India's Solar Surge: Manufacturing Capacity Jumps, But Cell Supply Lags Behind

India just supercharged its solar manufacturing game, adding a massive 50.6 Gigawatts (GW) of solar module and 9.7 GW of solar cell capacity in the first half of 2026 alone. This impressive leap, highlighted by Mercom India latest report, pushes the nation's total module capacity past 261 GW and cell capacity to over 36 GW as of June 2026, marking a significant stride towards energy independence. However, this rapid expansion isn't without its challenges. While module manufacturing is booming, the growth in solar cell production hasn't kept pace, creating a noticeable gap and a continued reliance on imports, with cells making up 81% of all solar imports in 1H 2026. This imbalance, coupled with low factory utilization for existing module plants, poses a puzzle for India's 'Atmanirbhar Bharat' vision, even as government incentives like the Production Linked Incentive (PLI) scheme aggressively push for domestic production across the value chain. Looking ahead, India is actively working to bridge these upstream gaps, with discussions underway for a new PLI scheme specifically for polysilicon manufacturing—a critical raw material currently sourced entirely from abroad. This move is vital for truly localizing the entire solar supply chain and meeting India's ambitious target of 500 GW of non-fossil fuel capacity by 2030. While transmission bottlenecks currently challenge the grid's ability to absorb all new renewable power, sustained policy pushes and strategic investments are expected to solidify India's position as a global solar manufacturing powerhouse.