India Eyes Localisation of Solar Ingots by 2028 — Here’s Why It Matters

India is proposing that clean energy firms use only locally made solar ​ingots and wafers from June 2028, ‌the country's renewable energy ministry said on March 18, in a move aimed at curbing ​Chinese imports.

With this, the South Asian ​country is looking to ensure the usage of ⁠domestically made components across the entire ​solar panel manufacturing chain.

India currently has a ​manufacturing capacity of about 2 gigawatt (GW) for ingots and wafers.

Companies including Waaree Energies and Indosol Solar, ​have proposed billions of rupees of ​investments to build renewable manufacturing capacity as India ‌aims ⁠to double its non-fossil fuel-based power capacity to 500 GW by 203

The government has already mandated the usage of locally assembled ​solar panels ​in state-run projects ⁠even though components like cells, wafers, ingots and polysilicon could ​be imported.

India currently relies entirely on ​China ⁠for its imports of cells, ingots, wafers and poly silicon for solar panels.

The ⁠country ​has also directed the ​use of domestically made solar cells from June 2026.

What It Means For India

India’s proposal to mandate locally made solar ingots and wafers by 2028 signals a deeper push for supply chain self-reliance and reduced dependence on China, which currently dominates global solar manufacturing, according to the International Energy Agency (IEA).

The IEA report further stated that costs in China are 10% lower than in India, 20% lower than in the United States, and 35% lower than in Europe. Large variations in energy, labour, investment and overhead costs explain these differences. Still, in the absence of financial incentives and manufacturing support, the bankability of manufacturing projects outside of panel assembly remains limited outside of China and few countries in Southeast Asia.

By extending localisation across the full value chain, the move could strengthen domestic manufacturing, improve energy security and create jobs, experts told Reuters.

However, analysts caution that limited domestic capacity and higher production costs may raise project expenses in the short term, potentially slowing installations. Rising commodity prices have increased the cost of producing solar PV modules, wind turbines and biofuels worldwide. This situation has short-term implications for equipment manufacturers, project developers and policy makers, stated another IEA report published in December 2021.

According to Bloomberg, over time, increased investments and policy support could help scale up capacity and bring costs down, aligning with India’s 500 GW non-fossil energy target.