India’s solar components market to more than double to $7.8 billion by March 2028: CEEW

India’s market for solar module components could more than double to $7.8 billion (₹74,100 crore) by March 2028 from about $3.6 billion (₹34,200 crore) in September 2026, driven by rising domestic manufacturing capacity and demand, according to a study by the Council on Energy, Environment and Water (CEEW).

However, timely commissioning of planned manufacturing facilities and assured demand from solar module makers will be critical for the industry to realise its potential, the study said.

The study, released at the Bharat Renewable Energy Summit & Expo 2026 in New Delhi, said India has the industrial base to manufacture most of the components used in solar modules, excluding solar cells. These include solar glass, aluminium frames, copper ribbons, encapsulant sheets, backsheets and junction boxes, collectively known as the bill of materials (BOM).


India’s solar module manufacturing capacity reached 228.5 GW in September 2026, prompting manufacturers of ancillary components to scale up production to cater to the expanding industry.

Domestic annual manufacturing capacities of these components ranged from 20 GW for solar glass to 153 GW for junction boxes in September 2026. If planned expansions are commissioned on schedule, domestic capacities for aluminium frames, copper ribbons and encapsulants could meet India's estimated annual module demand of around 67 GW by March 2027. Solar glass capacity could meet demand by March 2028, while junction box manufacturing capacity is already sufficient.

Backsheets are an exception, as manufacturers are not planning fresh capacity additions amid the growing adoption of glass-glass solar modules.

The study said module manufacturers are willing to shift to domestically produced components from imports, provided local products match imported alternatives in cost and performance. Ensuring reliable supplies and consistent quality will therefore be important for domestic manufacturers.

India's dependence on imports has increased significantly in recent years. Between FY2021 and FY2026, imports of solar glass grew at an annual rate of 63%, from $129 million to $1.48 billion. Aluminium frame imports grew 88% annually, while junction box imports increased 92%.

China accounted for 66% of India's solar glass imports and 70% of aluminium frame imports in FY2026. Vietnam and Thailand supplied 34% and 31% of encapsulant imports, respectively.

Developing domestic supply chains could reduce manufacturers' exposure to international price fluctuations and trade-related disruptions, the study said.

The trade environment is also becoming more favourable for domestic manufacturers. China withdrew its value-added tax rebate on photovoltaic exports in April 2026, while India's anti-dumping duties on solar glass, aluminium frames and EVA encapsulants remain in force until 2029. These measures have increased the landed cost of imports, potentially improving the competitiveness of domestic products.

However, delays in commissioning local manufacturing facilities could push up solar module production costs, CEEW cautioned.

The study also highlighted the need to improve product quality, testing infrastructure and manufacturing capabilities. Indian manufacturers have opportunities to develop advanced products such as multi-busbar and reflective ribbons, low-temperature ribbons for heterojunction cells and composite frames, which could improve module efficiency and performance.

It recommended uniform testing standards across the industry and dedicated customs codes for each of the six solar components to improve import tracking and enforcement of trade measures.

Rishabh Jain, Fellow at CEEW, said India had demonstrated its ability to assemble solar modules at scale, but the next challenge was to manufacture the components at scale and to the required quality standards. Sustained investment and local demand could help India emerge as an alternative global supply chain for solar module components.

The study recommended bringing all six components under the Approved List of Models and Manufacturers (ALMM), with listings by January 2028 and implementation from January 2029. It also proposed extending the Domestic Content Requirement to these components from January 2028 to provide greater demand certainty to domestic manufacturers.

CEEW further called for uniform testing standards from the Ministry of New and Renewable Energy, the Bureau of Indian Standards, and industry stakeholders, along with dedicated customs classifications for component variants before the Union Budget 2027-28.