⚡ Quick Read
The Indian solar sector is currently undergoing a strategic transformation. Having established itself as the third-largest solar market globally, the industry is moving beyond the initial phase of rapid capacity expansion. With 150 GW of installed capacity as of March 2026, the focus is shifting toward building a sustainable value proposition centered on quality, reliability, and long-term operational excellence. This transition is essential to meet India’s ambitious target of 500 GW of non-fossil fuel power by 2030.
India’s manufacturing prowess has seen exponential growth. Domestic module manufacturing capacity has surged from 3 GW a decade ago to over 200 GW today. Furthermore, the Approved List of Models and Manufacturers (ALMM) now covers approximately 217 GW of module capacity. Projections indicate that by December 2027, total solar cell capacity will reach 100 GW, while module capacity is expected to exceed 165 GW. This growth is bolstered by the Production Linked Incentive (PLI) scheme, basic customs duties, and strategic localization policies. Notably, the government has mandated the compulsory domestic manufacturing of solar cells starting June 2026 to further strengthen the supply chain.
For EPC contractors and developers, the era of prioritizing the lowest upfront cost is ending. Poor lifecycle performance, often resulting from design flaws, improper cabling, and mounting issues, is increasingly seen as a risk to project bankability. Financial institutions are now evaluating projects based on long-term energy generation capacity and operational reliability rather than just initial capital expenditure. As the PM Surya Ghar scheme drives rooftop solar adoption, the demand for certified installers and high-standard EPC services is expected to rise significantly, rewarding firms that prioritize technical precision over price-cutting.
The industry is moving toward a more mature phase where traceability and quality assurance are paramount. The expansion of ALMM to include ingots and wafers represents a conscious effort to secure the upstream supply chain. As the India renewable energy sector continues to scale, the integration of high-quality domestic components with superior engineering practices will be the defining factor for developers aiming to secure long-term returns in an increasingly competitive market.
Aditya Pathre is the Founder of MVApulse and covers India’s renewable energy sector, including solar, wind, battery energy storage systems (BESS), green hydrogen, transmission infrastructure, renewable energy policy and competitive bidding. His reporting focuses on project developments, market trends, government policies and energy transition across India.
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