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India solar module makers shut down after domestic cell rule starts

Since June 1, close to a third of India’s small and medium solar module makers have stopped operating, and production forecasts point to a drop from 3.2 GW to 1.0 GW.

Reported · Written up by our desk · Energy Transition

India’s push to expand solar generation has run into supply bottlenecks after new legislation took effect that requires solar module makers to use domestically produced cells, Reuters reports, citing unnamed industry sources.

The change has contributed to component shortages that have led local factories to shut down, putting roughly $4 billion in investment at risk, the outlet said. Since June 1, close to one-third of India’s small and medium solar module makers have stopped operating, with that segment accounting for 60% of the total industry.

A solar panel maker quoted by Reuters said it had faced domestic cell unavailability for the past three months. The maker expects solar module production to fall from 3.2 GW to 1.0 GW as the rule constrains supply.

Reuters adds that prior to the law, imports from China accounted for over 90% of the cells used by Indian module makers. The legislation targets less dependence on Chinese technology, but India’s government also aims for 500 GW of non-hydrocarbon generation capacity by 2030, and the disruption is expected to interfere with that rollout.

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