India's Solar Module Manufacturing Capacity May Reach 60 GW By 2025: Icra

(MENAFN- KNN India) New Delhi, Nov 7 (KNN) India's solar photovoltaic (PV) module manufacturing capacity expected to increase over 60 GW by 2025 from the current level of 37 GW, reported Icra.

The PV module manufacturing capacity is likely to increase due to improved backward integration into cell and wafer manufacturing.

The capacity is likely to further enhance to nearly 100 GW as the capacity awarded under the production-linked incentive (PLI) scheme comes on stream, led by the strong policy support and growing demand from domestic solar power installations, the report said.

The policy measures include the notification of Approved List of Models & Manufacturers (ALMM) comprising only domestic manufacturers, imposition of basic customs duty on imported cells and modules, and the PLI scheme.

Further, the solar power generation capacity is expected to witness significant growth over the coming decade on the back of India's climate transition goals, in turn driving the demand for solar PV module, according to the report.

Vikram V, vice president & sector head - corporate ratings, Icra said,“While the abeyance of the ALMM order till March 2024 and sharp decline in global module prices is leading to an increase in PV module imports in FY2024, the expected scale-up in domestic manufacturing capacity with backward integration over the next two to three years, along with resumption of the ALMM order, is expected to reduce import dependence.”

He said that apart from module capacity, the OEMs are expected to enhance the wafer and cell manufacturing capacities with cell capacity expected to cross 25 GW by 2025 from the current level of 6 GW.

“However, the country will remain dependent on polysilicon imports as these capacities are likely to take longer to set up, involving a larger capital investment,” Vikram added.

The solar PV module supply chain is currently dominated by China, with over 80 per cent share in manufacturing capacity across polysilicon, wafer, cell, and modules.

KNN Bureau

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