KEY POINTS
- Government projects must use domestically made solar cells from June 2026.
- Tata, Reliance, and Adani expand local manufacturing to meet demand.
- Policy aims to strengthen India’s clean energy supply chain and reduce import reliance.
India has announced a new policy requiring only locally made solar cells to be used in government clean energy projects starting June 2026. The Renewable Energy Ministry stated that only solar cells produced by approved domestic manufacturers will be allowed in these projects.
This move extends the government’s existing policy of using locally made photovoltaic (PV) modules in government projects. The policy aims to reduce India’s reliance on imported solar components, especially from China, and strengthen the country’s domestic manufacturing capacity.
India plans to ramp up its non-fossil fuel capacity from the current 156 gigawatts (GW) to 500 GW by 2030. Currently, India’s solar PV module manufacturing capacity stands at around 80 GW, while its solar cell production capacity is only 7 GW. The new mandate seeks to bridge this gap by encouraging investment in domestic production facilities.
The Ministry of Renewable Energy announced that it would issue a list of approved domestic cell manufacturers in the coming year, as production capacity is expected to increase significantly.
India aims to boost domestic solar cell production
Several leading Indian companies have already begun expanding their solar cell production capacity in response to the government’s push. Major firms such as Tata Power, Reliance Industries, and the Adani Group are at the forefront of this effort.
Tata Power recently launched a 4.3 GW cell production plant in southern India, while Reliance Industries is set to commission the first phase of its 20 GW integrated solar cell and module production facility in Gujarat by the end of the year. The Adani Group also operates a 4 GW cell and module production plant in the region.
Other companies, including Waaree Energies, Vikram Solar, and Solex Energy, have also initiated plans to expand their solar cell manufacturing pipelines. This increased local production capacity is expected to reduce India’s dependence on imported solar cells, which have historically been sourced from China.
Industry analysts believe that as production scales up, the cost of domestically produced cells will become more competitive. “There is a possibility that the prices of modules using domestically made cells will be higher than imported cells. Scaling up capacity and improving cost efficiency will be essential,” said Vikram V, Vice President of Corporate Ratings at ICRA.
New policy aims to reduce dependence on Chinese imports
India’s decision to mandate the use of locally made solar cells is part of a broader strategy to reduce dependence on Chinese imports. China currently dominates the global supply of solar cells, and India has been working to reduce its reliance on foreign suppliers for critical clean energy components.
According to Reuters, the government believes that by boosting domestic manufacturing, India can create jobs, promote self-reliance, and strengthen its clean energy supply chain. The decision aligns with India’s ongoing efforts to promote “Aatmanirbhar Bharat” (self-reliant India) across multiple industries.
The renewable energy sector is seen as a critical driver of economic growth and job creation. The new mandate is expected to generate more employment opportunities while accelerating India’s transition to cleaner energy sources.
With a clear roadmap for solar cell production and policy support from the government, India is positioning itself as a major player in the global renewable energy market.
