Syllabus: Infrastructure: Energy, Ports, Roads, Airports, Railways etc
Context: India faces challenge of sustaining its growing solar manufacturing capacity amid Chinese competition and limited domestic demand. With production capacity reaching 100 GW but annual installations only 17-23 GW, India explores African markets through International Solar Alliance to maintain industry viability and achieve climate commitments.
India’s Solar Achievements
- Cost Competitiveness: Solar power per unit cost fell below coal power in 2017, attracting business investments.
- Global Ranking: Generated 1,08,494 Gwh in 2024-25, becoming third-largest producer after China and United States.
- Manufacturing Growth: Solar module manufacturing capacity increased from 2 GW (2014) to 100 GW (2025) substantially.
- Installed Capacity: Domestically installed solar capacity reached approximately 117 GW by September 2025.
- Production Reality: Effective production capacity currently stands at 85 GW despite optimistic 100 GW projections.
Climate Commitments and Capacity Gap
- 2030 Target: India committed sourcing half its power requirements from non-fossil fuel sources totaling 500 GW.
- Solar Contribution: Expected solar power contribution ranges between 250 GW to 280 GW by 2030.
- Annual Addition Required: Needs adding approximately 30 GW solar capacity annually until 2030 deadline.
- Current Performance: India adding only 17-23 GW annually, creating significant gap from required targets.
Market Challenges
- Price Disadvantage: Indian modules cost 1.5 to 2 times more than Chinese modules domestically.
- Chinese Dominance: China’s superior production lines, raw material control and larger capacity enable lower pricing.
- Limited Exports: India managed merely 4 GW solar module exports to U.S. in 2024.
- China’s Export Scale: China exported approximately 236 GW solar modules annually in 2024 comparatively.
- Capacity Utilization: Large upcoming manufacturing capacity will struggle without discovering new international markets.
Africa Opportunity
- Strategic Positioning: India positioning itself as ‘solar supplier’ to Africa through International Solar Alliance leadership.
- Irrigation Potential: Africa taps only 4% arable land through irrigation due to insufficient rural power.
- Market Opportunity: Solar-powered Indian pumpsets can address African agricultural irrigation needs effectively.
- Competitive Landscape: China remains dominant African solar supplier; India aims becoming credible second player.
- Domestic Models: PM Kusum (rural solar) and PM Surya Ghar (urban rooftop) schemes offer replicable models.
Q- Assess the gap between India’s solar manufacturing capacity and actual installations. What policy measures are needed to ensure the sustainability of India’s solar industry while meeting climate commitments?