New Delhi: Indian solar panel manufacturers have shut production lines after facing waits of up to eight months for locally sourced components.
The disruption followed new rules introduced on June 1 to boost domestic manufacturing. Industry sources warned that the policy shift strained supply chains and slowed production.
Manufacturers without in-house solar cell facilities faced the longest delays. Waiting periods stretched from six to eight months for domestic cells, driving up production costs sharply. Panels using local cells now cost nearly twice as much as those built with Chinese imports.
The Ministry of New and Renewable Energy (MNRE) stated that no formal reports of shutdowns were submitted. MNRE added that prices are under review and domestic capacity is expected to improve within six months. However, industry participants indicated that the gap remains significant.
India struggled to scale up solar cell production due to the complexity of the technology. China restricted exports of key manufacturing equipment and technical expertise, slowing efforts to expand domestic capacity and reduce dependence on imports.
Delays threatened India’s goal of reaching 500 gigawatts of non-fossil fuel capacity by 2030. Current capacity stands at 288 gigawatts. Analysts noted that any slowdown in solar deployment could increase reliance on coal-based power generation, weakening the shift towards cleaner energy sources.
Solar power accounts for 29 percent of India’s non-fossil fuel capacity. The Central Electricity Authority (CEA) projected growth to more than 292 gigawatts by 2030, up from 162 gigawatts. While solar module manufacturing capacity reached about 200 gigawatts, solar cell production stands at only 27 gigawatts, with effective output at 16 to 18 gigawatts.
The outlook suggests continued pressure on project timelines, investment flows and overall sector confidence. Sustained policy support, faster capacity expansion and supply chain stability remain critical to stabilising the sector and meeting clean energy targets.
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