The Story of India’s Solar Market Growth!
India has become one of the major solar energy markets in the world. To understand India’s position in the solar market, it is important to divide it into three different categories.
- Solar manufacturing: How much of the world’s solar equipment is manufactured in India.
- Solar power generation: How much energy India generates from solar power and where it stands in comparison with other countries.
- Future targets and goals: Future targets to support solar manufacturing and energy generation in India.
Solar Manufacturing: India’s solar manufacturing industry has evolved from a small, technology-driven photovoltaic (PV) sector in the 1970s and 1980s into one of the world’s major solar module manufacturing hubs. But the real story began in the 2010s, when India launched the Jawaharlal Nehru National Solar Mission to rapidly scale up solar power generation and manufacturing. It aimed to expand solar power installations, support domestic capabilities, and establish a large solar market.
As demand increased, module manufacturing and assembly capacity expanded. However, domestic manufacturers faced tough competition because affordable solar modules and solar cells were imported from China.
In 2021, two important developments took place: the government of India introduced the Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules and the Approved List of Models and Manufacturers (ALMM) framework. These measures aimed to encourage investment in domestic manufacturing, particularly in integrated facilities producing more than just finished modules.
In 2025, India achieved the historic milestone of 100 GW of solar PV module manufacturing capacity under ALMM. Manufacturers have increasingly invested in larger production lines, automation, bifacial modules, N-type TOPCon cells, and integrated solar manufacturing.
India’s policy focus has increasingly included upstream capacity for polysilicon, ingots, wafers, and cells, alongside module production. The main challenge is to develop a competitive domestic supply chain in terms of cost, quality, technology, and scale—not just to increase module assembly capacity.
Solar Power Generation: In 1982, Prime Minister Indira Gandhi established the Department of Non-Conventional Energy Sources, which later evolved into the Ministry of New and Renewable Energy (MNRE). The potential of solar power had been recognised earlier.
India’s solar success didn’t happen overnight; it has been driven by a strong government vision and well-planned policies. When Prime Minister Manmohan Singh decided in 2009 that India should have a national solar mission, the country’s solar power capacity was barely a few hundred megawatts (MW). The mission was launched in 2010 with the ambitious goal of achieving 20 GW of solar power capacity by 2022. India has significantly increased its solar power capacity with the help of various government initiatives. By September 2026, India’s installed solar power capacity had reached 171.05 GW. The nation has become one of the fastest adopters of solar power in the world.
Government programmes like PM Surya Ghar: Muft Bijli Yojana empower residential households to generate their own electricity, with subsidies varying from 40% to 60% for different setups. The PM-KUSUM Yojana enables farmers to generate their own electricity through solar pumps and even sell surplus power back to the grid. The Production Linked Incentive Scheme is boosting domestic solar panel manufacturing, reducing dependence on imports, and promoting “Make in India” innovation.
Future Targets and Goals: India aims to reach 500 GW of total non-fossil fuel capacity by 2030, with solar power expected to contribute roughly 280 to 300 GW of that total. As of 30 September 2026, India had approximately 171.05 GW of installed solar capacity, according to MNRE. To reach 280 GW, India needs to add approximately 109 GW of solar capacity after September 2026. This requires an average of roughly 26 GW annually over the remaining period through the end of 2030, although actual installations will vary year by year.
India aims to expand domestic solar module manufacturing to meet rising demand and compete globally. The government is promoting solar cell production through PLI and ALMM schemes, targeting indigenous solar cell manufacturing by 2028. It also seeks to reduce dependence on imported polysilicon, ingots, and wafers. ALMM requirements for ingots and wafers are scheduled to take effect from June 2028.