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					</table>India&#8217;s solar manufacturing industry faces uncertainty over domestic sourcing requirements, growing pressure from U.S. trade restrictions, and competition from Chinese manufacturers. As the country moves toward greater domestic integration, solar cell availability is expected to become a critical factor determining module production.
According to Prashant Mathur, Chief Executive Officer at <a href="https://www.saatvikgroup.com/" target="_blank" rel="noopener">Saatvik Green Energy</a>, the changing implementation timelines for domestic manufacturing requirements have complicated investment planning for manufacturers. Meanwhile, U.S. anti-dumping and countervailing duties on Indian solar products are increasing pressure on domestic manufacturers by restricting export opportunities.
Speaking to Mercom India on the sidelines of the Renewable Energy India (REI) Expo 2026, Mathur discussed regulatory challenges, the impact of trade restrictions, domestic manufacturing capacity, research and development, and Saatvik Green&#8217;s plans to expand into solar cells, inverters, batteries, energy storage systems, and transformers.
What challenges does India’s solar manufacturing industry face?
The biggest challenge is uncertainty over implementing domestic manufacturing requirements, particularly the Approved List of Models and Manufacturers (ALMM) framework.
The implementation timeline was initially expected to begin on June 1 but has now been pushed to January 1. Such changes create uncertainty for manufacturers who have already made significant capital investments based on earlier implementation schedules.
Solar manufacturing is capital-intensive, and companies need policy certainty to plan investments, financing, and production capacity. Changes in implementation timelines affect financial projections and can also influence investor confidence and debt planning.
How are U.S. antidumping and countervailing duties on Indian solar exports affecting domestic manufacturers?
The duties have shocked the Indian solar manufacturing industry. A significant portion of India&#8217;s manufacturing capacity was built in anticipation of export opportunities in the U.S. market.
Manufacturers expected to export at least part of their production to the U.S. However, trade duties have affected these expectations.
As export opportunities become more challenging, manufacturers must find domestic buyers for additional production capacity. This is creating pressure on Indian manufacturers because more products are competing for demand within India.
The impact varies across companies. Saatvik Green has not been heavily focused on the U.S. market, so our exposure is relatively limited. However, manufacturers that built their business strategies around U.S. exports face greater challenges.
Should Indian solar manufacturers diversify their export markets beyond the U.S.? What challenges do they face in entering other international markets?
Diversifying export markets matters, but entering new markets is not straightforward. China remains highly competitive in international solar markets because of its integrated manufacturing ecosystem and cost advantages.
The European market faces similar challenges, particularly because Chinese solar products don&#8217;t face the same restrictions there as they do in the U.S. Indian manufacturers are still catching up to established international supply chains and manufacturing capabilities.
It could take another two to three years for Indian manufacturers to become more competitive in certain international markets. China&#8217;s integrated manufacturing capabilities and lower equipment costs make it difficult for other manufacturers to compete purely on price.
China has proposed restrictions on exports of certain solar manufacturing technologies. How could these measures affect India&#8217;s solar manufacturing industry?
The proposed restrictions have not yet been implemented, so their actual impact will depend on the final measures.
China does not have a monopoly on solar manufacturing technology. Its major advantage lies in manufacturing equipment at significantly lower costs than suppliers in other countries.
Other markets, including Taiwan, also offer solar manufacturing technologies. If China restricts equipment or technology exports, Indian manufacturers could face higher procurement costs and disruptions to their expansion plans.
However, this would not mean that manufacturers would be unable to access the required technologies. Alternative suppliers are available, although their equipment may be more expensive.
The restrictions could therefore set back manufacturers, particularly in project costs and implementation schedules, rather than completely preventing capacity expansion.
Does India need to invest more in research and development to strengthen its solar manufacturing industry?
Research and development generally expands as manufacturing operations scale up. As domestic manufacturing capacity increases and the industry matures, research and development investments are also likely to grow.
However, stronger support from universities and the government could accelerate this process. R&amp;D incentives could encourage domestic innovation and strengthen India&#8217;s manufacturing capabilities.
A stronger research ecosystem will become increasingly important as Indian manufacturers seek to improve competitiveness and reduce dependence on imported technologies.
With several companies announcing expansions in solar module manufacturing, is India heading toward an oversupply situation?
Several manufacturers continue to announce capacity expansions, but installed module manufacturing capacity alone does not determine how much production can enter the market.
