Why is India's solar industry expecting consolidation?

Overcapacity and rapid technological changes are squeezing smaller players, forcing consolidation in India's solar module manufacturing sector.

What new technologies are impacting Indian solar module production?

ToPCon and bifacial modules are key technologies requiring adaptation, with only a portion of current Indian capacity able to integrate them.

How will India's government policies affect solar manufacturers?

The government's push for backward integration into wafer and ingot production by 2028 aims to reduce import dependency and adds pressure on manufacturers.

Home / Business and Economy / India's Solar Industry Faces Shakeout

India's Solar Industry Faces Shakeout

20 Nov

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Summary

Overcapacity and tech shifts will consolidate India's solar module sector.
Only 75% of current module capacity can adapt to new technologies.
Government mandate to integrate wafer production adds pressure.

India's solar module manufacturing sector is bracing for significant consolidation in the coming three to five years. Analysts predict that overcapacity, stemming from a production capacity expected to reach 165 GW against projected installations of 45-50 GW, will be a primary driver. This imbalance, alongside rapid technological advancements, is creating immense pressure on smaller companies.

Only an estimated 70-75% of the country's authorized module capacity can effectively adapt to newer technologies such as ToPCon and bifacial modules, which offer improved efficiency. Manufacturers require substantial scale and integrated value chains, demanding significant capital and technological investment. This reality means not all current players will be able to sustain operations, making consolidation inevitable.

Further complicating the landscape, the Indian government aims to reduce reliance on Chinese imports by pushing cell makers into backward integration for wafer and ingot production by 2028. This, coupled with global oversupply and falling module prices, intensifies the need for strategic investment and operational efficiency for Indian solar manufacturers to thrive.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.