India could face a significant shortfall in solar cell supplies from June when new regulations mandating the use of domestically produced cells take effect, according to the North India Module Manufacturer Association. The warning was outlined in a letter dated April 7 to the country’s renewable energy ministry, reviewed by Reuters.
The industry body said India’s current solar cell production capacity stands at about 25.6 gigawatts, far below the roughly 50 GW annual demand. Imports primarily from China currently meet over 90% of the country’s needs, underscoring a heavy reliance on foreign supply.
Compounding the issue, more than half of locally produced cells are based on outdated technology and are not widely used in modern solar projects, creating a mismatch between available domestic supply and project requirements.
The new rule builds on existing policies that already require locally manufactured solar modules, many of which still depend on imported cells. Enforcing domestic cell sourcing immediately could therefore disrupt ongoing and planned projects.
The association warned that the mandate may increase module prices, delay project timelines, and strain India’s renewable energy expansion plans, which are central to its 2070 net-zero emissions target.
It urged the government to consider a phased implementation, suggesting a nine-month delay to allow nearly 50 GW of upcoming cell manufacturing capacity to come online.
Manufacturers such as Solex Energy and Rayzon Solar have also cautioned that the rule could impact India’s 170-GW module manufacturing capacity if sufficient domestic cells are not available.
The renewable energy ministry has yet to respond to requests for comment.