Swadeshi Solar Cells: India’s Path to Indigenous Solar Manufacturing by 2028

Swadeshi Solar Cells: India’s Path to Indigenous Solar Manufacturing by 2028

 

India is ambitiously moving towards a fully indigenous solar manufacturing ecosystem by 2028. Recently announced by the Union Minister for New and Renewable Energy, this initiative aims to establish a comprehensive solar manufacturing value chain—from solar modules and cells to wafers and ingots—within the country. This comprehensive plan, supported by government schemes, policy reforms, and fiscal incentives, reflects India’s commitment to strengthening energy security, boosting employment, encouraging investment, and positioning itself as a global solar manufacturing hub.

The Initiative: Building a Complete Domestic Solar Value Chain

The Swadeshi Solar Cells initiative is a national strategy to develop an end-to-end domestic solar manufacturing ecosystem. It is supported by the Ministry of New and Renewable Energy (MNRE) through various schemes such as the Production-Linked Incentive (PLI) program. The government has also reduced the Goods and Services Tax (GST) on solar equipment from 12% to 5%, providing financial relief to manufacturers. Policy reforms are aimed at easing project approvals and land clearances, creating an enabling environment for accelerated capacity building.

Beyond modules, India has begun focusing on manufacturing upstream components like wafers—the thin silicon slices essential for solar cells—and ingots, the purified silicon blocks from which wafers are cut. This comprehensive approach will reduce dependence on imports, boost local manufacturing, and encourage private investment along with foreign direct investment (FDI).

Objectives of the Swadeshi Solar Cells Mission

The key objectives of this ambitious campaign include:

  • Reducing Import Dependence: Currently, India imports over 70% of its solar cells and wafers, primarily from China. Reducing this reliance is critical for energy security and mitigating global supply chain risks.
  • Making India a Global Solar Leader: By achieving self-reliance in solar manufacturing, India aims to secure a competitive position in the global renewables market, aligning with its vision of “Atmanirbhar Bharat” (self-reliant India).
  • Generating Employment: The initiative is expected to create thousands of direct and indirect jobs, from manufacturing to installation and maintenance, thus contributing significantly to employment growth.
  • Encouraging Investment: Through PLI incentives and streamlined policies, the government seeks to attract robust private and foreign investment to scale manufacturing capacities.

Key Features and Progress So Far

India has already achieved a significant milestone with over 100 gigawatts (GW) of solar PV module manufacturing capacity established under the Approved List of Models and Manufacturers (ALMM). The PLI scheme for solar modules has attracted investments of over ₹50,000 crore and generated upwards of 12,600 direct jobs.

Flagship programs such as the Surya Ghar Muft Bijli Yojana have benefited nearly two million households, with about half reporting zero electricity bills, showcasing the social impact of decentralised solar energy. The PM-KUSUM scheme has deployed or solarised approximately 1.6 million agricultural pumps, resulting in diesel savings of 1.3 billion litres annually, contributing to both energy security and environmental sustainability.

Fiscal and policy support include reduction of GST rates on solar goods, faster project approvals, and land allotment facilitation, ensuring timely execution and creating a conducive ecosystem for growth.

Significance of Indigenous Solar Manufacturing

The importance of establishing a completely indigenous solar manufacturing ecosystem extends beyond economic benefits:

  • Energy Security: Reducing import dependence, especially on critical upstream components like polysilicon, wafers, and cells, shields India from global supply shocks and geopolitical vulnerabilities.
  • Environmentally Sustainable Growth: Promoting solar power aligns with India’s commitment to achieving net-zero carbon emissions by 2070, facilitating a transition to clean energy.
  • Rural Income and Employment: Decentralised solar energy applications generate green jobs and supplement rural incomes, creating multiple socio-economic benefits.
  • Global Leadership: Indigenous solar manufacturing enhances India’s bargaining power and participation in the global renewable energy supply chain, boosting exports and technology collaboration.

Challenges Ahead

Despite the rapid progress and government backing, several challenges remain:

  • Technology Gaps: India currently lacks advanced technology for producing high-efficiency wafers, cells, and ingots. Bridging this gap requires enhanced investment in research and development as well as technology transfers from global leaders.
  • Import Dependencies Persist: Over 70% of upstream components are still imported, especially polysilicon, which has no significant domestic production. This hinders full value chain self-reliance.
  • Cost Competitiveness: Domestic manufacturing costs remain higher than cheap Chinese imports due to economies of scale, technological obsolescence, and limited R&D.
  • Infrastructure and Land Issues: Delays in land acquisition, logistics challenges, and inadequate power evacuation infrastructure undermine project timelines and scalability.
  • Supply Chain Vulnerabilities: High dependence on imported raw materials like polysilicon and silver paste exposes the sector to international market volatilities.
  • Skilled Workforce Shortage: There is a dearth of trained personnel equipped with expertise in cutting-edge solar manufacturing processes, impacting quality and productivity.

Policy Interventions and the Road Ahead

India’s strategy to overcome these challenges involves:

  • Strengthening the solar supply chain by promoting domestic production of raw materials and components.
  • Encouraging technology partnerships and innovation hubs focused on solar technology to upgrade manufacturing capabilities.
  • Facilitating easier access to land, power, and infrastructure through regulatory reforms and single-window clearance mechanisms.
  • Expanding training and skill development programs tailored for solar manufacturing to build a competent workforce.
  • Sustaining fiscal incentives and PLI schemes to attract continued investment and boost production.
  • Promoting export avenues for domestic solar products to integrate India into international renewable energy markets.

Conclusion

India’s vision of establishing Swadeshi Solar Cells and a self-reliant solar manufacturing ecosystem by 2028 represents a pivotal milestone in its clean energy transition. By reducing reliance on imports, fostering innovation, creating jobs, and enhancing energy security, this mission embodies the spirit of Atmanirbhar Bharat in the renewable energy sector.

While technological, infrastructural, and cost challenges remain, concentrated government support, coupled with private sector dynamism and international collaborations, can accelerate India’s rise as a global solar manufacturing powerhouse. This initiative is not only key to securing India’s energy future but also crucial for fulfilling climate commitments, propelling economic resilience, and empowering millions through sustainable development.