India defers mandatory domestic solar cell sourcing for projects till December 31
The Ministry of New and Renewable Energy (MNRE) has deferred the mandatory domestic sourcing requirement for solar cells used in all domestic, commercial, and industrial solar projects until December 31, 2025. The decision, announced on Saturday, comes just one-and-a-half months after the mandate was initially implemented earlier this year.
In an official memorandum, the ministry stated that the exemption was granted after detailed consultations with stakeholders in the solar industry. The move is intended to ensure a 'smooth transition' to the domestic cell sourcing mandate, which aims to boost local manufacturing and reduce import dependence.
India currently has a large solar module manufacturing base with an annual capacity of nearly 200 gigawatts (GW). However, the manufacturing capacity for solar cells—the primary component of modules—is significantly lower at around 30 GW per annum. This disparity means that much of the module manufacturing capacity relies on imported cells, primarily from China and Southeast Asia.
The original mandate, which came into effect on January 1, 2025, required all solar projects to use domestically manufactured cells. Industry experts had warned that the sudden requirement could disrupt ongoing projects and raise costs, given the limited domestic cell supply. The deferral provides temporary relief to project developers and module manufacturers who depend on imported cells.
The MNRE emphasised that the exemption is a one-time measure and that the domestic sourcing requirement will be strictly enforced after December 31. The ministry also indicated that it is working to ramp up domestic cell production capacity through initiatives such as the Production Linked Incentive (PLI) scheme for solar manufacturing.
India has set ambitious renewable energy targets, including 500 GW of non-fossil fuel capacity by 2030. Solar power is expected to contribute the bulk of this capacity, making reliable domestic manufacturing crucial for energy security and self-reliance.
