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Solar Cell Industry Eyes Rs1.3 Lakh Crore Capex to Add 50 GW Capacity as Domestic Procurement Norms Tighten

India’s solar manufacturing sector is preparing for a major scale-up, with plans to invest nearly Rs 1.3 lakh crore to create about 50 GW of additional solar cell production capacity by FY27. The aggressive expansion comes ahead of tighter domestic sourcing norms scheduled to take effect in June, which are expected to significantly reshape procurement patterns in the renewable energy market.

Leading the proposed capacity addition are major players including Waaree Energies, Adani Solar, Reliance Industries Limited, ReNew Energy Global Plc, Avaada Group, and Premier Energies. Industry estimates suggest that domestic cell manufacturing capacity could rise to around 45 GW by FY26 and potentially approach 95 GW by FY27, based on announced and pipeline projects.

The push follows the government’s mandate requiring solar cells used in state-supported projects and by distribution companies to be sourced from the Approved List of Models and Manufacturers (ALMM). The move is aimed at curbing import dependence—particularly on Chinese supplies—while strengthening the deployment of certified, locally produced technology. Setting up 1 GW of solar cell capacity is estimated to cost approximately Rs 2,600 crore, making the proposed 50 GW addition one of the most significant industrial investments in India’s renewable energy landscape.

While India’s solar module manufacturing capacity has expanded to nearly 160 GW, domestic solar cell production remains comparatively modest at around 30 GW. This gap has led to continued reliance on imported cells. In the solar value chain, silicon is converted into wafers, then cells, and finally assembled into modules. Although module assembly has scaled up rapidly, cell manufacturing continues to be a crucial missing link.

Company-wise projections indicate substantial expansion plans: Waaree Energies could reach about 15.4 GW of cell capacity by FY27, Adani Solar around 10 GW, Premier Energies roughly 10.6 GW, and ReNew Energy Global Plc close to 6.4 GW, with Avaada Group also planning notable additions. The capacity build-out aligns with India’s broader target of installing 50 GW of renewable energy annually to reach 500 GW of total renewable capacity by 2030.

The broader strategy reflects India’s intent to establish a more integrated domestic solar supply chain and reduce exposure to external trade risks. Industry executives acknowledge that while manufacturers are prepared to comply with ALMM requirements, some projects may experience short-term supply adjustments during the transition period.