Mumbai, 6 November (IANS). India’s solar photovoltaic module manufacturing capacity is expected to increase to more than 165 GW by March 2027, from about 109 GW at present. This information was given in a report released on Thursday.
Rating agency ICRA’s report said strong government support in the form of Approved List of Models and Manufacturers (ALMM), basic custom duty on imported cells and modules and production-linked incentive scheme have led to rapid expansion of solar photovoltaic module manufacturing capacity.
According to the report, annual solar capacity addition in the country is expected to be between 45-50 GW, while annual module production is expected to be between 60-65 GW. This will lead to supply surpluses in the times to come and will encourage consolidation among smaller and pure-play module companies.
In ALMM List-2, companies have been proposed to increase the manufacturing capacity of SAIL to about 100 GW by December 2027, which is currently 17.9 GW.
According to the report, due to the recently imposed US tariffs, the supplies going to the export market have shifted towards the domestic markets.
The report predicted that suppliers practicing vertical integration will have more control over the supply chain in the long term.
ICRA Vice President and Co-Group Head (Corporate Ratings) Ankit Jain said domestic solar OEM profits are likely to decline by 25 per cent in FY25 due to competitive pressures and excessive capacity creation.
He further said that the ALMM requirement for solar cells is effective from June 2026, so strong growth in cell manufacturing capacity and its stabilization over time will remain important in the near future.
–IANS
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