India’s solar manufacturing ecosystem is at a momentous juncture as 2025 comes to a close. What started as a mission to reduce import dependency has evolved into a powerful industrial engine, making the country one of the world’s most significant players in renewable energy. The sector, supported by stable policy frameworks and the Atmanirbhar Bharat (Self-Reliant India) vision, has moved beyond mere module assembly to component manufacturing of a more fundamental nature.
Indeed, 2025 has been the turning point of the decade, in which capacity reached new heights, thus giving the industry the liberty to shift its attention to 2026. Next year will not be about the quantity of output but rather technological excellence, R&D, driven innovation, and the solar integration into a more intelligent, storage-backed grid.
Breaking Records: The 2025 Capacity Surge
India has broken its installation and manufacturing records in 2025. As per the Ministry of New and Renewable Energy (MNRE), the total solar capacity in India went beyond 132.85 GW as of November 30, 2025. This is a massive increase from only 3 GW ten years ago. Thanks to the Production Linked Incentive (PLI) Scheme and the Approved List of Models and Manufacturers (ALMM), the domestic market has been well protected against global supply chain uncertainties. By the middle of 2025, the solar module manufacturing capacity in India was around 120 GW, and the operational solar cell capacity was nearly 29.3 GW (IEEFA, 2025). The expansion has significantly lowered the import dependency for cells, which was 40-45% at the beginning of 2024.
The manufacturing landscape has seen a similar transformation. Driven by the PLI Scheme, the industry’s most critical achievement this year has been the narrowing of the “cell-to-module” gap. This localised supply chain is the bedrock of India’s energy security, ensuring that the surge in domestic cell production—the “missing link” for the industry—stabilizes prices for long-term projects.
Policy Catalysts: PM Surya Ghar and PLI Tranche II
Government initiatives remained the primary tailwind for the sector in 2025. The PM Surya Ghar: Muft Bijli Yojana revolutionised the rooftop segment, which had historically lagged behind utility-scale solar. By late December 2025, over 2.5 million households had adopted rooftop solar, contributing roughly 7.07 GW to the national grid (PIB, 2025).
Key Policy Pillars of 2025
| Initiative | Impact in 2025 |
| PLI Tranche I & II | Enabled 48 GW of awarded manufacturing capacity across the value chain. |
| ALMM List-I (Modules) | Covered 144.8 GW of capacity, ensuring domestic procurement for government projects. |
| ALMM List-II (Cells) | Mandated cell registration, with operational capacity reaching 23.7 GW by December. |
| PM Surya Ghar | Disbursed subsidies worth ₹13,926 crore, empowering residential “prosumers.” |
Furthermore, the federal budget of 2025 briefly adjusted Basic Customs Duties (BCD) to 20% for both cells and modules to alleviate cost pressures on existing projects, though the industry remains committed to the long-term 40% module duty to protect domestic manufacturers.
Technological Evolution: The Shift to N-Type Architecture
If 2024 was the year of “scaling capacity,” 2025 was the year of “technological migration.” The industry moved decisively away from standard Mono-PERC (p-type) technology toward high-efficiency n-type architectures like TOPCon (Tunnel Oxide Passivated Contact) and HJT (Heterojunction Technology).
In the first half of 2025, TOPCon accounted for over 90% of new manufacturing capacity additions (Mercom India Research, 2025). These modules offer efficiency ratings of 24–25%, which is critical for India’s high-temperature environments. 2025 also marked the commercial debut of HJT in India, which, while more expensive, offers superior temperature coefficients and longevity—ideal for the Thar Desert and coastal installations.
The industry is now producing modules in the 600–720 Wp class. This shift is essential for India to compete in premium export markets like the US and Europe, where high-wattage ratings and low degradation fetch higher margins.
Grid Resilience and the BESS Mandate
As solar accounts for a larger share of the energy mix—now part of a non-fossil base that exceeds 50% of total installed capacity (MNRE, 2025)—intermittency has become a technical challenge. To address this, 2025 saw a massive push for Battery Energy Storage Systems (BESS).
The government approved ₹5,400 crore in Viability Gap Funding (VGF) to support 30 GWh of standalone storage. Additionally, a new advisory mandated a minimum of 10% co-located storage in all new utility-scale solar tenders. With the Central Electricity Authority (CEA) projecting a requirement of 82 GWh of storage by 2027, the synergy between solar manufacturing and battery assembly is no longer optional but a survival requirement for the grid.
Global Trade: India as an Export Hub
India’s role as a global supplier solidified in 2025. According to the Department of Commerce, India exported solar cells and modules worth over $344.5 million (~₹30 billion) in Q3 2025 alone—a 65.2% year-over-year increase (Mercom India, 2025).
The U.S. remains the primary destination, accounting for 97% of these exports. However, Indian manufacturers are increasingly looking toward the Middle East (UAE, Saudi Arabia) and Southeast Asia. The focus for 2026 will be on securing “Domestic Content Requirement” (DCR) status in global markets, which can fetch margins two to three times higher than domestic utility sales (IBEF, 2025).
Solex Energy: A Strategic Outlook for 2026
As an active contributor to this manufacturing evolution, Solex Energy views 2025 as the period that validated India’s industrial capability. Looking toward 2026, our perspective on the industry’s growth is centred on three core strategic pillars:
- R&D-First Innovation: We believe the “volume game” is over. The next phase belongs to manufacturers who invest in N-type technologies and next-generation cell architectures. At Solex, our strategic intent is to move beyond assembly and lead in technological excellence, ensuring Indian-made modules meet the gold standard for global efficiency.
- Vertical Integration & Supply Security: The introduction of ALMM List II (for cells) in July 2026 will lead to a temporary supply shortage. We will be very active in the domestic cell ecosystem to make sure that Indian developers get quality cells that are made locally and that they do not have to depend on unstable international markets.
- Solar + Storage Synergy: Solar power is only as good as its availability. Solex Energy is aligning its roadmap with the national BESS mandate, advocating for integrated solutions that pair high-efficiency modules with smart storage. Our goal is to provide a stable, 24/7 green grid that supports India’s mission of 500 GW of non-fossil capacity by 2030.
The year 2026 is not just a year of challenges—such as WTO litigation risks or cell shortages—but as a year of immense opportunity for integrated players who prioritise quality and sustainability.
Conclusion
The journey of 2025 has firmly positioned India as a manufacturing powerhouse. The public-private partnership in 2026 should concentrate on upstreaming, making our own polysilicon and wafers for real 100% localization.
India is not only following a target; it is changing the entire way energy is produced, stored, and traded. The country, supported by the interplay of forward-looking policies and the dedication of industry players like Solex Energy, is thus becoming a leader of the global green transition.
