The solar revolution in India has shifted from being just an installation story to a powerful manufacturing growth narrative. With robust government policies, strong private investments, and a strategic focus on reducing import dependence, India is rapidly transforming into a solar manufacturing powerhouse. This shift doesn’t just help local industry — it strengthens national energy security, deepens economic resilience, and supports climate goals.
In this blog, we break down the key forces behind the domestic solar manufacturing boom and why India is steadily moving toward solar self-reliance.
1. The Role of the Production Linked Incentive (PLI) Scheme
One of the biggest catalysts for India’s solar manufacturing surge has been the Production Linked Incentive (PLI) Scheme introduced by the Ministry of New and Renewable Energy (MNRE). Under this programme, solar PV manufacturers receive incentives based on their production output of high-efficiency modules.
Here’s how the PLI Scheme is reshaping the solar industry:
- Encourages companies to set up large-scale manufacturing plants in India
- Brings advanced technology and quality standards to domestic production
- Helps India build Giga-Watt (GW)-scale solar PV manufacturing capacity
- Drives employment creation and local economic growth
So far, the PLI scheme has issued Letters of Award for tens of GW worth of solar module manufacturing capacity — significantly speeding up India’s ability to produce solar panels domestically.
This support helps Indian manufacturers compete with global players and reduces dependence on imports, particularly for crucial components like solar modules, cells, and ingots.
2. Solar Manufacturing Capacity Explosion Under ALMM
Another key policy that’s influencing India’s solar manufacturing boom is the Approved List of Models and Manufacturers (ALMM). This government-maintained list defines which solar modules and manufacturers are eligible for use in government-supported projects and incentives.
The impact has been remarkable:
- India’s solar module manufacturing capacity across ALMM list has been estimated in the hundreds of gigawatts — a significant jump from just a few gigawatts a few years ago.
- Solar cell production capacity has also expanded rapidly, with domestic production units now capable of manufacturing large quantities of cells for panels.
This growth means solar panels and components are increasingly “made in India,” bolstering the country’s manufacturing credentials and reducing the solar industry’s reliance on imported goods.
3. Job Creation and Economic Impact
The domestic solar manufacturing push isn’t just about numbers — it’s also about jobs and livelihoods.
According to government data presented in Parliament, the PLI scheme has already helped create tens of thousands of jobs across multiple states, including Gujarat, Tamil Nadu, Andhra Pradesh, and more.
This includes jobs in manufacturing plants, skilled assembly roles, logistics, and support services. By generating employment in both urban and semi-urban regions, solar manufacturing is contributing to inclusive economic growth.
4. Reducing Import Dependence and Strengthening the Supply Chain
Historically, India imported a large share of its solar hardware — particularly from East Asian markets. But with strong policy support, this trend is shifting:
- Solar module imports have declined in recent years as domestic production scales up.
- Manufacturing investments now cover not just modules but also upstream components like cells and ingots, improving supply-chain depth.
This is important because India’s long-term energy strategy depends on building a resilient and self-sufficient supply chain that can withstand external shocks, trade disruptions, and global price volatility.
5. Future Outlook — Towards Global Competitiveness
While domestic solar manufacturing has expanded rapidly, India’s future growth is geared toward greater competitiveness and technology adoption.
Analysts predict that India’s solar manufacturing capacity could grow even further in the coming years, potentially making the country a major global exporter of solar modules and components.
India’s focus on next-generation manufacturing, quality standards, and vertically integrated production chains — from wafers to finished modules — makes it well-positioned for global competition.
Key Takeaways
✔ The PLI Scheme is a cornerstone policy driving India’s solar manufacturing transformation.
✔ The ALMM framework ensures that quality domestic products are prioritized in solar projects nationwide.
✔ Job creation and economic benefits are significant outcomes of the manufacturing boom.
✔ India’s solar manufacturing ecosystem is reducing reliance on imports and strengthening supply-chain autonomy.
✔ Long-term growth could position India as a global solar manufacturing hub.
Conclusion
India is not just installing solar panels — it’s building them. The domestic solar manufacturing boom, powered by strategic government policies like the PLI scheme and ALMM framework, is transforming the country into a self-reliant clean energy leader.
As the world shifts to low-carbon energy sources, India’s emphasis on deepening domestic manufacturing will not only strengthen the renewable energy landscape at home but also position the nation as a competitive player in the global solar market.
At Australian Premium Solar (APS), we are proud to be one of India’s leading solar panel manufacturers, contributing directly to the country’s domestic solar manufacturing boom. By producing high-quality, reliable solar panels locally, we help Indian households, businesses, and industries harness clean energy while supporting India’s vision of energy self-reliance. Our focus on innovation, quality, and sustainability ensures that every APS solar panel delivers long-term performance and helps build a greener, more self-sufficient India.
