India's Solar Industry Booms, Targets 28.3GW Installations by 2026
The Indian solar industry is booming, with a massive expansion in manufacturing capacity. By 2027, it aims to have 86GW of solar cell and 182GW of module manufacturing capacity. Meanwhile, installations are expected to reach 28.3GW in 2026, highlighting a significant gap between production and usage.
Gujarat and Rajasthan are leading the way in installed utility-scale solar capacity, with substantial project pipelines. Gujarat alone accounts for 42% of operational module and nearly half of solar cell capacity. The Indian government has recently added 4.8GW of solar cell capacity to the Approved List of Models and Manufacturers (ALMM) List-II. By 2030, India plans to commission an additional 85GW of solar cell and 97GW of module manufacturing capacity.
In summer 2025, India's operational module capacity surpassed 100GW, with nearly half added in the first half of the year. Gujarat's new solar cell factories, backed by a $10 billion subsidy program and involving major Taiwanese companies, are set to significantly boost capacity. This includes a joint venture between Powerchip Semiconductor and Tata Electronics to build India’s first AI-powered chip factory. In total, India aims to have 171GW of solar cell and 279GW of annual module manufacturing capacity commissioned by 2030.
The Indian solar industry's rapid expansion in manufacturing capacity is set to make it a global leader. With significant government support and investment, India is on track to meet its ambitious renewable energy targets.
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