India’s solar manufacturing sector saw significant growth in the 1st half of 2025, with PV module production capacity rising by 44.2 GW and cell capacity by 7.5 GW, according to a new Mercom India Research report. The total capacity listed under the Approved List of Models and Manufacturers (ALMM) List-I and List-II has now reached 109.5 GW for modules and nearly 17.9 GW for cells, respectively.  

Despite the huge PV production capacity, actual operational capacities can be 30% to 40% lower, according to Mercom Capital Group CEO Raj Prabhu. He believes that ALMM-certified capacities provide a more accurate reflection of supply, even though wattage breakdown is not specified. 

As of June 2025, there was 91.5 GW of module manufacturing capacity across various technologies and wattages with ALMM certification, and 13.5 GW of cell capacity was listed under ALMM List-II out of all installed cell production capacity.  

“New module lines typically take several months to stabilize before reaching full utilization, while smaller facilities continue to operate at lower levels, constrained by outdated technologies, lack of scale, and lower wattage modules that are no longer in demand,” explains Prabhu.  

He adds, “This has led to fewer orders and accelerated consolidation with only larger manufacturers that possess scale, efficiency and credibility remaining competitive.” 

Nevertheless, the H1 increase in manufacturing capacity is driven by strong demand from the large-scale project pipeline totaling 186 GW planned between 2025 and 2027. Mercom also notes that India’s 2030 solar targets and government policies encouraging ALMM-compliant solar modules are contributing factors, even as solar module procurement tenders issued by various public and government entities declined by 88.7% year-on-year (YoY) with 860 MW. 

The top 10 manufacturers in the country accounted for 49.9% of solar module and 99.2% of solar cell production as of June 2025. Over 90% of new module manufacturing capacity additions were driven by TOPCon technology. Monocrystalline modules accounted for almost 7%. For the 1st time, heterojunction (HJT) module capacity was added in the country with a share of nearly 3%, while no additions were reported for integrated solar wafer/ingot or polysilicon production capacities. 

On an overall basis, as of June 2025, Mercom says monocrystalline technology accounted for 54.5% of total solar cell production capacity, followed by TOPCon’s 41.5% share, and 4% for polycrystalline technology. 

Gujarat accounted for 41.6% of the country’s total module production capacity, followed by 12.8 GW in Rajasthan and 11.5 GW in Uttar Pradesh. As for cells, Gujarat held a 47.3% share in total annual solar cell production capacity, with Tamil Nadu (4.3 GW) and Karnataka (3.6 GW) next in line. 

As India’s solar manufacturing capacity expands, module imports continue to decline. During the reporting period, India imported 44.6 GW of solar modules and cells, with the former accounting for 34% and the latter 66%, according to the Mercom report.  

“Exports have also been hit hard. Shipments to the United States, which accounted for more than 95% of Indian module exports, have come to a halt after the recent 50 tariff,” added Prabhu. According to Mercom analysts, Indian companies exported nearly 3 GW of modules and 83 MW of solar cells in H1 2025.  

Going forward, Mercom India’s Managing Director, Priya Sanjay, expects a supply crunch for solar cells in the Indian market as ALMM List-II comes into force from June 1, 2026, but the industry is waiting to see if the compliance timeline is extended (see India To Impose ALMM For Solar Cells From June 1, 2026).  

“Demand for cells will spike by June 2026, but most new cell capacities won't be ready within the next few quarters. Some manufacturing lines are expected to come online by mid-2026, but a temporary supply crunch is likely to persist until additional capacity is commissioned,” added Sanjay. Mercom also expects domestic content requirement (DCR) module shortages to persist until domestic cell capacity increases.  

The complete Mercom report titled State of Solar PV Manufacturing in India 1H 2025 can be purchased from its website.