Unlocking the potential of small manufacturers in India’s clean energy future
By Sova Solar

Small Manufacturers. Big Impact.

India’s solar ambition is no secret. With a national target of 500 GW of non-fossil capacity by 2030, solar is expected to lead the charge in clean energy adoption. But here’s the reality:

India won’t reach its solar goals with large players alone.

To build a truly self-reliant and scalable solar manufacturing ecosystem, we need to empower our MSMEs (Micro, Small, and Medium Enterprises) — not just as suppliers, but as innovation hubs, component makers, and decentralized manufacturing units.

At Sova Solar, where we’ve grown steadily since 2008, we’ve seen firsthand the power of small, focused manufacturing units — and what they can bring to India’s clean energy table.

Why MSMEs Matter in Solar Manufacturing

1. Agility and Speed

Unlike large corporations with complex decision cycles, MSMEs can pivot faster — adopting new technologies, tailoring products to market needs, and responding quickly to demand.

2. Localized Production = Faster Execution

By decentralizing module or component manufacturing, MSMEs reduce logistics costs and project delays, especially in tier 2 and 3 cities where solar demand is rising.

3. Job Creation at Scale

India’s MSME sector employs over 110 million people. Empowering solar MSMEs means creating green jobs in manufacturing, assembly, testing, and maintenance — across states.

4. Filling the Component Gap

Today, India still imports many key solar components — from junction boxes to backsheet films. MSMEs can bridge this by becoming specialized suppliers within the solar value chain.

What’s Holding MSMEs Back?

Despite their potential, MSMEs face serious barriers:

• Limited access to capital and credit lines for setting up solar-specific machinery
• High cost of compliance and certification (BIS, IEC, etc.)
• Lack of R&D infrastructure and tech partnerships
• Low visibility in government tenders and private EPC projects
  

Without targeted support, these businesses remain stuck as subcontractors, rather than evolving into leaders and exporters.

The Case for Enabling MSMEs in Solar Manufacturing

If India wants to become a true global solar manufacturing hub, it must empower MSMEs alongside large-scale players. Here’s how enabling smaller manufacturers creates nationwide impact:

• Builds Supply Chain Resilience
  MSMEs can localize the production of key components, reducing overdependence on imports.
• Accelerates Innovation
  Smaller units are often more agile, making them ideal for piloting new technologies and processes.
• Promotes Regional Industrial Growth
  MSMEs can establish facilities in tier 2 and 3 cities, bringing clean tech jobs to underserved areas.
• Boosts Export Potential
  Niche manufacturers can evolve into global suppliers of specialized solar components or technologies.
• Drives Job Creation at Scale
  Solar MSMEs can generate significant employment across manufacturing, installation, logistics, and servicing.

What Needs to Be Done

1. MSME-Focused Capital Incentives

Custom credit schemes and subsidies for setting up solar cell/module/component lines with manageable compliance expectations.

2. Access to Shared R&D Facilities

Regional technology parks and common testing labs for small manufacturers to innovate without incurring huge individual costs.

3. Policy Visibility

Inclusion of MSMEs in national tenders, PLI-linked procurement, and government procurement with relaxed eligibility norms.

4. Industry Collaboration

Large players like Sova Solar can support MSMEs via strategic outsourcing, supplier development programs, and tech partnerships — ensuring quality and scalability.

Sova Solar’s Perspective: Growth Is Collaborative

At Sova Solar, we believe India’s solar success will be built not just by industry giants — but by thousands of small manufacturers, innovators, and entrepreneurs.

Having grown from modest roots ourselves, we understand the challenges — and the opportunities — that MSMEs face.

We actively work with regional manufacturing partners and are committed to creating an ecosystem where quality, scale, and local value go hand in hand.

Final Word

India’s clean energy transition won’t be led from a single city or a single factory — it will be powered by a network of capable, future-ready manufacturers across the nation.

It’s time to move from centralization to collaboration.
From “Make in India” to “Make Everywhere in India.”

Let’s power this movement. Let’s empower our MSMEs.