India Needs Stronger Domestic Solar Production as China Weighs Tech Export Curbs: Solex Chairman

Solex Energy Chairman and Managing Director Chetan Shah has warned that proposed Chinese restrictions on solar manufacturing technology exports could trigger supply crunches and project delays in India. He highlighted a significant domestic capacity gap between solar modules and cells, urging government intervention and extended timelines.

India's solar energy sector faces potential supply chain pressures as China moves to restrict exports of key technologies used in solar equipment manufacturing. China has proposed regulating 12 sensitive technologies that serve dual purposes in aerospace, defence, and photovoltaic production.

Chetan Shah, Chairman and Managing Director of Solex Energy, noted that China currently controls an estimated 75 to 90 percent of the global solar supply chain. Speaking on the sidelines of the Renewable Energy India (REI) Expo 2026 in Greater Noida, Shah cautioned that without timely domestic cell capacity development, the industry risks supply shortages, project delays, and upward pressure on tariffs.

Data cited from the sector indicates that as of June 2026, India's module manufacturing capacity stood at approximately 262 GW, while domestic cell capacity was limited to roughly 37 GW. Furthermore, the country's ingot-wafer capacity is estimated at just 2 GW, with polysilicon manufacturing capacity remaining at nil. Shah also pointed out that much of the existing installed capacity relies on older MONO PERC technology, and several facilities are currently non-operational.

To mitigate potential disruptions, Shah recommended that the government extend the timeline of the ALMM-II framework by at least 12 months and broaden its scope to cover all solar project types. This extension is intended to give local manufacturers adequate time to establish domestic cell capacities while fulfilling existing orders.

Additionally, Shah proposed that India engage with international partners—including the US, European Union, Japan, Korea, and Taiwan—to diversify its sourcing of equipment and process technology. He suggested launching a dedicated mission for solar equipment manufacturing, supported by a production-linked incentive (PLI) or capital subsidy, alongside partnerships with Indian capital-goods companies, CSIR laboratories, and IITs. Diplomatic engagement with China was also recommended to protect existing contracts currently under execution.

"The potential restriction on solar technology exports by China highlights a structural vulnerability in India's renewable energy supply chain. While India has scaled up its module manufacturing capacity significantly, the wide gap in domestic cell and wafer production needs urgent attention. Policy frameworks like ALMM-II and targeted manufacturing incentives will be critical to support local players, build self-reliance, and insulate long-term infrastructure projects from external trade bottlenecks." — Dr. Shishir Gupta, Founder & CEO, StartupLanes