In a major policy shift aimed at strengthening domestic manufacturing, the Government of India has preponed the mandatory use of Made-in-India solar cells to 2025, advancing it from the earlier deadline of June 2026. The decision, announced by the Ministry of New and Renewable Energy (MNRE) on July 28, is expected to significantly boost demand for indigenous solar cell production and reduce reliance on Chinese imports.

Currently, India’s solar module manufacturing capacity stands at 91 GW, but solar cell production lags behind at just 27 GW. To close this gap, the MNRE has directed project developers to start using India-made solar cells in all renewable energy projects. This directive will come into force 30 days after the release of the updated "List II" of approved solar cell manufacturers, which is expected next month.

From October 2025 onward, tenders floated by public sector renewable energy agencies—including NTPC, SJVN, NHPC, and SECI—must mandatorily include domestic solar cell usage in their bidding terms. These PSUs play a key role in implementing India’s ambitious 500 GW non-fossil energy target by 2030.

Bids issued during the 30-day transition period following the list's publication will be exempted, but government-backed schemes such as PM Surya Ghar Muft Bijli Yojana and PM-KUSUM will continue to follow strict domestic content requirements (DCR) with no exemption.

The government hopes the move will spur investment in local solar cell manufacturing, where companies like Tata Power, Adani Green Energy, and Waaree Energies are already prominent players. This policy also aligns with India’s ongoing Production Linked Incentive (PLI) scheme to enhance solar PV module and cell capacities.

So far, only 25.5 GW of the 130.7 GW PLI-awarded capacity has been commissioned, with just 6 GW of solar cell manufacturing developed under the scheme. The Centre is also reportedly considering an extension of the April 2026 commissioning deadline for PLI recipients due to slow on-ground progress.

This accelerated mandate is a strategic step toward energy security, supply chain resilience, and reduced import dependency, especially amid rising global concerns about China’s dominance in clean energy components.