India's Solar Manufacturing Surge Faces Cell Supply
India added 50.6GW of solar module and 9.7GW of cell capacity in H1 2026, but a critical shortage of domestic cells is slowing production and project
India added 50.6GW of solar module manufacturing capacity and 9.7GW of solar cell manufacturing capacity in the first half of 2026. Mercom India said: "India added 50.6GW of solar module manufacturing capacity and 9.7GW of solar cell manufacturing capacity in the first half of 2026". Cumulative module capacity reached 261.7 GW by June, while cell capacity stood at 36.6 GW. The new capacity is dominated by TOPCon technology, which accounted for 80% of total ALMM-listed module capacity.
Other technologies held smaller shares of the ALMM-listed module capacity as of June 2026.
| Technology | Share of ALMM-Listed Capacity |
|---|---|
| TOPCon | 80% |
| Monocrystalline PERC/TOPCon | 11% |
| Mono PERC | 4% |
| Heterojunction (HJT) | 3% |
| Thin-Film | 2% |
Regional Manufacturing Hubs
Gujarat leads India's solar manufacturing landscape, accounting for nearly half of cumulative capacity and the largest annual cell production share. The state held nearly 45% of India’s cumulative solar module manufacturing capacity and 36% of its cell manufacturing capacity as of June 2026. It also held the largest annual solar cell production capacity share at 37%.
Other significant manufacturing states include Rajasthan, with 26.1GW of module capacity, and Tamil Nadu, with 23.4GW of module capacity and 4.3GW of cell capacity. Telangana had 4.2GW of cell production capacity. The top ten manufacturers accounted for 60% of the country's total module manufacturing capacity.
Supply Chain Constraints
Critical cell supply shortages are slowing module production and project commissioning despite rapid capacity expansion. Domestic cell shortages are described as the biggest near-term challenge for India’s solar market. Module capacity has expanded rapidly but cell supply has not kept pace.
Many module manufacturers are struggling to maintain production due to limited domestic cell availability. This is tightening supply and pushing up prices for compliant modules. Project activity is sharply slowing due to these cell supply constraints. Installed cell capacity overstates actual availability as new production lines take months to reach stable commercial output.
The ALMM List-II has intensified pressure by increasing dependence on domestic cell supply before enough capacity was commercially available. Until commercially available cell supply catches up with demand, the industry will remain under pressure. Manufacturers face production constraints and developers face commissioning delays.
Policy and Market Pressures
US anti-dumping duties and import growth highlight external market challenges compounding domestic supply issues. The US accounted for 92% of India’s total solar cell and module exports in the first half of 2026. Meanwhile, India’s solar cell and module imports increased 18% in H1 2026 compared to H1 2025.
Cells accounted for 81% of India’s total solar imports in that period, with modules making up the remaining 19%. In a significant trade development, the US Department of Commerce announced final anti-dumping and countervailing duties on crystalline silicon PV cells from India. The combined duty rate is 249.13%, comprising a 123.04% final dumping margin and a 126.09% countervailing duty.
Despite these manufacturing and trade headwinds, domestic installation growth remains robust. India installed 27GW of solar generation capacity in H1 2026. Mercom said: "India installed a record 27GW of solar generation capacity in 1H 2026, up 49% year on year from 18GW in H1 2025". This included a surge in Q1, with 15.3GW installed, up 143% year-on-year. Solar now accounts for 162GW, or 56%, of India's 288GW installed renewable generation capacity.
