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Modules comprised 90.2% of exports, while cells accounted for 69.1% of imports
June 1, 2026
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India imported solar cells and modules worth over $1.27 billion (~₹116 billion) in Q1 2026, a 2.8% year-over-year (YoY) decline from $1.3 billion (~₹112.9 billion) in Q1 2025, according to data from the Department of Commerce.
On a quarter-over-quarter (QoQ) basis, combined module and cell imports increased by 14.3% from over $1.11 billion (~₹98.8 billion). Solar module imports rose 81.2%, while cell imports declined 1.9% from the previous quarter.

The surge in imports highlighted the continuing imbalance within India’s domestic manufacturing ecosystem. While India’s ALMM-listed module manufacturing capacity expanded rapidly during the quarter, domestic cell manufacturing capacity remained significantly lower. By the end of March 2026, ALMM-listed module manufacturing capacity exceeded 173 GW, while solar cell manufacturing capacity stood at only around 26.5 GW. Subsequent additions pushed module capacity closer to 193 GW and cell capacity near 30 GW, but the upstream gap remained substantial.
Developers procuring modules for ALMM-compliant projects raised concerns about the limited domestic availability of cells, particularly for high-efficiency TOPCon products. As a result, project developers accelerated imports ahead of the ALMM List-II implementation deadline to avoid procurement delays, price volatility, and potential supply shortages.
The Ministry of New and Renewable Energy has also expanded the ALMM framework further by introducing ALMM List-III for wafers, effective from June 1, 2028. The move reflects growing policy focus on reducing long-term dependence on imported upstream components such as wafers and cells.
Imported TOPCon modules remained more readily available for immediate procurement, particularly for commercial and industrial (C&I) projects operating outside strict DCR requirements. Developers and EPC firms accelerated procurement to avoid potential supply tightness, delivery delays, and pricing volatility ahead of the June 2026 ALMM List-II implementation.
The Directorate General of Foreign Trade’s Renewable Energy Equipment Import Monitoring System also contributed to accelerating procurement during Q1 2026, as developers and importers advanced shipments ahead of tighter import-monitoring and procedural-oversight requirements.
China remained the largest source of India’s solar imports, accounting for 39.7% of total shipments, followed by Indonesia (23.2%), Vietnam (12.6%), Thailand (10.8%), and Ethiopia (4.6%). Laos PDR, Malaysia, and Singapore also contributed smaller shares of imports.
The market also saw continued diversification beyond China, with imports from Southeast Asian countries such as Indonesia, Vietnam, and Thailand increasing during the quarter. Buyers increasingly diversified sourcing strategies to reduce concentration risk, improve procurement flexibility, and manage pricing uncertainty following China’s export rebate reductions and evolving global trade measures.
China’s export policy changes became another major factor influencing procurement behavior during Q1 2026. China reduced export tax rebates on solar PV products and later announced plans to scrap them for solar products from April 1, 2026. These measures raised concerns about future increases in module and cell export pricing, prompting Indian importers to advance shipments before prices could rise further.
Cells accounted for 69.1% of total imports, while modules comprised the remaining 30.9% in Q1. In the previous quarter, modules accounted for 19.5% of imports and cells 80.5%.

Solar Exports
India exported solar cells and modules worth over $77.7 million (~₹7.1 billion) in Q1 2026, a 70.9% YoY decline from $267.6 million (~₹23.2 billion).
On a QoQ comparison, exports declined 22.4% from over $100.2 million (~₹8.9 billion). Solar cell exports increased 591.8% sequentially, while module exports fell 29.2%.
Module exports continued to decline due to trade restrictions, weaker export competitiveness, and India’s growing dependence on a limited number of overseas markets, particularly the U.S.
The U.S. accounted for 90.5% of India’s solar exports during the quarter, highlighting continued concentration risk in export demand. The UAE, China, and Thailand accounted for 4.6%, 2.4%, and 0.6% of exports. Other Countries accounted for 2%.
Modules comprised 90.2% of total export shipments, while cells accounted for the remaining 9.8%. The increase in cell exports was primarily due to a low base in the previous quarter, even as overall export volumes remained weak.
Global trade restrictions continued to create uncertainty for Indian solar exporters during the quarter, particularly in key markets such as the U.S., where trade investigations, antidumping measures, and patent-related scrutiny on TOPCon technologies affected procurement visibility and pricing competitiveness.
At the same time, rising domestic procurement under ALMM- and DCR-linked projects provided manufacturers with relatively stronger order visibility and lower trade-policy risk compared to export markets. As export competitiveness weakened, manufacturers increasingly prioritized domestic supply commitments over overseas shipments.
Q1 2026 reflected the continued transition in India’s solar manufacturing ecosystem. Imports remained elevated due to module procurement ahead of tighter domestic sourcing requirements, while exports weakened amid slowing global demand and trade restrictions. The trend highlights India’s ongoing shift toward a more domestically integrated solar manufacturing ecosystem, even as short-term supply imbalances and external market uncertainties continue.
Mercom’s India Solar EXIM Tracker provides detailed solar import and export data by component types, suppliers, manufacturers, and developers.
For an in-depth look at the data, analysis, and charts, subscribe to our quarterly market report, Mercom’s Q1 and 2026 India Solar Market Update.
Staff
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