India is accelerating solar panel manufacturing to meet surging power demand and reduce dependency on Chinese imports, with firms like Adani and Tata operating factories 24/7. Driven by government initiatives like "Make in India," the nation targets a massive expansion in renewable capacity to 500 GW by 2030, though coal remains dominant in the energy mix. While production is ramping up, the sector faces potential overcapacity and continued reliance on China for raw materials.
India is accelerating solar panel manufacturing to meet surging power demand and reduce dependency on Chinese imports, with firms like Adani and Tata operating factories 24/7. Driven by government initiatives like "Make in India," the nation targets a massive expansion in renewable capacity to 500 GW by 2030, though coal remains dominant in the energy mix. While production is ramping up, the sector faces potential overcapacity and continued reliance on China for raw materials.
Key Aspects of India's Solar Boom:-
Production Surge: -
Major companies (Adani, Tata) are operating at full capacity, with projects like the Khavda solar park driving demand.
Reduced Reliance on China:-
The government is incentivizing local manufacturing through subsidies to reduce the 90% dependency on Chinese, although raw materials still come from there.
Energy Mix: -
Despite reaching 50% non-fossil fuel installed capacity by June 2025, coal still generates about 75% of India's electricity.
Ambitious Targets:-
India aims to increase renewable capacity from 230 GW to 500 GW by 2030, with 280 GW coming from solar.
Challenges: -
Concerns exist regarding potential overcapacity, the competitiveness of local panels against cheaper Chinese imports, and the high cost of raw materials.
As of early 2026, the sector is experiencing intense growth, aiming to align with net-zero commitments while managing the transition from coal.
Around 75 percent of electricity in India is still generated by coal-fired power plants. India is rapidly producing solar panels.
The Economic Times
India's solar-panel boom: -
Full throttle today, uncertain tomorrow
Renewable capacity of 230 gigawatts (GW) is set to rise to 500 GW by 2030, including 280 GW of solar.
Inside the world's largest renewable energy park - Solar Now
What Khanna describes is playing out across India's power sector. While coal still dominates electricity generation.
India achieved the milestone of 50% of its cumulative electric power installed capacity from non-fossil fuel sources in June 2025, five years ahead of the 2030 .
Renewable sources like solar and wind produce zero greenhouse gas emissions. This helps reduce air pollution, one of India's biggest health challenges.
22 Jan 2025 — As on 20th Jan 2025, India's total non-fossil fuel based energy capacity has reached 217.62 GW. The year 2024 saw a record-breaking 24.5 GW of solar capacity .
India's solar-panel boom: -
Full throttle today, uncertain tomorrow .
A huge market ... The sector's long-term sustainability may therefore depend on exports, with some companies already targeting global markets.
MJF Lion ER YK Sharma
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