Solar manufacturing: modules without cells

LeadPrelims and MainsJuly 2026

Why in news

A rule in force from 1 June 2026 requires solar projects under government schemes, net metering and open access to use cells made in India. India makes far fewer cells than modules, so by July many module factories stood idle for want of cells.

about 200 GWIndia's capacity to make solar modules
27 GWits capacity to make solar cells, on paper
about 95 per centof India's cell imports that come from China

Background

A solar panel is made in a chain: polysilicon, then ingots and wafers, then cells, then modules.

The cell is the part that turns light into electricity. A module is cells wired together and framed, which is the easiest step.
India built the last step first. The earlier steps need more capital, more power and technology that China controls.
The Approved List of Models and Manufacturers (ALMM) names the equipment that government supported projects must buy: List I for modules and List II for cells.

The solar value chain from polysilicon to module, showing where India is strong and where it depends on imports.Source: The Hindu, 24 July 2026

What went wrong

With List II in force, module makers must buy Indian cells, and they wait six to eight months for them.
Nearly a third of small and medium module makers have halted output.
Modules with Indian cells cost almost double those with Chinese cells.
China has curbed exports of solar manufacturing equipment and technology, so new cell plants are slow to build.

What the government did

It extended the exemption from List II to 31 December 2026, but only for net metering and open access projects.
In August it began work on a subsidy scheme for polysilicon, the first link in the chain.
The production linked incentive for solar manufacturing rewards integrated plants that make the earlier stages too.

The dilemma

Self reliance: dependence on one country for an essential input is a risk, as the export curbs show.
Deployment: costlier panels slow the addition of solar capacity, and the gap would be met by coal.
A local content rule works only if local supply exists when the rule takes effect.

The way forward

Phase in local content rules in step with capacity.
Support the upstream stages, polysilicon and wafers, where dependence is deepest.
Fund research on newer cell technologies, so that India is not always buying the last generation.
Diversify import sources in the meantime.

Prelims facts

ALMM List I covers modules; List II covers cells.
The solar chain runs polysilicon, wafer, cell, module.
India's cell capacity is a small fraction of its module capacity.