The transition toward domestic solar cell requirements under the ALMM framework will change the industry&#8217;s supply dynamics. As these requirements take effect, the availability of compliant solar cells will increasingly determine module production.
Manufacturers may have substantial module assembly capacity, but that capacity cannot be fully utilized if the required solar cells are unavailable. Therefore, domestic solar cell production will increasingly be the critical factor, rather than the total module manufacturing capacity companies announce.
The industry needs to consider cell availability when evaluating potential oversupply and future pricing trends.
How do you expect manufacturers to manage existing module inventories as domestic cell requirements are implemented?
There are still projects that can use modules without the new domestic cell requirements. Several projects have already been awarded, while others are awaiting awards. These projects should provide demand for existing module inventories over the next eight to twelve months.
The transition to the new requirements will happen gradually, not immediately.
Over the next eight to twelve months, project awards are expected to shift increasingly toward the new ALMM requirements. As this transition progresses, solar cell availability will determine module production.
Manufacturers will need to align their module production plans with the availability of compliant solar cells.
What new solar module technology is Saatvik Green offering?
We are introducing a high-efficiency, dual-glass solar module incorporating quarter-cut solar cells.
Most modules currently use half-cut cells. We are moving toward quarter-cut cell technology, which enables higher power output within a similar module footprint.
The new module delivers approximately 621-625 W of power. This allows customers to generate more electricity from a smaller installation area.
We are among the first companies in India to introduce this quarter-cut cell technology. The objective is to improve module efficiency and maximize power generation within the available space.
What are Saatvik Green&#8217;s manufacturing expansion plans over the next three to five years?
We are expanding our manufacturing operations and developing an integrated manufacturing complex in Ambala. One of our immediate priorities is establishing solar cell manufacturing capacity.
The first phase of the cell manufacturing facility is expected to begin operations this quarter, while the second phase is planned for next year. We are also expanding our existing manufacturing footprint with an additional factory.
Beyond solar cells and modules, we are diversifying into inverters, batteries, and battery energy storage systems. We are developing manufacturing capabilities for these products as part of our broader integrated manufacturing strategy.
Transformer manufacturing is another important area of expansion. We are planning to scale up our transformer manufacturing operations, including products for telecommunications applications.
We are also developing additional manufacturing facilities to support this expansion. Our longer-term strategy is to expand across multiple segments of the renewable energy equipment value chain while continuing to adopt new technologies.
The objective is to strengthen our integrated manufacturing capabilities and expand our presence beyond solar modules into other equipment required for renewable energy deployment.

Saatvik Looks Beyond Solar to Inverters, Batteries, BESS, and Transformers: Interview

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					</table>India&#8217;s solar manufacturing sector is expanding rapidly as the government pushes for greater domestic value addition through frameworks like the Approved List of Models and Manufacturers (ALMM). While solar module manufacturing capacity has expanded rapidly, domestic solar cell production has lagged, creating supply constraints as the industry transitions to locally manufactured cells.
On the sidelines of the <a href="https://www.mercomindia.com/event/mercom-india-renewables-summit-2026" target="_blank" rel="noopener">Mercom India Renewables Summit 2026</a>, held in New Delhi on July 1 and 2, Mercom India spoke to Prashant Mathur, Chief Executive Officer of <a href="https://saatvikgroup.com/" target="_blank" rel="noopener">Saatvik Green Energy</a>, about the domestic manufacturing ecosystem, ALMM implementation, technology transitions, infrastructure needs, and India&#8217;s long-term renewables manufacturing ambitions.
Edited excerpts from the interview:
India currently has nearly 200 GW of module manufacturing capacity but only about 30 GW of cell manufacturing capacity. How significant is this mismatch?
There is a clear mismatch. However, this is typical of any rapidly growing industry. Every major business group wants to participate in the renewable manufacturing sector, which naturally leads to periods of overcapacity followed by consolidation.
If you look at actual production, 200 GW of module manufacturing capacity does not mean 200 GW of annual output. At current utilization levels, effective production is roughly 70-80 GW. That represents only about 20%-30% overcapacity relative to market demand.
The larger issue is cell manufacturing. Of roughly 30 GW of domestic cell capacity, only 10-12 GW is based on TOPCon technology. The remaining capacity is mono PERC, which will gradually become obsolete as more advanced technologies become available.
