REconnect Lucknow: Scaling Solar PV Manufacturing Crucial for India’s Green Growth, Assert Experts
At the REconnect Summit 2025 in Lucknow, panellists discussed India’s current solar manufacturing landscape, challenges and opportunities, export potential and boosting domestic manufacturing through government policies and incentives and India’s road to energy transition and meeting ESG goals.
March 21, 2025. By Mrinmoy Dey
Solar energy has emerged as a major contributor in India's transition to renewable energy and holds the key for achieving the 500 GW by 2030 target. Part of this journey involves strengthening our domestic cell and module manufacturing sector.
To discuss the opportunities in domestic solar module and cell manufacturing, challenges, policy support and the path forward, the third edition of REconnect Summit, organised by Energetica India magazine in Lucknow, witnessed the participation of the leading business leaders and top executives from the industry.
The first panel discussion was on ‘Domestic Solar PV Manufacturing’. The panellists discussed boosting local solar manufacturing, export potential, investment opportunities in Uttar Pradesh, government incentives, and public-private collaboration for PV innovation.
Giving a background on where India stands in terms of RE capacity, the moderator of the session, Dr. Sathish Suri, Managing Director, GreenPath Energy & Sustainability Services, Hyderabad said, “India currently has around 220 GW of renewable energy capacity, with a target to reach 500 GW by 2030. This means we need to add approximately 50-60 GW annually. However, our current energy mix is still heavily dependent on coal at around 50 percent, while renewables, including wind energy, account for only 30 percent. The remaining 20 percent is divided between oil, gas, and other sources.”
He further asserted that the challenge of reaching 500 GW is significant but not insurmountable. “The key lies in industry initiatives, government policies, and investor confidence. One of the major areas of concern is the module and cell defect rate. In India, it's around 6-8 percent, whereas in China, it is only 2-2.5 percent. This presents an opportunity for quality improvement,” asserted Suri.
China has already achieved 600 GW of module and cell manufacturing, while India is at around 65-70 GW for modules and 27 GW for cells. This gap signifies an opportunity for growth, said Suri.
Talking about the policy paradigm and current investment ecosystem, Hemant Arora, Director, Energetica India Magazine added, “The government is actively supporting the renewable sector with policies like the PLI scheme and investment incentives. A few years ago, cell manufacturing in India seemed unlikely, but now multiple players have entered the space. Compared to Germany, which was leading in solar energy three to four years ago, India is now competing closely.”
He further added that Uttar Pradesh, in particular, has emerged as a key player, with plans to contribute 30-40 percent to India’s renewable energy goals. The state’s policies are attracting major investments in solar manufacturing.
Uttar Pradesh is the first state to implement a clear and transparent C&I policy. They have also announced a scheme offering INR 15,000 per kW per connection, in addition to central government incentives. “This is a game-changer. They have identified 20 cities, each aiming to install 10 lakh independent rooftop solar connections. This kind of policy implementation is what other states should follow,” remarked Suri.
Additionally, Uttar Pradesh aims to set up 20 GW of module manufacturing and 2 GW of cell manufacturing by 2027. This is a major step towards reducing import dependency. “However, research and development remain a weak point in the solar sector. Over the last decade, panel efficiency has only improved from 18-19 percent to around 21-21.5 percent. This needs attention,” emphasised Suri.
Abhijeet Sinha, Technocrat - Ease of Doing Business Program Director - NHEV - National Highways for EV, President - CPOs of India and Ex-CAG Member said, “Innovation is not just about technology; it’s also about financial models and policy implementation. India has lagged in R&D investment due to historical factors. Unlike other countries that prioritise research, India’s industrial and academic sectors have not significantly contributed to technological advancements.”
He further highlighted the need for a fundamental shift in mindset. “We must invest in research institutions and recognise that India can be a global leader in solar technology. Policy support, funding, and industry participation in R&D will be crucial,” emphasised Sinha.
Virali Shah, Sr. Manager Sales and Marketing, WAA Cables Pvt. Ltd. remarked, “Passive infrastructure, such as cables and transformers, is just as important as active infrastructure like panels and modules. Research in this area will significantly impact energy efficiency and system longevity. We emphasise using high-quality thin copper conductors to ensure durability and efficiency, especially during monsoon seasons. Customisation of cables for various environments is also essential.”
Talking about domestic market and export potential she added, “Market competition is intense. While there are high-quality products available, many consumers still prefer cheaper, lower-quality alternatives. Additionally, certification compliance is crucial for global expansion. If we focus on adhering to international standards and providing customised solutions, Indian exports can gain a stronger foothold.”
Talking about export potential is various solar manufacturing components, Arora stated, “The solar industry is growing exponentially, benefiting both domestic and international markets. In the past two years, India has significantly increased solar module exports, and now we're expanding into inverters and BOS systems, with solar cell manufacturing on the horizon.”
He further added, “With initiatives like PM Surya Ghar Yojana, we're addressing domestic demand while also strengthening our global presence, particularly in Europe, the US, Australia, and the Middle East. Indian companies are setting up offices worldwide, and in the next 2-3 years, exports from India in the renewable energy market will see substantial growth.”
However, India faces challenges in module and cell manufacturing, primarily due to reliance on imported raw materials like silicon wafers and ingots. “With new silicon wafer plants in Gujarat and Hosur, we're making some progress. Additionally, there is a 26-28 percent skilled manpower gap in renewable energy, which the National Skill Development Corporation is addressing. Quality improvements, technical competency, and reducing defect rates will be crucial for India's renewable energy sector to thrive,” remarked Suri.
Talking about India’s energy transition and the ESG goal Sinha added, “India has always been a knowledge economy, not just a labour economy. We must rediscover our strengths and question what has been imposed upon us. ESG and sustainability were embedded in our culture for thousands of years, long before Western concepts emerged. Ancient Indian texts like the Arthashastra outlined environmental responsibility. Instead of blindly adopting external ESG frameworks, we must develop our own path to sustainability, leveraging our rich heritage of environmental consciousness and self-reliance.”
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