India’s rapid solar expansion signals a major shift toward clean energy, cutting dependence on fossil fuels

For various stakeholders of the Indian solar sector and renewables space, nothing could have possibly been more encouraging than to see India scaling up its solar manufacturing at such an unprecedented pace with 181.6 GW of module and 86.1 GW of cell capacity under construction.

This remarkable growth reflects the country’s ambition to become a global solar leader and strengthens India’s path toward energy self-reliance and a clean energy future.

The exponential rise of solar has been made possible through consistent policy support, from the JNNSM to PLI schemes and initiatives encouraging rooftop and decentralized solar deployment.

Speaking to Bizz Buzz, Sohan Lal Agarwal, Managing Director, Websol Energy System Limited, one of the earliest movers in the sector, decodes India’s transformation into a clean energy consumer, reducing reliance on fossil fuels and moving steadily toward energy self-reliance.

How have you seen the Indian solar sector grow over the last three decades?

It is truly a moment of immense satisfaction for me to witness the journey of India’s solar sector over the past thirty years. When we began in 1990s, solar energy was largely experimental with several limitations, be it technology, financial feasibility or policy support.

Back then, I always envisioned a future where solar would become a mainstream energy source, powering homes, farms, industries, and contributing to the nation’s energy security. Today, seeing India achieve over 127 gigawatts of installed solar capacity, making it the third-largest solar generator globally, is nothing short of extraordinary.

The exponential rise of solar has been made possible through consistent policy support, from the Jawaharlal Nehru National Solar Mission (JNNSM) to Production Linked Incentive (PLI) schemes and initiatives encouraging rooftop and decentralized solar deployment.

More than just numbers, this growth reflects India’s transformation into a clean energy consumer, reducing reliance on fossil fuels and moving steadily toward energy self-reliance.

As someone who has been part of this journey from the early days, I am especially proud that Websol, as a pioneer in solar cell manufacturing, has grown alongside the industry. Our focus has always been on enhancing cell and module efficiency, while exploring innovative applications.

Seeing solar evolve from a vision into a cornerstone of India’s sustainable energy future is immensely fulfilling, and it reinforces our commitment to continued innovation and leadership in this sector.

What is your current solar module and cell manufacturing capacity?

Websol’s Falta plant currently has a solar cell manufacturing capacity of 1.2 gigawatts (GW), which we recently scaled up from 0.6 GW, and a module manufacturing capacity of 550 megawatts (MW).

What are the projected capacities over the next 3–5 years? What investment are you looking at?

Over the next two to three years, we plan to scale our solar cell manufacturing capacity from 1.2 GW to 5.2 GW and our module capacity from 550 MW to over 5 GW. This expansion will be supported by investments exceeding Rs 3,000 crore.

Alongside this, we aim to pursue further backward integration in the value chain, including ingot and wafer production, to reduce dependence on imports from China and strengthen India’s self-reliance in solar manufacturing.

Indian manufacturers together currently have 181.6 GW of module and 86.1 GW of cell capacity under construction, expected to be commissioned by 2027. Are we on the right track and pace?

It is extremely encouraging to see India scaling up its solar manufacturing at such an unprecedented pace, with 181.6 GW of module and 86.1 GW of cell capacity under construction. This remarkable growth reflects the country’s ambition to become a global solar leader and strengthens India’s path toward energy self-reliance and a clean energy future.

At the same time, it is important to recognize that simply expanding module capacity will not be sufficient. Solar is a technology-driven sector, and the performance and efficiency of cells remain at the core of long-term competitiveness. To truly achieve self-reliance and reduce vulnerabilities from global supply chain dependencies, the focus must also be on backward integration, innovation, and strengthening domestic capabilities.

With the right balance of scale, technology, and domestic value-chain development, India is poised to emerge not just as a large solar consumer, but as a global hub for high-quality solar manufacturing, powering the nation’s clean energy transition in a sustainable and resilient way.

How much solar module and cell capacity has India added in the first half of FY25, or over the last one year?

Let me respond to this with what I gathered from the latest Mercom India's "State of Solar PV Manufacturing in India 2025" report. India added approximately 25.3 GW of solar module manufacturing capacity and 11.6 GW of solar cell manufacturing capacity in the calendar year 2024.

While many manufacturers have announced ambitious capacity expansions, it is important to note that we cannot comment on the exact live capacities at present, as actual operational capacity can differ from announced figures.

