacity by 2030, with solar expected to contribute a major share. Having a robust domestic manufacturing base reduces supply-chain bottlenecks, lowers the risk of cost escalations, and ensures timely delivery of projects — all of which are crucial for meeting the 2030 deadline.

On a global scale, India’s solar manufacturing expansion contributes to the availability of competitively priced renewable energy technology, helping developing and developed nations alike accelerate their decarbonization plans. For climate policy advocates, India’s 100 GW milestone is a signal that large emerging economies can rapidly scale clean energy manufacturing when supported by targeted industrial policy.