Solar Manufacturing: Powering India's Vision of Viksit Bharat

In the march towards Viksit Bharat, the solar manufacturing ecosystem is at a critical threshold. India is evolving rapidly, and the country has a strong focus on transforming its energy sector into a self-reliant one. It would entail developing a robust and diverse energy mix, while keeping a check on imports and building end-to-end domestic capabilities. A solid example of it is the way solar module manufacturing capacity has expanded over the past decade to now exceeding 121 GW in November 2025, further boosting India’s run towards meeting RE targets ahead of schedule.

Undoubtedly, India’s solar surge is the result of the strategic rollout of various flagship initiatives targeting specific stakeholders - strengthening local supply chains, bringing innovative financing options and project tenders, improving local skill-set and empowering communities. Additionally, this growth is a ripple effect of deliberate policies and bold investments by Indian energy players who understood the importance of developing the entire solar value chain in-house.

Talking about solar cell manufacturing, we are already developing advanced solar cells, we should also start preparing ourselves for what comes next in solar cell technology and new architectures that will improve efficiency, directly translating to lower cost per megawatt and higher margins. But what’s causing this trend, and is it sustainable?

The supply glut and innovation

Solar manufacturing is facing significant pressure due to a global supply glut, which has created an environment of low panel prices and stockpiling, continuously shrinking profit margins, and driving intense price competition. This oversupply situation is expected to lead to industry consolidation, increasing pressure on manufacturers due to unsustainable margins. At the same time, manufacturers are driven towards efficiency improvements to enhance output per module.

Research and development (R&D) innovation is crucial in this environment, focusing on advanced materials, AI-enabled production techniques, and new cell technologies such as XBC Tandem to boost efficiency. These developments help lower costs, improve panel performance, and make solar power more competitive against fossil fuels. Despite the supply glut, R&D continues to be a key driver in increasing the sustainability and cost-effectiveness of solar manufacturing globally.

Where do we stand?

India’s solar manufacturing is well established, but it competes on price and scale. Modern solar manufacturing plants have integrated real-time data systems, AI-driven quality control, MES, and predictive maintenance, making every single module traceable. This has resulted in faster learning loops, efficiency, and a reduction in cost per watt.

But we are not cost leaders yet. Chinese and SEA manufacturers have expanded more quickly and have lower costs per watt. However, three factors could give India the advantage and these include owning the vertical integration, adapting advanced digital capability, and preparing for next-generation technology.

From polysilicon and wafers through cells into modules and inverters, backward integration is a supply-chain strategy, but that is how India is powering industrial sovereignty.​ Companies that build integrated cells, modules, and upstream capacity today will own the profit pools of the 2030s.​

The economic case is clear: integrated manufacturers can hit 20-25% lower cost per watt than non-integrated peers within 3-5 years. They secure supply, control technology decisions, and build data loops that drive continuous improvement.

Future of India’s solar journey

India is at a turning point. We have the resources, the ability, and the support of policymakers to create a strong solar manufacturing ecosystem. Despite persistent issues of grid integration and tariff-related export issues, India’s solar market is expected to continue expanding, becoming a major driver of clean energy growth, economic development, and green job creation. The journey ahead will be interesting as India marches towards achieving a diverse and sustainable energy mix, a robust energy supply chain, and technology independence in the spirit of Viksit Bharat.

About the Author:

Laxit Awla is the Executive Director and CEO of SAEL Industries Limited, a leading Indian renewable energy company focused on waste-to-energy and solar power solutions. Under his leadership, SAEL has significantly scaled its clean energy operations, including a ₹5,000 crore investment plan to set up a 5 GW solar cell manufacturing facility in Uttar Pradesh. Laxit's strategic direction has helped SAEL emerge as a key player in India’s renewable energy sector, with the company securing major solar power projects and expanding its national footprint.