National News

Solar PV Overcapacity Risk

September 4 , 2026 12 hrs 0 min 17 0

India’s solar photovoltaic (PV) module manufacturing capacity reached 233 gigawatts (GW) by June 2026, raising concerns about overcapacity and weak upstream manufacturing.
India had 233 GW of solar module capacity, but only about 35 GW of cell capacity and very limited ingot and wafer capacity, showing a major upstream gap.
Module factories were operating at only 35% to 40% utilisation, while another 135 GW of capacity was planned or under construction.
Data centres, green hydrogen and exports could add 17 GW to 22 GW of solar demand by 2030, but this may not absorb the expected surplus.
India exported about 4.5 GW of solar modules in Financial Year (FY) 2026, with nearly 97% going to the United States (US), creating high export dependence.
Small non-integrated manufacturers and those using older Passivated Emitter and Rear Cell (PERC) technology face higher risks, while Tunnel Oxide Passivated Contact (TOPCon) already accounts for over 70% of India’s module capacity.