India’s domestically manufactured solar cells are expected to meet nearly 50% of the country’s total solar cell demand in fiscal 2026-27, a significant increase from about 25% in the previous fiscal, according to Crisil Ratings. The sharp rise reflects the government’s continued efforts to reduce reliance on imports and strengthen the domestic solar manufacturing ecosystem. At the same time, manufacturers are rapidly expanding production capacities to capitalize on growing demand driven by localization policies.
ALCM Policy Reshapes India’s Solar Supply Chain
The growth in domestic solar cell production follows the Ministry of New and Renewable Energy’s (MNRE) move to deepen localization requirements across the solar photovoltaic (PV) value chain. After implementing the Approved List of Models and Manufacturers (ALMM) for solar modules in April 2024, the ministry introduced the Approved List of Cell Manufacturers (ALCM) to promote the use of locally manufactured solar cells and reduce import dependence.
Effective from June 2026, the ALCM requirement will apply to utility-scale projects with bid submission dates after August 31, 2025, as well as net-metering and open-access projects commissioned after June 1, 2026. However, residential rooftop installations under the PM Surya Ghar: Muft Bijli Yojana will remain exempt until March 31, 2027.
Domestic Supply to Gain Significant Market Share
According to Crisil, India’s total solar cell demand is expected to remain robust at 60-65 GW during the current fiscal year. Manish Gupta, Deputy Chief Ratings Officer, Crisil Ratings, said the ALCM framework will significantly alter the country’s solar cell sourcing pattern. “The ALCM will sharply reset India’s solar cell supply mix. Domestic supply will gain share and meet around half of the 60-65 GW demand this fiscal, with imports making up the balance,” Gupta said.
He added that demand for indigenous solar cells will primarily come from newly awarded utility-scale projects, net-metering and open-access installations, and government-supported initiatives such as the Kisan Urja Suraksha Evam Utthaan Mahabhiyan (KUSUM). Imports are expected to cater mainly to the backlog of utility-scale projects awarded before the August 31, 2025 cut-off date. As this project pipeline gradually declines, India’s dependence on imported solar cells is likely to reduce substantially from the next fiscal onward.
Capacity Expansion Wave Underway
To capitalize on rising demand and favourable policy support, several domestic manufacturers have announced significant investments in new solar cell production facilities and expansion projects. Crisil estimates that India’s cumulative solar cell manufacturing capacity will nearly double to 60 GW by the end of fiscal 2026-27. As reported by pv-magazine-india.com, additional capacity additions are also expected in the following fiscal year. While this expansion strengthens India’s manufacturing capabilities, it may also create challenges for producers as increased supply could pressure capacity utilization levels and product realizations.

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