India's Solar Ambitions Hit by Cell Shortage

India is facing a critical shortage of solar cells, potentially derailing its ambitious clean energy projects. As of April 21, 2026, new rules scheduled for June will require the exclusive use of domestically produced solar cells. This mandate comes at a time when India's solar cell production capacity stands at approximately 25.6 GW, significantly less than the estimated demand of 50 GW.

Imports, predominantly from China, currently fulfill over 90% of India's solar cell requirements. While around 55% of solar cells are manufactured locally, these often utilize older technologies and are not suitable for most new projects. The situation could lead to increased module prices and project execution delays.

Industry groups have urged the government to consider a phased rollout of the mandate, suggesting a nine-month extension from June. This would allow for the integration of nearly 50 GW of solar cell capacity currently under construction to become operational. Without such adjustments, the mandate could adversely impact India's renewable energy targets and its commitment to achieving net-zero emissions by 2070.