India’s solar industry is growing continuously, but experts say that this growth could create issues. The country is expected to produce over 125 GW of solar panels by 2025, even though the country needs only about 40 GW.
This situation may result in factories making more panels than consumers will purchase. This leads to excess stock and financial losses for companies. This growth arises because of the government’s PLI scheme, which motivated companies to establish more factories.
But now the situation has changed. The United States has put a 50% tax on imported solar panels, which caused India’s solar exports to the U.S. to drop by more than half in the first half of 2025. Because of this, many Indian companies have stopped their expansion plans in the U.S. and are now focusing only on the Indian market.
This shift is increasing pressure, because the Indian market alone cannot absorb all the modules being produced.
Another challenge is cost. Research firm Wood Mackenzie has noted that Indian-made modules are still more expensive than Chinese ones. Modules assembled in India using imported cells cost more per watt than imports from China, and fully “Made in India” modules can be nearly twice as costly without government support.
To protect local industry, the government is using measures like the Approved List of Models and Manufacturers (ALMM) and planning an anti-dumping duty on Chinese modules.
But experts say that India has a strong opportunity to become a major global supplier of solar equipment. In simple terms, India needs to find more customers and lower the prices of solar products. If not, this growth may not last.
Source
0 Comments