India is considering an incentive scheme to promote domestic polysilicon manufacturing and reduce the country’s dependence on imported upstream solar materials, particularly from China. The Ministry of New and Renewable Energy (MNRE) indicated that the proposed support mechanism could encourage manufacturers to invest in deeper stages of the solar manufacturing value chain.

On the sidelines of the CII International Energy Conference and Exhibition in New Delhi, MNRE highlighted the need to strengthen India’s upstream solar manufacturing capabilities as the country rapidly expands its renewable energy ecosystem.

By July 2026, India had crossed 300 GW of non-fossil fuel-based power generation capacity and is progressing towards its ambitious target of 500 GW by 2030.

India has also emerged as the world’s second-largest solar module manufacturing hub, with more than 213 GW of installed module manufacturing capacity. Solar cell manufacturing capacity has reached around 32 GW, while the government expects this to rise to 100 GW within the next year.

Strengthening the Upstream Solar Value Chain

India is targeting at least 80 GW of ingot and wafer manufacturing capacity by June 2028. Developing domestic polysilicon production would further strengthen the upstream segment, creating a more integrated solar manufacturing ecosystem and reducing dependence on imported raw materials.

The proposed incentive scheme could therefore play an important role in encouraging investments in polysilicon and other upstream manufacturing capabilities, supporting the government’s broader objective of building a self-reliant solar supply chain.

Wind Manufacturing Gains Ground

The country has also made significant progress in domesticizing its wind energy manufacturing sector. Around 85% of wind-sector manufacturing is already indigenized, with India having approximately 24 GW of wind manufacturing capacity.

Renewable Energy Moves Towards Round-the-Clock Power

The growing competitiveness of renewable energy is also reflected in the increasing deployment of round-the-clock (RTC) renewable power projects. The Solar Energy Corporation of India (SECI) recently conducted an RTC renewable energy bid offering 90% assured power availability in each time block, with solar power accounting for no more than 50% of daytime supply. The discovered tariff stood at ₹5.25 per unit.

The tariff highlights the increasing ability of renewable energy developers to integrate solar, wind and energy storage technologies to deliver reliable electricity over extended periods.

Greater deployment of renewable energy and RTC capacity could also help reduce the average power procurement cost for distribution companies, currently estimated at around ₹5.20 per unit, while improving the reliability and predictability of renewable power.

Regional Energy Cooperation

MNRE also emphasized the importance of physical infrastructure and compatible regulatory frameworks to facilitate cross-border electricity trade. Initiatives such as One Sun, One World, One Grid (OSOWOG) could enable countries across different time zones to complement one another by sharing renewable electricity.

India is expected to continue supporting regional energy cooperation and sharing its renewable energy expertise with neighboring countries, including Bhutan.

With investments expanding across modules, cells, wafers and ingots, the proposed polysilicon incentive scheme could represent another significant step towards completing India’s domestic solar manufacturing value chain. Strengthening the upstream ecosystem will not only reduce import dependence but could also enhance supply-chain resilience and support India’s long-term renewable energy ambitions.

About Indosol Solar

Indosol Solar Pvt. Ltd., the solar PV manufacturing arm of Shirdi Sai Electricals Limited, is driving India’s renewable energy ambitions through the development of a fully integrated, giga-scale solar PV manufacturing ecosystem. The company is building capabilities across the entire solar value chain right from quartz processing to high-efficiency solar photovoltaic modules.

Indosol Solar has commenced operations with a 500 MW solar module manufacturing facility at Ramayapatnam, Andhra Pradesh, which has been expanded to 1.3 GW facility. As part of its rapid growth strategy, the company is progressing toward its vision of establishing 10 GW of integrated solar PV manufacturing capacity by 2028, supporting India’s transition towards energy self-reliance and sustainable development.