India Targets Fully Indigenous Solar Manufacturing Chain
India Target for Complete Indigenous Solar Manufacturing Chain by 2028

Industry News

India Target for Complete Indigenous Solar Manufacturing Chain by 2028

Updated on Sep 12, 2025, 04:39 PM IST
Written & Edited by Parvathy S

Union Minister for New and Renewable Energy Pralhad Joshi announced that India is targeting the achievement of indigenous solar cell manufacturing by 2028, marking a significant expansion beyond current module production to include wafers and ingots. Speaking at the MNRE's State Review Meeting on Renewable Energy, Joshi outlined plans to establish a complete domestic solar manufacturing ecosystem within the country.

The Minister emphasized that India is now advancing beyond modules to develop domestic capacity for wafers and ingots, ensuring that the entire solar manufacturing value chain is established domestically. Current solar cell manufacturing capacity has crossed 30 GW, according to industry sources, while India now has 100 GW of module manufacturing capacity.

Economic Impact and Employment Generation

According to Joshi, the move towards complete indigenous solar manufacturing will reduce import dependence while generating employment, boosting investment, and strengthening India's position as a global leader in clean energy manufacturing. The PLI Scheme for High-Efficiency Solar PV Modules, with an outlay of INR 24,000 crore, has already resulted in INR 50,000 crore in investments and created over 12,600 direct jobs.

The Minister welcomed the recent GST reduction on renewable energy devices and services from 12% to 5%, which would make solar, wind, biogas, and waste-to-energy systems more affordable. He urged states to promote these technologies more actively following the tax reduction.

Progress in Government Solar Schemes

Joshi highlighted significant progress under key government solar initiatives. Nearly 20 lakh households have already benefited under the PM Surya Ghar Muft Bijli Yojana, with nearly half the beneficiaries receiving zero electricity bills. The Minister noted this demonstrates a model that combines relief for citizens with long-term sustainability. The PM-KUSUM scheme has gained strong momentum across states after initial reluctance, with demand for additional allocations from Chief Ministers.

Out of the 49 lakh solar pumps allocated under PM-KUSUM, over 16 lakh have already been installed or solarised. Joshi announced that the second phase of PM-KUSUM will be launched after the present phase ends in March 2026. Union Minister of State for New and Renewable Energy Shripad Naik described the PM-KUSUM Scheme as “a true game-changer for our farmers.”

Under the PM Surya Ghar Yojana (PMSGY), installations are happening at the rate of 4,500 systems per day, supported by over 18,000 vendors nationwide.

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Renewable Energy Capacity and Future Targets

India has crossed 251.5 GW of non-fossil capacity and achieved the milestone of 50% of installed electricity capacity from non-fossil fuel sources five years ahead of schedule. Secretary MNRE Santosh Kumar Sarangi stated that India's green energy transition is vital for achieving net zero by 2070, with targets of 1,800 GW of renewable capacity by 2047 and 5,000 GW by 2070.

Sarangi highlighted successful state practices, including Maharashtra's PM-KUSUM implementation, Gujarat's renewable clusters, and Karnataka's land facilitation efforts, as examples of effective renewable energy deployment.

Policy Recommendations and State Coordination

Joshi cautioned that capacity addition must be complemented by effective utilisation and urged states to expedite Renewable Purchase Obligations (RPOs), power purchase agreements (PPAs), and land allotments transparently. “Timely action is the backbone of this system. If we keep delaying procurement on the expectation that tariffs will fall further, we are missing the bigger picture,” the Minister stated.

The Minister called upon states to strengthen the Ease of Doing Business in the renewable sector by adopting single-window clearance systems, reducing compliance burdens, and resolving Right of Way and law-and-order issues faced by developers. He emphasized that investor confidence hinges on proactive facilitation by state governments. For wind energy development, Joshi specifically called upon wind-rich states to develop time-bound roadmaps for new site allocation and transmission readiness.

He urged states and DISCOMs to ensure strict quality compliance, finalise agreements without delay, and offer the best possible tariff credits to consumers for continued growth under solar schemes. Joshi stressed that India's energy transition will succeed only through collective action by the Centre, states, industry, and citizens. He assured full support from the MNRE and invited all stakeholders to share ideas for accelerating renewable energy growth.

On the issue of free electricity benefits, the Minister observed that such benefits must be delivered in a financially sustainable manner.

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