India Aims High in Solar Manufacturing to Compete with China
Jaipur, India – On the outskirts of Jaipur, a city famous for its vibrant markets and historic buildings, a lively industrial complex is taking center stage in India’s efforts to rival China in solar technology manufacturing.
As the world’s most populous country, India is aiming to capture a bigger slice of the solar market while addressing its growing domestic electricity needs. One approach has been to produce and sell solar components to its own citizens, which not only helps local industries but also bolsters energy independence.
In a government-supported area that offers tax incentives, a major solar manufacturer, ReNew, operates a sprawling factory that produces enough solar modules to generate 4 gigawatts of power annually. That’s enough to power around 2.5 million homes in India. This new facility, just two years old and employing nearly 1,000 workers, showcases the rapid growth and potential of India’s solar industry. In the past fiscal year, the nation’s ability to produce essential solar components has more than doubled.
Monisha, an engineer at ReNew, shared her enthusiasm for her work, saying, “I feel proud to contribute to the clean energy transition.” She noted that her job has given her financial independence and the opportunity to support her family.
However, India has a long road ahead to achieve a level of solar manufacturing that can compete with China, which produces over 80% of the world’s solar components and remains a key supplier for Indian manufacturers.
The Indian solar sector is also facing challenges in exporting to its largest foreign market, the United States. Recently, tariffs on Indian goods, imposed by the Trump administration, complicate sales. Despite these tariffs, which reached as high as 50%, India’s domestic demand for solar energy is expected to help cushion the impact.
Experts suggest that a significant portion of the solar panels produced in India were sold in the U.S. market, and this has enabled Indian manufacturers to modernize their operations, reducing reliance on imported Chinese parts. While exports allow manufacturers to maintain higher prices, strong domestic clean energy goals and demand ensure that they have local buyers even if foreign sales decline.
“This industry is robust enough to absorb new solar components, and we aren’t as dependent on exports as some other nations,” explained Charith Konda, an energy analyst.
Post-COVID, domestic companies like Vega Solar have shifted their focus from exports to local clientele, showing resilience and adaptability in a changing market environment.
India, recognized for being one of the largest carbon emitters, is making strides toward harnessing solar energy. The cost of solar has dramatically decreased and has become cheaper than coal, contributing to a 30-fold increase in installed solar power over the past decade.
However, there have been warnings about potential shortages. Before the recent tariffs, analysts anticipated that India’s demand for solar modules might outstrip local production within two years due to high export levels.
Konda noted that it may take time to assess the full impact of U.S. tariffs, but current orders are placed well in advance, meaning the effects won’t be immediate. Until the legal outcomes regarding tariffs are determined, uncertainty remains a concern.
In recent updates, the Indian Ministry of Renewable Energy reported that the country’s solar module manufacturing capacity has surged to 74 gigawatts, with production of solar cells tripling during the last fiscal year.
Efforts are underway to reduce dependency on China for raw materials. Although substantial imports remain necessary, government initiatives to boost domestic production of critical minerals could help.
The National Solar Energy Federation’s Shubhang Parekh commented on the ongoing challenges but expressed optimism that solutions are on the horizon. “The next few years are crucial for determining our progress,” he said.
Overall, India is positioning itself to reshape its energy future, paving the way toward significant advancements in domestic solar manufacturing.
