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Context:
The The Energy and Resources Institute (TERI) released the report “India’s PV Manufacturing & Its Strategic Inflection Points” at the Bharat Climate Forum 2026, alongside the launch of the National Cleantech Manufacturing Implementation Plan.
The report examines how India can capture higher domestic value from its rapidly expanding solar deployment by strengthening upstream and midstream manufacturing.
What the TERI Report Is About
It is a strategic policy-and-industry assessment of India’s solar photovoltaic (PV) manufacturing value chain, covering:
- Polysilicon
- Ingots and wafers
- Solar cells
- Solar modules
The report identifies “strategic inflection points” where targeted interventions in policy, finance, R&D, and skilling can make India globally competitive, resilient, and less import-dependent.
Key Trends Highlighted
| Theme | Key Highlights |
|---|---|
| Global Solar PV Scale (2024–25) | • Global cumulative PV capacity: ~2.2 TW (end-2024) • Global module manufacturing capacity: ~1.8 TW (projected end-2025) |
| Global Manufacturing Concentration | • ~80% of PV manufacturing capacity concentrated in China across the value chain |
| China’s Upstream Dominance | • Wafers: ~98% • Polysilicon: ~92% • Cells: ~91.8% • Modules: ~84.6% |
| Systemic Risks | • High geographic concentration creates supply-chain vulnerabilities • Energy-importing countries face risks from price shocks, export controls, and geopolitical disruptions |
| India’s Current Manufacturing Profile | • Manufacturing base is downstream-heavy • Dominated by module assembly, limited upstream integration |
| India’s Installed Capacity (FY2025) | • Module manufacturing capacity: ~120 GW per year |
| Policy Drivers of Scale-Up in India | • Production Linked Incentive (PLI) schemes • High import duties on finished solar panels • ALMM (Approved List of Models and Manufacturers) creating domestic demand-pull |
| India’s 2030 Manufacturing Ambition | • Module capacity: >280 GW/year • Cell capacity: ~171 GW/year (from ~30 GW currently) |
| Key Bottleneck: Finance | • Upstream segments are capital-intensive and high-risk • Limited access to low-cost, long-tenure finance |
| Proposed Financial Innovation (TERI) | • Issuance of sovereign Green PV Bonds • Objective: Lower borrowing costs and de-risk upstream investments |
| Need for a Full Manufacturing Ecosystem | • Solar Manufacturing Technology Parks • Dedicated PV–Semiconductor Skill Council • Structured recycling and circular economy frameworks |
| Stakeholder Involvement Required | • Central & State Governments • OEMs and developers • MSMEs • Financial institutions and long-term investors |
