India's Total PV Module Capacity To Reach 64.5GW By 2023

India produced 20.8GW of PV modules and 3.2GW of PV cells in 2023, according to a recent report titled India PV Manufacturing Report 2024, published by research firm Mercom India Research.

As of December 2023, India has cumulatively produced a total installed capacity of 64.5 GW of PV modules and 5.8 GW of PV cells. and of this capacity, about 60 percent of it is used to produce PV modules using M10 and G12 wafers.

Priya Sanjay, Managing Director of Mercom India Research, said: "As of January 2024, India has cumulatively produced 64.5GW of installed PV module capacity, but only 22.2GW of PV modules are ALMM List compliant. this suggests that the majority of PV modules produced in India are not available to the PV projects that are authorized to use ALMM-listed PV modules."

Mercom India Research said that one of the factors contributing to the increase in PV module capacity is the growth in demand, with a large number of PV projects currently being built at scale in India. The study suggests that about 97.5GW of large-scale PV projects will be

developed in India between 2024 and 2026.

In addition, the launch of the Surya Ghar program by the Indian government aimed at installing rooftop PV systems for 10 million householders in the country, as well as the re-implementation of orders related to the ALMM list, will increase the demand for PV modules.

Moreover, the Indian commercial, industrial, and export markets are witnessing a growing trend with the increase in exports of PV modules. Whereas, the ban on PV modules produced in China and Southeast Asian countries has led to an increase in demand for Indian PV modules in the U.S. market, and there are potential opportunities in Europe and parts of Africa.

The report predicts that by 2026, India's PV module production capacity will exceed 150GW, and PV cell production capacity will exceed 75GW. however, the competitive price of PV modules produced in China remains an obstacle for Indian PV manufacturers.

The report points out that "there has been a significant gap between the capacity and operational capabilities of Indian PV module manufacturers and those of Chinese PV module manufacturers. One of the major challenges for Indian PV module manufacturers is the ability to manufacture PV modules within a given time frame. Most manufacturers can only deliver PV modules on a staggered basis. With the increase in capacity by 2026, manufacturers hope to address the challenge of delivering PV modules in bulk."

As of December 2023, monocrystalline PV module capacity accounted for 67.5 percent of India's PV module capacity. Polycrystalline PV modules follow at 15.1 percent. Tunnel oxide passivated contact (TOPCon) PV modules were 12.3 percent, while thin-film PV modules were 5.1 percent.

By the end of 2026, monocrystalline silicon PV module capacity is expected to account for 59.7 percent of India's annual PV module capacity and 50.5 percent of its annual PV cell capacity, followed by TOPCon, heterojunction (HJT) and other PV modules, the report noted.

As of December 2023, Gujarat is the leader in PV manufacturing in India, accounting for 46.1 percent of the country's PV module capacity. Rajasthan and Tamil Nadu rank second and third in terms of PV module products, accounting for 9.3 percent and 7.6 percent, respectively.

As of December 2023, Telangana leads India in terms of annual PV cell capacity, accounting for 39 percent of the country's PV cell capacity. Gujarat and Himachal Pradesh follow with 34.7 percent and 13.9 percent of their total capacity, respectively.

Gujarat's favorable manufacturing policies and investor incentives play a key role. In addition, the state has the lowest industrial tariffs in India. In addition, Gujarat benefits from demand from neighboring states such as Rajasthan, Madhya Pradesh, and Maharashtra.

The state and neighboring states have ample demand for PV modules for PV projects under development and in the pipeline, thus consolidating Gujarat's leading position in PV module manufacturing.

While Rajasthan, Tamil Nadu, Karnataka, Andhra Pradesh, Uttar Pradesh, and Maharashtra will witness a significant growth in PV module capacity.

Nonetheless, Gujarat is expected to maintain its leadership in PV module production capacity by 2026.

According to this report, in 2023, the Indian government and PV system developers issued tenders for a total of 9.7 GW of PV modules, a year-on-year increase of 275.6%.

India imported another record high of 16.2GW of installed PV module capacity, a significant increase of 158 percent compared to 10.3GW in 2022.

Indian PV module manufacturers exported 4.8GW of PV modules in 2023, a significant increase of 204 percent from 1.6GW in 2022.

In addition, India imported 15.6GW of PV cells in 2023, a 169 percent increase from 5.8GW in 2022. India's PV cell exports experienced phenomenal growth, reaching 286.3MW in 2023, a significant increase of 2,765 percent compared to 10MW in 2022.

As of December 2023, the country's top 10 PV module manufacturers accounted for 62 percent of India's total PV module capacity and 100 percent of its total PV cell capacity.