India adds 44.2 GW of solar module capacity in H1CY25, notes Mercom report
- September 30, 2025
India added 44.2 GW of new solar module and 7.5 GW of solar cell manufacturing capacity in the first half (January to June) of 2025, a new report from Mercom India said.
The newly-released research report “State of Solar PV Manufacturing in India 1H 2025” said that manufacturing capacity additions in 1H 2025 were primarily driven by the 186 GW large-scale solar project pipeline scheduled between 2025 and 2027, the 2030 solar installation targets, and strong policy-driven domestic demand for ALMM modules.
Module shortages to persist
“Although companies have announced large manufacturing capacities, actual operational capacities can be 30 per cent to 40 per cent lower. New module lines typically take several months to stabilize before reaching full utilization while smaller facilities continue to operate at lower levels, constrained by outdated technologies, lack of scale, and lower-wattage modules that are no longer in demand. This has led to fewer orders and accelerated consolidation, where only larger manufacturers with scale, efficiency, and credibility remain competitive. DCR module shortages will persist until domestic cell capacity increases,” commented Raj Prabhu, CEO at Mercom Capital Group.
Gujarat leads
Gujarat stood out as the preferred destination for module manufacturing production, accounting for 41.6% of capacity as of June 2025. Rajasthan and Uttar Pradesh followed with module production capacities of 12.8 GW and 11.5 GW.
Solar equipment imports
A total of 44.6 GW of solar modules and cells were imported in H1CY25. Modules accounted for 34 per cent of imports, while cells accounted for 66 per cent, according to Mercom India.
Also read: India adds 10 GW of solar capacity in CY2021, says Mercom
(Note: H1CY25 refers to the first half of calendar year 2025, and covers the period from January 1, 2025 to June 30, 2025)