India’s solar photovoltaic (PV) manufacturing ecosystem has undergone one of its most transformative years ever. The surge in domestic production through 2025 has repositioned India as a serious global contender in clean energy manufacturing. This shift is being led by strong policy incentives. expanding capacity across the value chain. and the rapid scaling of solar panel manufacturers in India responding to both domestic and international demand.

For solar power companies in India. this momentum represents a generational opportunity. not only to reduce import dependence. but also to build long-term competitiveness in the global solar supply chain.

In this detailed analysis. Sova Solar presents a data-backed review of India’s manufacturing expansion up to late 2025.

1. Policy Framework Driving the 2025 Manufacturing Boom

India’s manufacturing surge did not happen in isolation. It is the outcome of a decisive policy combination.

Production Linked Incentive (PLI) Scheme

The PLI program remains the backbone of domestic manufacturing expansion. providing graded incentives for integrated manufacturing from polysilicon to modules.

By June 2025:

• 18.5 GW of module capacity under PLI became operational.
• 9.7 GW of cell capacity went live.
• 2.2 GW of ingot wafer manufacturing came online.
• Total PLI awards across Tranche I and II reached 48 GW.

These incentives have reshaped cost structures. improved scale efficiencies. and accelerated the emergence of integrated solar panel manufacturers in India.

Approved List of Models and Manufacturers (ALMM)

ALMM has been a strong demand stabilizer. ensuring that developers procure from approved domestic manufacturers. strengthening the credibility of India-made modules in utility and rooftop segments.

Basic Customs Duty (BCD) on Imports

Import duties on cells and modules have pushed developers toward domestic sourcing. aligning market demand with the expanding supply capacity of solar power companies in India.

2. Capacity Additions: A Record-Breaking 2025

India’s PV manufacturing capacity growth in 2025 has been unprecedented in scale and speed.

Solar Module Capacity

• 44.2 GW added in the first half of 2025 (H1).
• Cumulative additions by October surpassed 80 GW.
• Q3 projections added further volume. taking the pace even higher.

This surge represents one of the fastest expansions globally. positioning domestic manufacturers to compete with established international players.

Solar Cell Capacity

• 7.5 GW added in H1 2025.
• Combined with PLI-driven deployments. India’s cell ecosystem is now on a stronger footing. narrowing the gap between domestic cell and module production.

Ingot Wafer Capacity

While still in the early stages. India added meaningful capacity through PLI-backed investments:

• 2.2 GW operational by June 2025.

This marks India’s first steps toward upstream integration. a crucial factor for long-term technological independence.

3. How This Growth Strengthens India’s Solar Ecosystem

The expansion in manufacturing capacity has far-reaching implications for the industry.

Reduced Import Dependency

India historically relied on imports. especially for cells. wafers. and upstream components. In 2025. domestic availability has increased significantly. giving EPC players and developers more local options and supply confidence.

Boost to Exports

As capacity scales and quality improves. solar panel manufacturers in India are becoming competitive in price and performance. opening doors to export markets across Africa. the Middle East. Southeast Asia. and Latin America.

This is supported by India’s position as a trusted. stable. quality-focused manufacturing base.

Strengthened Domestic Market Stability

With rising demand for solar installations across utility. commercial and industrial. and residential segments. solar power companies in India now benefit from improved lead times. better availability. and long-term procurement confidence.

4. Trade Dynamics in 2025: A Turning Point

The balance of trade in solar equipment is beginning to shift.

Imports are falling due to higher domestic capacity and tariff barriers. Exports are gradually increasing as manufacturers secure global certifications. Upstream dependencies remain. but the shift toward integrated manufacturing is unmistakable.

A more balanced trade ecosystem supports India’s energy security and enhances global relevance.

5. The Road to 2030: What Lies Ahead for Indian Solar Manufacturing

India’s ambition to become a global solar manufacturing powerhouse is now backed by real capacity. policy strength. and maturing domestic demand. Looking ahead. the focus will move toward:

• Advanced cell technologies such as TOPCon. HJT. and tandem structures.
• Scaling ingot wafer capacity to reduce upstream imports.
• Vertical integration that improves cost control and competitiveness.
• Sustainable manufacturing practices including recycling and circular economy pathways.
  

For Sova Solar. the next phase focuses on high-efficiency modules. reliability. and global-market readiness.

Conclusion

The year 2025 marks a turning point for India’s solar PV manufacturing sector. With strong policy frameworks. rapid capacity addition. and growing global trust. India is advancing steadily toward energy independence and global competitiveness.

As solar panel manufacturers in India expand production and solar power companies in India scale installations nationwide. the foundation for a sustainable future is becoming stronger.

Sova Solar remains committed to contributing to this transformation with reliable manufacturing. engineering strength. and long-term partnerships across the renewable energy ecosystem.