India’s solar industry has expanded quickly in recent years, but the manufacturing side of the sector is still trying to keep pace with demand. Industry bodies have begun raising a practical concern. Much of the equipment required to build solar infrastructure still relies on imports, particularly in wafering, crystal pulling, and process control.
That dependence has led manufacturers to ask for targeted policy support from the government. The discussion has centred on creating stronger domestic capacity in upstream manufacturing. According to recommendations submitted to policymakers, the solar industry has proposed a dedicated viability gap funding (VGF) support package ranging between ₹20,000 crore and ₹25,000 crore.
The objective is straightforward. Build 50 GW of domestic ingot and wafer manufacturing capacity and strengthen the upstream solar ecosystem in India.
The Manufacturing Gap Behind Solar Expansion
The current structure of India’s solar industrystill relies heavily on imported equipment. The key manufacturing processes, such as wafering, crystal pulling, and process control, continue to depend on foreign machinery.
That reliance becomes more apparent when companies attempt to expand domestic manufacturing. Equipment availability and cost become immediate constraints.
For organisations across the solar industry, including JAKSON, the issue is not simply about project development. It also concerns the supply chain that sits behind the panels and systems being deployed.
Without stronger domestic manufacturing, the upstream solar ecosystem remains incomplete.
The ₹25,000 Crore Viability Gap Proposal
Industry representatives have suggested a dedicated VGF support of ₹20,000–25,000 crore from the government. The proposal focuses on building 50 GW of domestic ingot and wafer manufacturing capacity.
These two stages sit at the beginning of the solar manufacturing chain. Strengthening them could help create a more stable domestic supply structure.
The recommendation came from the National Solar Energy Federation of India, which represents around 85% of the country’s active solar manufacturers. The federation submitted these proposals to the Ministry of New and Renewable Energy as part of broader policy suggestions aimed at building a stronger upstream solar ecosystem.
In practical terms, the funding would help offset the cost of setting up large-scale manufacturing facilities.
Capital Requirements Inside Solar Manufacturing
Manufacturing solar components is capital-intensive.
Industry estimates suggest that ingot and wafer manufacturing requires an investment of roughly ₹1,000 crore per gigawatt of capacity. When capacity targets reach tens of gigawatts, the financial requirements become substantial.
That reality explains why industry groups have requested support for viability gap funding. Without such financial assistance, expanding domestic manufacturing capacity becomes significantly slower.
For solar power companies seeking to build integrated supply chains, the investment barrier can slow the development of manufacturing infrastructure.
Support for Ancillary Solar Equipment
The proposal also includes support for related equipment manufacturers.
Industry representatives suggested that 10% of the VGF support should be directed toward the ancillary solar equipment industry. These companies produce the machinery and tools used in solar manufacturing lines.
Alongside this, the industry has asked for an additional ₹3,000–4,000 crore incentive package to encourage domestic production of machinery and equipment used in solar manufacturing facilities.
The idea is to strengthen not only panel production but also the ecosystem that enables those production lines to operate.
Policy Channels Under Consideration
The industry association proposed that this support could be delivered through existing government frameworks.
One option discussed is providing support through the Electronics Components Manufacturing Scheme. Another possibility is creating a separate scheme specifically designed for solar manufacturing equipment.
These recommendations were presented at an annual manufacturing roundtable attended by association members. The discussions focused on how India could position itself as a global hub for solar manufacturing.
The conversation was less about short-term expansion and more about long-term capability.
A Broader Impact on the Solar Ecosystem
Manufacturing capacity influences more than industrial output. It also affects how solar technology spreads across the country.
When domestic production grows, solar power companies can access components more easily. That eventually shapes the availability of systems ranging from utility installations to home solar energy systems.
The industry’s request for financial support reflects that wider perspective. The goal is not only to increase production capacity but also to build a stronger supply ecosystem for solar deployment.
Conclusion
India’s solar industry has already demonstrated its ability to scale project development. The next phase involves strengthening the manufacturing foundation that supports those projects.
The proposal for ₹20,000–25,000 crore in viability gap funding reflects the scale of investment required to build upstream capacity. Industry groups believe that domestic ingot and wafer production can grow significantly with the right policy support.
For energy companies working across solar infrastructure, including JAKSON, the outcomes of these discussions will influence how India’s solar manufacturing landscape develops in the coming years.
FAQ
The industry has proposed viability gap funding of ₹20,000–25,000 crore to build 50 GW of domestic ingot and wafer manufacturing capacity.
The recommendation was submitted by the National Solar Energy Federation of India, which represents about 85% of active solar manufacturers.
