India has also achieved an enormous milestone when its Approved List of Models and Manufacturers (ALMM) of solar module production capacity nears 100 GW. This success indicates how fast the domestic solar production has been scaled and the effectiveness of the policy-driven tactics of limiting reliance on imports. Due to this capacity, India is currently one of the greatest solar module manufacturing centers in the world.
Policy Support Capacity Expansion
A combination of production-linked incentive (PLI) schemes, ALMM requirements on government-backed projects, and increasing domestic demand have caused the sharp increase in ALMM capacity. This has seen some of the large manufacturers increase the size of current facilities and new entrants in the market. Further, the ALMM framework has promoted investment in high-quality and bankable modules, which satisfy high performance and reliability criteria.
Good demand by the utility and rooftop markets
Increasing India’s targets of solar deployment has served as a key factor in manufacturing development. The utility-scale solar initiatives, rooftop, and hybrid renewable systems have continued to drive their demand with ambitious renewable targets and regular tender activity. This has resulted in the domestic manufacturers having a better view and confidence in the long-term capacity additions.
Strengthening the solar supply chain
In addition to modules, the 100 GW milestone is also expediting the creation of the overall solar value chain, such as cells, glass, back sheets, and inverters. Moreover, the enhanced localization is assisting in cutting down on the risks of the supply chains and the exposure to the worldly price fluctuations. Such a built-up ecosystem is likely to enhance cost competitiveness and also to boost the energy security of India.
Boost to jobs and technology upgrades
The growth of the ALMM-listed manufacturing capacity has produced a large number of jobs in different states. Meanwhile, suppliers are also shifting towards more advanced technology in the form of TOPCon, HJT, and bifacial modules so as to stay afloat in both the local and foreign markets. Hence, there is no scale-only milestone but a quality and innovation one.
Supporting India’s clean energy vision
India has now made a bold move on having 500 GW of non-fossil fuel capacity, with the ALMM solar module capacity reaching 100 GW and thereby reaching a target of 500 GW. In the future, the policy stability and the further rise of demand will become essential. However, it is a significant step towards making India a global solar manufacturing giant and a significant participant in the transition to clean energy on the global level.
