REGULATORY · MARKET STRUCTURE · COMPETITIVE · INDIA
India mandates locally made solar cells in modules from June
Economic Times
17 Feb · 5:52 PM
Change
India will require that all solar modules sold domestically use locally made cells starting in June.
Why it matters
The June effective date makes cell origin a binding compliance condition for any module sold into India, altering contractability and delivery risk for projects using imported-cell modules. The mandate increases the value of domestic cell supply and creates a new bottleneck for manufacturers that are module-strong but cell-light, given continued upstream dependence on China for wafers and other inputs. With module-assembly utilization reported around 40%, the rule can redistribute margin and volume across the value chain rather than lifting overall demand. The renewable energy ministry has also stated it plans a similar local-content obligation for wafers starting June 2028, extending the constraint further upstream on a defined timeline.
Implications
- • Imported-cell modules become non-compliant for India sales from June
- • Domestic cell supply becomes a gating factor for module deliveries
- • Module makers without cell capacity face higher sourcing constraints
- • Wafers may face a similar local-content constraint from June 2028
Who is affected
- • Solar module manufacturers selling into India
- • Solar cell manufacturers operating in India
- • Utility-scale and rooftop solar project developers procuring modules
- • Non-Indian suppliers exporting modules/cells to India
Source
Read full article on Economic Times →
Topics
World & Politics Policy & Regulation Business & Markets Supply Chain & Logistics Manufacturing Energy & Power Solar