India’s Solar Surge: Manufacturing Milestone and Policy Boosts Spotlighted

November 10, 2025 • By SolSetu • Publication ID: CAow9tLBDA

India’s solar ecosystem is undergoing a powerful transformation, marked by significant manufacturing growth, tax policy reforms and increasing self-reliance in solar production.

Manufacturing Capacity Crosses 100 GW

The country has now achieved more than 100 GW of domestic solar photovoltaic (PV) module manufacturing capacity under the Approved List of Models and Manufacturers (ALMM) norms — up from just 2.3 GW in 2014. :contentReference[oaicite:2]{index=2} This milestone underlines how India is building the supply-chain capability to support massive solar deployments and reduce dependency on imports.

GST Cut to Boost Solar Adoption

The GST Council has lowered the Goods & Services Tax (GST) on solar cells and modules from 12% to 5%, effective from 22 September 2025. :contentReference[oaicite:4]{index=4} This move is expected to make solar installations more affordable, especially for rooftop and distributed systems — thereby accelerating residential and commercial solar uptake.

Overcapacity Concerns & Industry Dynamics

While manufacturing capacity is scaling up rapidly, analysts caution about potential overcapacity in the solar module segment: with projected annual module production of 60-65 GW and expected annual additions of 45-50 GW, consolidation may be necessary. :contentReference[oaicite:5]{index=5} For stakeholders in the solar vendor-client ecosystem this signals both opportunity and the need to stay agile.

Implications for Solar Vendors and Clients

• Vendors can leverage domestic manufacturing scale to source better priced modules and highlight “Made in India” credentials to clients.
• Clients (residential, commercial, industrial) should benefit from lower module costs and more competitive solar system pricing thanks to the GST cut.
• End-to-end integrators (like ones featured on platforms such as SolSetu) need to anticipate module supply chain shifts, pricing pressure, and evolving competition.
• Given overcapacity concerns, vendors must differentiate through quality, warranties, value-added services (O&M, monitoring, financing) rather than just price.

What’s Next?

As India ramps up solar manufacturing and reforms policy, the solar market is entering a phase of maturation. For new solar vendor-client directory platforms and facilitators (B2B/B2C), the evolving landscape means more vendors will emerge, competition will increase, and value-added ecosystem services will matter more.

For anyone engaged in solar projects under government schemes like Pradhan Mantri Surya Ghar Muft Bijli Yojana, PM-KUSUM Scheme or vendor-lead EPC business, this is a time to strengthen vendor portfolios, standardise vendor-client directory listings, emphasise certifications and local manufacturing credentials, and align with the “Made in India” momentum.

Conclusion

The solar power story in India is moving from volume and scale growth to structural strength: manufacturing self-reliance, cost reduction, and policy tailwinds. For platforms like SolSetu that connect solar vendors and clients, now is the moment to align with this evolution, help vendors showcase their credentials, assist clients understand the shifting cost-benefit landscape, and build a robust ecosystem for solar adoption.

About SolSetu
SolSetu is your solar bridge to trusted vendors — a directory platform for solar vendors & clients in India, specialising in on-grid/off-grid solar systems, tie-ups under Indian government schemes, and facilitating transparent vendor-client matchmaking.