PLI Scheme for Solar Manufacturing in India — 2026 Progress Update
India's Production Linked Incentive (PLI) scheme for solar PV modules is reshaping the country's solar supply chain. As of mid-2025, India has 29 GW of solar cell capacity and over 120 GW of module capacity — a dramatic transformation from near-zero domestic manufacturing just 4 years ago.
PLI Scheme Overview
- Full Name: PLI — National Programme on High Efficiency Solar PV Modules
- Implementing Agency: MNRE / SECI
- Tranche I (2021): 3 winners, 8,737 MW fully integrated manufacturing
- Tranche II (2023): 11 winners, 39,600 MW manufacturing capacity
- Total awarded: ~48,337 MW
Manufacturing Capacity Progress (June 2025)
| Component | Target | Achieved (June 2025) | Status |
|---|---|---|---|
| Solar Cells | 42 GW (by June 2026) | 29 GW | On track |
| Solar Modules | 65 GW | 120 GW (total, incl. non-PLI) | Exceeded |
| Polysilicon | Large GW target | 3.3 GW | Lagging |
| Wafers | Large GW target | 5.3 GW | Lagging |
Key PLI Manufacturers in India
- Adani Solar: Largest integrated solar manufacturer — polysilicon to modules
- Waaree Energies: Largest module manufacturer, 12 GW+ capacity
- Vikram Solar: Premium Topcon and PERC technology
- Tata Power Solar: Growing domestic cell and module capacity
- Shirdi Sai Electricals: Wafer manufacturing under PLI
- Premier Energies: Listed company, cell and module manufacturing
India's Strengths and Gaps in Solar Manufacturing
Strengths
- Module capacity exceeds domestic demand — India now exports modules
- Cell capacity growing rapidly — 29 GW is significant vs zero in 2021
- Strong government policy consistency — PLI, BCD protection, ALMM
- Competitive labor costs vs China
Gaps
- Polysilicon: India produces only 3.3 GW worth — still heavily import-dependent from China
- Wafers: 5.3 GW capacity vs much higher demand
- Full supply chain independence (polysilicon to module) remains 2-3 years away
ALMM — Why It Matters for You
The Approved List of Models and Manufacturers (ALMM) is India's quality certification for solar panels:
- From June 2026: Only ALMM List-II compliant modules qualify for government-subsidized installations
- PM Surya Ghar, PM-KUSUM and all DISCOM net metering connections require ALMM modules
- Always ask your installer for the ALMM certificate of the panels being installed
- Check ALMM list at: mnre.gov.in/almm
How PLI Affects Solar Panel Prices
- Indian-made modules are now price-competitive with Chinese imports
- BCD (Basic Customs Duty) on imported modules: 40% — protects domestic manufacturers
- Budget 2026 further reduced raw material import costs for domestic manufacturers
- Expected: Solar panel prices to remain stable or decrease 5-10% by end of 2026 as cell capacity scales
What This Means for Solar Buyers
- More domestic panel options — wider choice of quality Indian-made panels
- Better quality assurance — ALMM compliance mandatory
- Potential price reduction as competition increases among Indian manufacturers
- Faster delivery — no customs clearance delays for domestic modules
- Better after-sales support from domestic manufacturers