India Faces Potential Solar Cell Shortage Ahead of New Local Sourcing Rules

In New Delhi, concerns are rising over a possible shortage of solar cells as India prepares to enforce new local sourcing rules from June. The policy mandates the use of domestically manufactured solar cells, but industry experts warn that current production capacity may fall short of demand. India currently produces about 25.6 GW of solar cells, while demand stands near 50 GW, with imports—primarily from China—meeting the majority of needs.

The issue is further complicated by the fact that more than half of India’s existing solar cell production relies on outdated technology, making it less suitable for modern solar projects. While the country already requires locally made solar modules, many of these are built using imported cells. Industry players, including Solex Energy Ltd and Rayzon Solar Ltd, have warned that enforcing the new rule immediately could disrupt operations and impact the existing manufacturing ecosystem.

The industry body has urged the government to delay implementation and adopt a phased approach, noting that nearly 50 GW of new solar cell capacity is expected to become operational within a year. Without such flexibility, experts caution that the mandate could lead to higher costs, project delays, and setbacks to India’s renewable energy goals, including its long-term net-zero ambitions.

Pic courtesy: google/ images are subject to copyright