India Needs Solar Manufacturing Incentives amid China Export Curbs
POWER & RENEWABLE ENERGY

India Needs Solar Manufacturing Incentives amid China Export Curbs

India needs stronger incentives for domestic solar equipment manufacturing as China considers restricting exports of 12 technologies used in photovoltaic module production, according to Chetan Shah, Chairman and Managing Director of Solex Energy. The proposed restrictions are linked to technologies also used in aerospace, defence and other sensitive sectors.

Shah said China controls an estimated 75 to 90 per cent of the global solar supply chain. He cautioned that delays in establishing domestic cell capacity could create a supply crunch for modules, delay renewable energy projects and increase pressure on tariffs.

India had about 262 GW of module manufacturing capacity and approximately 37 GW of cell manufacturing capacity as of June 2026, Shah said. In contrast, the country’s ingot-wafer capacity was estimated at 2 GW, while it had no polysilicon manufacturing capacity. He also noted that much of the installed module capacity uses older mono PERC technology and that several facilities are not operational.

Shah called for the government to extend the timeline of the Approved List of Models and Manufacturers-II, or ALMM-II, by at least 12 months and apply it to all types of solar projects. The framework requires developers to source domestically produced cells from manufacturers on an approved list. An extension, he said, would give local companies time to fulfil existing orders while setting up additional cell capacity.

He also recommended a dedicated mission for solar equipment manufacturing, supported by a production-linked incentive (PLI) programme or capital subsidy for critical photovoltaic equipment, spares and consumables. Partnerships with Indian capital-goods companies, CSIR laboratories and IITs could support this effort. Shah further urged the government to work with the US, European Union, Japan, South Korea and Taiwan to secure alternative equipment and process technologies, while engaging China to protect contracted orders already under execution.

India needs stronger incentives for domestic solar equipment manufacturing as China considers restricting exports of 12 technologies used in photovoltaic module production, according to Chetan Shah, Chairman and Managing Director of Solex Energy. The proposed restrictions are linked to technologies also used in aerospace, defence and other sensitive sectors. Shah said China controls an estimated 75 to 90 per cent of the global solar supply chain. He cautioned that delays in establishing domestic cell capacity could create a supply crunch for modules, delay renewable energy projects and increase pressure on tariffs. India had about 262 GW of module manufacturing capacity and approximately 37 GW of cell manufacturing capacity as of June 2026, Shah said. In contrast, the country’s ingot-wafer capacity was estimated at 2 GW, while it had no polysilicon manufacturing capacity. He also noted that much of the installed module capacity uses older mono PERC technology and that several facilities are not operational. Shah called for the government to extend the timeline of the Approved List of Models and Manufacturers-II, or ALMM-II, by at least 12 months and apply it to all types of solar projects. The framework requires developers to source domestically produced cells from manufacturers on an approved list. An extension, he said, would give local companies time to fulfil existing orders while setting up additional cell capacity. He also recommended a dedicated mission for solar equipment manufacturing, supported by a production-linked incentive (PLI) programme or capital subsidy for critical photovoltaic equipment, spares and consumables. Partnerships with Indian capital-goods companies, CSIR laboratories and IITs could support this effort. Shah further urged the government to work with the US, European Union, Japan, South Korea and Taiwan to secure alternative equipment and process technologies, while engaging China to protect contracted orders already under execution.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Seco Marks 30 Years in India, Strengthens Pune Operations Wins Rs 8.39 Billion Vande Bharat Sleeper Orders

"Wabtec Corporation (NYSE: WAB) has secured orders worth approximately US$94 million (Rs 8.39 billion, or Rs 8,390 million) from Indian Railways for systems for the Vande Bharat Sleeper programme. The equipment is intended to increase service availability, simplify maintenance and improve passenger safety.Wabtec will supply onboard brake systems, doors and gangway solutions. Its scope also includes system delivery, integration support, testing, commissioning and long-term operational reliability support.Pascal Schweitzer, President, Wabtec Transit, said the orders reflect the company’s commi..

Next Story
Real Estate

Godrej Properties Targets Rs. 415 bn Sales Bookings by FY27

Godrej Properties is projected to achieve sales bookings of Rs. 415 bn in FY27, representing 22 per cent growth and exceeding its guidance of Rs. 390 bn. The company attributed the outlook to sustained consumer demand for residential projects across all its markets. Chairperson Pirojsha Godrej said the company remained on track to meet or exceed its annual targets for sales bookings, project launches, customer collections, project deliveries and land acquisition. Sales bookings in the first half of the financial year rose 7 per cent to Rs. 166.59 bn from Rs. 155.87 bn in the year-ago period. T..

Next Story
Infrastructure Urban

RPS Infrastructure Appoints KBE for Rs. 4.5 bn 12th Avenue Phase 3

Faridabad-based real estate developer RPS Infrastructure has awarded a construction contract worth more than Rs. 4.5 bn to KBE-Krishna Buildestates for Phase 3 of its flagship mixed-use development, RPS 12th Avenue. Spread across approximately 9 acres, the phase will include the Crosswalk mall and The Wisterias South, a residential development comprising three ultra-luxury towers. Phase 3 forms part of the wider 34-acre RPS 12th Avenue ecosystem on Main Mathura Road in Sector 27C, Faridabad. KBE will lead construction of the new phase, with the architectural blueprint already completed by glob..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code