India's solar manufacturing boom: Factories outnumber actual demand
India's solar manufacturing has exploded—capacity is now 13 times higher than in 2020 and nearly triple what the country actually needs.
This rapid growth happened as India tried to rely less on China and ramped up local production after the pandemic.
But with so many new factories, only about 40% of their capacity is being used, down from over 70%, according to Avinash Hiranandani at RenewSys India.
Challenges for India's solar industry
Even with all this new manufacturing muscle, India still depends on China for key parts like solar cells.
Exporting isn't easy either, thanks to US tariffs and trade investigations.
Plus, many modules use MonoPERC cells that are fast becoming obsolete, meaning only bigger companies can afford costly upgrades—making things tough for smaller players trying to compete.