TOPCon Module Demand Outpaces Domestic Solar Cell Production
Domestic solar manufacturing in India has been experiencing pressure with the demand for Tunnel Oxide Passivated Contact (TOPCon) solar modules continues to outpace the availability of locally produced solar cells. The demand-supply mismatch has become more pronounced following the implementation of domestic content requirements (DCR) for many solar projects.
Demand for TOPCon on the Rise
The demand for TOPCon technology has been growing as the developers are increasingly are preferring higher efficiency modules that deliver better energy yields and lower levelized cost of electricity (LCOE).
The domestic cell production is inadequate to meet ever expanding module manufacturing capacity, thereby creating a bottleneck across the value chain.
The ALMM List-II Implementation has increased reliance on domestically manufactured solar cells for eligible government-backed, net-metered, and open-access projects, intensifying demand for Indian-made cells.
Manufacturers expect the supply pressure to ease over the coming months as several new solar cell manufacturing facilities become operational and existing plants ramp up production.
Why the shortage?
- India has invested heavily in module manufacturing, but solar cell manufacturing capacity has not expanded at the same pace. As a result:
- Module manufacturers are competing for a limited supply of domestic TOPCon cells.
- Vertically integrated manufacturers have a competitive advantage because they produce both cells and modules.
- Independent module manufacturers may face higher procurement costs and longer delivery timelines.
- Many domestic cell manufacturers are prioritizing captive consumption or export markets, reducing cell availability for independent module manufacturers.
The current supply constraints are expected to be temporary. Multiple manufacturers are commissioning new TOPCon cell production lines, supported by government initiatives aimed at strengthening India’s domestic solar manufacturing ecosystem and reducing import dependence. As these capacities come online, the availability of domestic TOPCon cells should improve, helping stabilize prices and support continued growth in India’s solar sector.
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—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 is currently being expanded to 1 GW, with commercial operations expected to begin in July 2026. 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 2027, supporting India’s transition towards energy self-reliance and sustainable development.