Nonetheless, these additions underscore the rapid growth and momentum of domestic solar manufacturing, reflecting India’s commitment to enhancing self-reliance, strengthening the value chain, and reducing dependence on imports.

Various public sector and government entities issued tenders totalling 860 MW to procure solar modules in 1H 2025 — down 88.7% YoY. Are you and other Indian manufacturers expecting a substantial rise going forward?

Yes, the data is correct. Public sector and government tenders for solar modules totalled 860 MW in the first half of 2025, down 88.7 percent year over year.

This decline was primarily due to the government’s decision to cancel and reissue several tenders, likely to ensure compliance with the upcoming Domestic Content Requirement regulations.

In short, while the first half of 2025 saw a temporary slowdown in tenders, the outlook for Indian solar manufacturers remains positive.

How much of your overall business comes from household (residential) and how much from institutional sector? Do you expect this mix to change?

Currently, our business is 100 percent domestic, with the majority coming from projects that require Domestic Content Requirement compliance. We are actively supporting government initiatives such as the PM Surya Ghar program and Kusum projects.

Export contribution is minimal at this stage. We expect this domestic focus to continue in the near term, given the strong emphasis on DCR projects and government-led programs, though we remain open to exploring export opportunities as the market evolves

What is your take on the progress of the rooftop solar sector in the country? What needs to be done to give it a further boost?

We are happy with the progress of the rooftop solar sector in the country. Adoption has been steadily increasing, supported by government initiatives and growing interest from both residential and institutional customers.

At Websol, we are actively contributing by supporting projects that align with these programs, helping households and businesses adopt rooftop solar solutions.

Going forward, greater transparency in net metering practices across more states and increased awareness about the long-term benefits of rooftop solar will further accelerate adoption. With these measures, the sector has strong potential to expand and play a key role in India’s clean energy transition.

What about the PM-KUSUM scheme? How is it helping you grow? How much incremental business is it adding?

The PM-KUSUM scheme has been an important driver for growth in the solar sector. We are an OEM for several major solar pump brands and have our share in this success story.

The scheme provides a steady stream of domestic projects requiring DCR-compliant modules, particularly in the agricultural segment. Beyond energy, it is helping make rural India more self-reliant by improving irrigation, enhancing food security, and uplifting entire communities.

While it represents a moderate portion of our overall portfolio, it contributes meaningfully to our incremental business, strengthens our order pipeline, and supports our efforts to scale up production and deployment of solar solutions across the country.

Is application/use of solar energy progressing satisfactorily in commercial/industrial and agriculture sectors? Any suggestions to boost these sectors?

Yes, the adoption of solar energy is progressing steadily across commercial, industrial, and agricultural sectors, though there is still significant untapped potential.

In agriculture, schemes like PM-KUSUM are helping farmers shift to solar pumps, improving irrigation reliability, reducing dependence on diesel, and enhancing crop yields.

In commercial and industrial sectors, rooftop and captive solar installations are increasingly being adopted to reduce energy costs and meet ESG and sustainability targets.

To accelerate adoption further, several measures can help. In agriculture, easier access to financing for small and marginal farmers, along with technical support for installation and maintenance of solar pumps, will be important.

In commercial and industrial segments, transparent and uniform net metering policies, low open access charges, faster approval processes, and incentives for self-consumption and grid balancing can significantly boost adoption. Additionally, awareness campaigns highlighting the long-term economic and operational benefits of solar energy can encourage wider deployment across these sectors.

India’s solar PV module and cell imports were up over 34% and 66%, respectively. How can these be brought down to promote 'Atmanirbhar Bharat'/Make in India?

Yes, module and cell imports have risen recently, modules by over 34 percent and cells by over 66 percent. Module imports increased because developers had a large project pipeline, while cell imports rose as domestic module manufacturing scaled up quickly to meet growing demand.

These are temporary spikes. Government policies are actively supporting domestic manufacturers across the entire solar value chain. Under ALMM List-II, only module manufacturers using domestically made solar PV cells will be eligible.

Going further, ALMM List-III will apply to module manufacturers using both domestically made cells and wafers. This framework promotes backward integration, strengthening the domestic supply chain from wafers to cells to modules.

Over time, these measures will reduce import dependence, support the growth of India’s solar manufacturing ecosystem, and help build a fully self-reliant solar industry.