India has significantly expanded its solar energy infrastructure, with solar module manufacturing capacity reaching a milestone of 210 GW by the end of 2025. A recent report by Mercom India indicates that the country added 119 GW of module capacity and over 9 GW of solar cell capacity throughout the year. This growth is largely supported by aggressive utility-scale projects and government-backed residential programs. While the domestic market is rapidly scaling, analysts suggest that full supply-demand synchronization will stabilize toward the end of 2026 as local cell production matures.
The surge in manufacturing capabilities is attributed to a combination of high-volume project pipelines and strategic policy frameworks. Key drivers include the PM Surya Ghar program, which targets massive residential rooftop installations, and the implementation of the Approved List of Models and Manufacturers (ALMM) mandates. As of December 2025, the cumulative module capacity stood at approximately 210 GW, while solar cell capacity reached 27 GW. Of these totals, 173.1 GW of module capacity and 26.5 GW of cell capacity have been recognized under the ALMM lists.
Industry experts believe that while 2026 is a pivotal year for the sector, the actual balance between domestic production and market requirements will likely materialize in the latter half of the year. Raj Prabhu, CEO of Mercom Capital Group, noted that while cell production is expected to rise after March—ahead of the June domestic cell mandate—newly established lines typically require about eight months to achieve optimal yields and stabilize operations. This suggests that the effective supply available to module manufacturers will increase at a steady, incremental pace.
The landscape of solar module manufacturing in India is also entering a phase of consolidation. The market is shifting toward larger, vertically integrated manufacturers as demand for older technology, such as mono PERC, begins to wane. Smaller facilities are facing lower utilization rates and rising capital requirements, allowing more efficient, large-scale players to capture a greater share of the domestic market.
On the international trade front, India imported approximately 99 GW of solar components in 2025, with solar cells making up 75% of those imports. Meanwhile, the export market remains heavily focused on the West; Indian manufacturers exported 5 GW of modules, with the United States receiving nearly 97% of those shipments. Solar cell exports reached 192 MW, with the United Arab Emirates emerging as the primary destination, accounting for 57% of the total volume.