India's solar panel production surges to 68 GW in 2024

It faces competition in exporting solar panels due to cheaper modules in Southeast Asia.

India’s solar panel production capacity reached 68 gigawatts (GW) in 2024, with the US as its major export destination due to the high demand for solar energy, according to Rystad Energy.

Rystad Energy said the Uyghur Force Labor Prevention Act in the US supports the shift towards solar panels produced in India.

However, Indian manufacturers are still facing competition from Southeast Asian firms who rely on material inputs from China which leads to lower costs.

“This makes it difficult for India to compete effectively as an exporter, signalling a need to shift focus towards its own domestic solar energy targets rather than prioritizing exports,” the report read. 

ALSO READ: Queensland gov’t invests $3.6m in solar panel recycling initiative

“However, exports from India are expected to increase as the US imposes duties on panels from Southeast Asian counterparts, which are expected to be as high as 254% and set to be implemented from June 2024, making these panels significantly costlier than ones from India,” it added.

India used to import solar panels from China due to their competitive pricing over domestic manufacturers.

The government then rolled out the Production Linked Incentive Scheme to empower domestic manufacturers to increase their production capabilities to enhance price competitiveness.

The government also came up with the approved list of models and manufacturers mandate and the basic customs duty on imported solar panels.