From 90% to 56%: India cuts China reliance on solar cells

India’s solar industry is on a high-growth trajectory, with imports of solar modules dropping 57% and 10 lakh homes already powered under the PM rooftop scheme. Backed by strong government incentives and rising domestic manufacturing, the country is steadily reducing its reliance on China and emerging as a key solar exporter.

India’s solar industry has undergone a significant transformation in recent years, driven by an expansion in domestic manufacturing capacity and proactive government policies. As the country works towards reducing its dependence on imports, its solar sector is steadily moving toward self-sufficiency in solar cell and module production.

According to estimates from Rubix, an analytics services provider, India’s imports of solar cells and modules have seen a notable decline, dropping by 20% and 57%, respectively, in the first eight months of 2024-25. A major factor behind this reduction is the sharp decrease in imports from China, which previously dominated the Indian market. In 2023-24, China’s share in India’s solar cell imports fell from over 90% to 56%, while its share in solar module imports declined to 65%. This shift highlights India’s growing capability in solar manufacturing and its efforts to diversify sourcing.

Several leading Indian companies are making strategic investments to scale up production and strengthen their positions in the solar market. TP Solar (Tata Power’s solar manufacturing arm), Reliance Industries, Waaree Energies, Vikram Solar, Gautam Solar, AdSolar, and Rene have all announced large-scale capacity expansions in the gigawatt range. “Additionally, the Indian Government’s policy shifts are encouraging local production,” Rubix highlighted. Support under the Production-Linked Incentive (PLI) scheme is further expected to accelerate domestic manufacturing by providing financial incentives to companies investing in solar cell and module production.

The government is also taking steps to boost solar adoption at the consumer level. To accelerate rooftop solar installation across households, the government launched PM Surya Ghar: Muft Bijli Yojana (PMSGMBY)—the world’s largest domestic rooftop solar initiative—in February 2024. As of March 10, 2025, the scheme has successfully powered 10 lakh homes with solar energy. Under this initiative, households receive subsidies ranging from Rs 30,000 to Rs 78,000, depending on their electricity consumption and system capacity. By prioritizing the use of “Made in India” solar components, the program not only promotes clean energy adoption but also strengthens domestic solar manufacturing, reinforcing India’s commitment to energy self-sufficiency.

Despite these positive developments, India still faces challenges in achieving complete self-reliance in solar manufacturing. The country continues to rely on imports for solar photovoltaic (PV) cells and wafers due to limited domestic manufacturing capacity and the absence of wafer production facilities. Addressing this gap will require significant investments in research, infrastructure, and technological advancements to develop a robust upstream supply chain.

At the same time, Indian PV manufacturers are increasingly shifting their focus toward global markets. “India primarily exports solar modules. The export of solar cells is negligible. In fact, India’s exports of solar modules were nearly 35 times that of its solar cell exports (in terms of value) in 2023-24,” Rubix stated.

Until FY2024, three major domestic players—Waaree Energies, Adani Solar, and Vikram Solar—accounted for most of India’s photovoltaic exports, with each company exporting over half of its annual production. As demand for renewable energy grows worldwide, other Indian manufacturers, including Grew Energy, ReNew Power, Navitas, Solex Energy, and Saatvik Energy, are also expanding their presence in international markets. These companies are not only increasing their export volumes but also strengthening global supply chains by establishing partnerships and production facilities abroad.

India’s solar ambitions align with its broader commitments to sustainability and climate action. At COP26 in 2021, the country pledged to an ambitious five-part “Panchamrit” strategy, which includes achieving 500 GW of non-fossil electricity capacity, sourcing half of its energy requirements from renewables, and reducing carbon emissions by 1 billion tonnes by 2030. Additionally, India aims to cut the emissions intensity of its GDP by 45% and achieve net-zero emissions by 2070.