Solar module capacity to jump 50% by FY27: Study

INDIA'S SOLAR PHOTOVOLTAIC (PV) module manufacturing capacity is expected to increase to over 165 gigawatt (GW) by March 2027 from around 109 GWat present, according to Icra.

- ARUNIMA BHARADWAJ

The growth will be led by strong policy support in the form of the approved list of models and manufacturers (ALMM), which effectively barred the direct import of modules, along with the imposition of basic customs duty on imported cells & modules, and the production-linked incentive (PLI) scheme.

The implementation of ALMM List-II for solar PV cells from June 2026 has spurred the ongoing expansion of cell manufacturing capacity by module original equipment manufacturers (OEMs) in India, which is likely to increase to about 100 GW by December 2027 from 17.9 GW currently under ALMM, Icra said.

However, expected overcapacity of modules in the domestic market due to imposition of US tariffs is likely to result in a consolidation of the smaller or pureplay module players.