India solar manufacturing needs government incentives to reduce the risk of equipment shortages, Solex Energy Chairman and Managing Director Chetan Shah said, as China considers restricting exports of technologies used to make solar equipment.
Key Takeaways
- China has proposed restrictions covering 12 technologies used in solar equipment manufacturing.
- Shah estimates India has substantially more capacity to make solar modules than the cells that go into them.
- He called for a delay of at least 12 months to the ALMM-II timeline and support for domestic equipment production.
India solar manufacturing faces a capacity gap
Speaking at the Renewable Energy India Expo in Greater Noida, Shah warned that if domestic cell capacity is not built on time, India could face a shortage of solar modules, project delays and pressure on tariffs.
As of June 2026, India had about 262 GW of module manufacturing capacity but only about 37 GW of cell capacity, Shah said. He estimated ingot and wafer capacity at 2 GW and said the country had no polysilicon capacity.
Shah also said much of the installed capacity used older MONO PERC technology and that some capacity was not operational. He estimated that China controls 75% to 90% of the global solar supply chain.
| Item | Details |
|---|---|
| Module capacity | About 262 GW as of June 2026 |
| Cell capacity | About 37 GW as of June 2026 |
| Ingot and wafer capacity | Estimated at 2 GW |
| Polysilicon capacity | Nil, according to Shah |
Extension and equipment incentives proposed
Shah asked the Indian government to extend the timeline for ALMM-II, a framework requiring the sourcing of made-in-India cells from an approved list, by at least 12 months and include all types of solar projects. He said an extension would help local companies fulfil orders while manufacturers establish cell capacity.
He also proposed a dedicated production-linked incentive or capital subsidy for domestic manufacturing of photovoltaic equipment, spare parts and consumables, with participation from Indian capital-goods companies, CSIR laboratories and IITs.
Calls for alternative technology sources
Shah urged the government to use partnerships with the United States, European Union, Japan, Korea and Taiwan to secure alternative equipment and process technology. He also called for diplomatic engagement with China to protect orders already contracted and under execution.
China’s restrictions remain a proposal. The stated rationale is that the technologies also have uses in aerospace, defence and other sensitive sectors.
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