India considering export of solar cells as manufacturing capacity increases: Pralhad Joshi

According to a Mint report, India is now considering exporting solar cells as solar cell production in the country is growing rapidly and is poised to far outpace domestic demand. The government has initiated discussions with several countries for the first time to find buyers for this product, which converts sunlight into electricity and is assembled into solar panels, Union Minister for New and Renewable Energy Pralhad Joshi said in an interview. This optimism comes even as India's dependence on China for key inputs for cells remains a challenging factor in scaling up production.

India already exports solar panels or modules, but shipments to its largest overseas market have been hit by high US tariffs, forcing manufacturers to find buyers elsewhere. The export of solar cells will prove to be a significant transformation for a country that once relied on imports of this product to make modules for its green energy transition.

According to Pralhad Joshi, India's cell manufacturing capacity is currently 50 gigawatts (GW), which is expected to double to 100 gigawatts (GW) by next year. But with annual domestic demand not exceeding 50 gigawatts (GW), the country could soon face a situation of overproduction, much like the situation already seen in modules.

At a time when the US market remains virtually closed due to high tariffs, the minister said the government is already in talks with several countries for the purchase of cells from India. Africa and Europe are among the potential export markets.

According to Pralhad Joshi, our manufacturing capacity is increasing. Now our cell manufacturing capacity will be 70 gigawatts (GW) by December. In another three to four months it will exceed 100 gigawatts (GW). Once it exceeds 150 gigawatts (GW), we should also be in a position to look at the market.

Citing the overproduction of solar cells, he emphasized the need to export either as cells or by producing modules with domestic cells, adding that if a country is ready to take cells and manufacture modules, we should do it.

The minister said there is global interest. When we work at this level, the world also starts believing. We are already exploring the global market for cells. Seeing India's success, several countries want cells. We will see as we were already supplying modules to the US. Let's see what happens next.

Backed by domestic sourcing requirements, incentives, and investments, India's solar module manufacturing capacity has surged sharply in recent years, making the country a key supplier for the United States, which is keen to reduce its reliance on Chinese imports. This country has been the largest buyer of Indian solar modules, but recent anti-dumping and countervailing duties of up to 126 percent have forced manufacturers to halt shipments and seek alternative markets.

Data from the Ministry of Commerce and Industry shows that India exported solar modules worth $61.47 million to the United States during April-July, down sharply from $646.23 million in the same period of the previous year. During these four months of the financial year, most of the exports went to the United States. Total solar exports for the period stood at $65.24 million, about a tenth of shipments worth $668.05 million in the same period of the previous year.

Now, with the boom in cell manufacturing capacity, the government is forced to think of ways to create demand for these indigenous cells.

In a recent report, industry body Indian Solar Manufacturers Association (Isma) stated that India's overall solar photovoltaic manufacturing is expected to attract around $89 billion by 2047, translating to an average investment of around $4.3 billion annually during 2027-2047. Around 70 percent of this amount is expected to flow into polysilicon, wafers, and cells.