There is tremendous scope to expand domestic cell manufacturing, and many companies, including ours, are entering this segment.
How will manufacturers bridge the transition from mono PERC to TOPCon technology?
Technology transitions are a regular part of manufacturing. I often compare it to smartphones. If you have the latest model available, customers naturally prefer it. But if supply is limited, they continue purchasing the previous generation.
The same applies to solar manufacturing. TOPCon offers higher efficiency, so demand is significantly higher. Since domestic availability remains limited, mono PERC continues to find buyers. As additional TOPCon manufacturing capacity comes online, mono PERC will gradually phase out.
What is your assessment of the government&#8217;s decision to implement ALMM List-II on schedule?
One of the biggest concerns the industry has had in the past was policy inconsistency. The government has now demonstrated that it is committed to following through on its announced timelines, and that is an extremely positive development.
ALMM for modules was originally expected several years ago but was implemented much later, which delayed the development of India&#8217;s manufacturing ecosystem.
Now that ALMM List-II has been implemented and ALMM List-III has already been announced for ingots and wafers, manufacturers have a clear roadmap. It sends a strong message that the government is serious about building a complete domestic manufacturing ecosystem.
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Do you expect ALMM implementation to increase module prices?
Module prices are ultimately determined by demand and supply. The price increases seen over the past few months have largely been due to geopolitical developments and higher commodity prices rather than regulatory changes.
There may be a short-term price increase as domestic cell availability remains limited. However, once the announced manufacturing capacities come online, normal market dynamics should stabilize prices.
Do you believe India has excess module manufacturing capacity?
There is some overcapacity, but it is not as large as many people assume. At current utilization levels, effective module production is around 80 GW, while market demand last year was roughly 55-57 GW. That translates into approximately 20% overcapacity.
Going forward, module capacity will become less important than domestic cell availability because future projects will increasingly require Indian-made cells.
Manufacturers still have a transition window of roughly one to one-and-a-half years, during which they can continue supplying existing projects while integrating backward into cell manufacturing.
What additional policy support does the industry require?
Policy consistency remains the most important requirement because manufacturing projects involve substantial capital investment and long timelines.
In addition, India needs better industrial infrastructure if we want to compete globally.
Manufacturers require access to industrial land near ports, affordable electricity and water, common infrastructure, and lower financing costs. If these issues are addressed, India has every opportunity to emerge as a major global manufacturing hub.
How have recent global developments affected manufacturing?
Freight rates have doubled or even tripled over recent years. Oil prices, uncertainty around gas prices, and rising commodity costs have significantly increased manufacturing expenses.
At the same time, many countries are introducing incentives to promote domestic manufacturing. There is a broader shift in the global manufacturing landscape, which is accompanied by increasing geopolitical uncertainty.
Is skilled manpower still a challenge for advanced manufacturing?
Initially, yes. We have addressed this by building a workforce of experienced international professionals and Indian employees and ensuring continuous knowledge transfer.
Within the next year, we expect Indian professionals to operate these advanced manufacturing facilities independently.
Going forward, I believe the industry and government should jointly establish structured skill development programs.
Can India eventually match China in solar manufacturing?
Absolutely. The question is not whether India has the capability. We certainly do. The difference lies in the ecosystem. Chinese manufacturers benefit from easier access to land, roads, electricity, and water, as well as significantly lower financing costs.
We have a skilled workforce and the capability to compete. The cost difference primarily stems from differences in the overall manufacturing ecosystem.
Where do you see India&#8217;s solar manufacturing industry over the next five years?
We are only at the beginning of an explosive growth phase.
Within five years, I expect India to establish domestic polysilicon manufacturing. Once that happens, the country will have a complete solar manufacturing ecosystem, from polysilicon to cells and modules.
India will become self-sufficient and eventually emerge as a net exporter. Annual market demand currently stands at around 50-60 GW, but I believe it will eventually exceed 100 GW.
Demand will be driven by electric vehicles, electrification of cooking, artificial intelligence, data centers, and overall economic growth.
Recent geopolitical developments have also reminded the world that dependence on imported oil carries significant risks. India has more than 300 sunny days every year, making solar our most abundant and cost-effective energy resource.
We see very good days ahead—sunny days.

India Can Build a Complete Solar Manufacturing Ecosystem Within Five Years: Interview

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