India’s PV Manufacturing

Context

In January 2026, The Energy and Resources Institute (TERI) released a landmark report titled “India’s PV Manufacturing & Its Strategic Inflection Points” at the Bharat Climate Forum 2026. The release coincided with the unveiling of the National Cleantech Manufacturing Implementation Plan, aimed at securing India’s leadership in the global solar supply chain.

About the Report

Definition: A strategic assessment of the solar Photovoltaic (PV) value chain, spanning from polysilicon and ingots/wafers to cells and modules, identifying critical "inflection points" for policy and investment.
Key Trends Highlighted:
- China’s Upstream Monopoly: Global supply is heavily concentrated in China, which controls ~98% of wafers and ~92% of polysilicon production.
- India’s Downstream Success: India has "won the module battle" with a capacity of ~120–144 GW/year, far exceeding annual domestic demand.
- The "War Upstream": Despite module growth, India still imports nearly 90% of wafers and almost all its polysilicon.
- Equipment Chokepoints: Over 90% of critical manufacturing tools (like high-end furnaces and diamond-wire saws) are imported, creating high foreign exchange (FX) exposure.

Opportunities for Value Capture

Upstream Integration: India’s massive module capacity (~280 GW projected by 2030) provides a ready market for domestic polysilicon and wafer units.
Low-Cost Capital: The report proposes “Green PV Bonds” to offer capital at 4–5% interest, making capital-intensive "giga-fabs" more bankable.
Innovation Hubs: Establishing Solar Manufacturing Technology Parks with shared clean rooms and pilot labs (for HJT/TOPCon technologies) to accelerate commercialization.
ESG & Circularity: Tapping into new markets by building a robust PV recycling industry and using digital traceability for "Made-in-India" modules to meet EU/US trade norms.

Key Challenges

Supply Chain Vulnerability: Near-total reliance on Chinese upstream inputs makes Indian deployment susceptible to geopolitical disruptions.
High Risk Perception: The massive capital expenditure required for polysilicon plants makes traditional commercial financing prohibitively expensive.
Technological Lag: Rapid evolution in cell technology (e.g., from PERC to TOPCon/Perovskites) risks making current domestic lines obsolete without continuous R&D.
Recycling Infrastructure: A lack of structured "take-back" programs for end-of-life panels poses a long-term environmental and resource risk.

Way Forward

Ecosystem Building: Set up dedicated industrial parks in states like Gujarat and Tamil Nadu to cut "time-to-market" for manufacturers.
Financial De-risking: Deploy sovereign bonds and blended finance (via NIIF/DFIs) to lower the cost of capital.
Workforce Readiness: Establish a PV–Semiconductor Skill Council to create a pipeline of technicians and engineers specifically trained for advanced fab operations.
Circular Economy: Formalize PV recycling through MNRE-led consortia to recover valuable materials like silver, silicon, and high-grade glass.

Conclusion

India has successfully scaled its solar module assembly, but the next phase of Atmanirbhar (Self-Reliant) Cleantech requires moving upstream. By focusing on equipment manufacturing, affordable finance, and technology clusters, India can mitigate import risks and transform from a consumer into a global hub for solar technology.

India’s PV Manufacturing