India’s shortage of domestically made solar cells is expected to ease as manufacturers increase production to meet local-content rules, industry players have said. At present, the country has around 32 GW of solar cell manufacturing capacity and is expected to rise to around 100 GW by December 2027.India already has more than 200 GW of solar module manufacturing capacity. Solar panels, or modules, are made using solar cells. The current shortage has come into focus after the government introduced the approved list of models and manufacturers for solar cells, or ALMM List-II.The rules are particularly relevant for rooftop and other projects that require locally made cells.
Cell production to rise sharply
Vineet Mittal, chairman of Avaada Group, said that the gap between supply and demand would not last for long as more cell-making capacity comes online.“India has approximately 32 GW of enlisted domestic solar-cell capacity, with further capacity expected to be commissioned and enlisted during the year. The current supply-demand mismatch is only a transitional phase as the market aligns with local content requirements soon,” Mittal told PTI.He said comparing India’s more than 200 GW of module capacity with its cell capacity could give the wrong picture. Module factories do not always run at full capacity, and many projects do not need locally made cells.“The present issue is one of matching technology, specifications and procurement schedules. This does not prove that India cannot develop adequate cell capacity,” he said.Avaada expects its cell-making capacity to reach 6 GW. It plans to supply half-cut cells to domestic module makers.“India does not need low-efficiency assembly lines to make its manufacturing numbers appear larger,” Mittal said.He said India could not become “Aatmanirbhar” if key parts used in solar and wind projects continued to be sourced mainly from overseas.“Besides exposing the industry to external pricing, trade restrictions, and shipping disruptions, it will widen the gap in technology adoption against other countries,” he said.
Companies invest in more cell plants
Gyanesh Chaudhary, chairman and managing director of Vikram Solar, said ALMM List-II had changed the focus of the industry from simply assembling modules to making more components within the country.“Backward integration is the real key to long-term energy security. Backed by strong policy pushes like ALMM List-II, Indian manufacturers are making massive capital investments to bridge this gap permanently,” Chaudhary said.Vikram Solar is on track to commission 9 GW of domestic solar cell capacity by the end of FY27, he said.The country’s ALMM-listed module manufacturing capacity has also crossed around 217 GW.Sustainable Projects Developers Association governing council member Ravi Verma said India had faced similar concerns when it began pushing for local module manufacturing.“Manufacturing capacity adapts to the certainty of demand. Investors commit capital when they can see a credible market for the resulting product,” Verma said.He said ALMM had given module makers more certainty about demand and that a clear framework for making cells locally could encourage cell manufacturers in the same way.
Module-cell capacity gap not the full picture
Analyst Avinash Gorakshakar told PTI that the current problem could not be judged simply by comparing module and cell manufacturing capacity.“Not every module factory operates at full utilisation nor does every solar project fall under domestic-content or ALMM cell requirements,” said Gorakshakar, founder of Avinash Mentor Research.ICRA had estimated in November 2025 that India’s solar cell manufacturing capacity could rise to around 100 GW by December 2027. It said investments following ALMM List-II would drive the increase.ICRA expects India’s module manufacturing capacity to cross 165 GW by March 2027. It had also warned that excess module capacity could lead to consolidation among smaller and standalone manufacturers.
