New Delhi, March 7 -- The solar industry will continue to face a demand-supply mismatch, despite a significant surge in cell manufacturing capacity over the next two years, according to a report by Share India.

The production of solar modules is expected to rise from 8 gigawatts (GW) to 50 GW by the financial year 2027. The report adds that the demand-supply mismatch in the sector is likely to widen.

Despite the sharp rise in cell production, the report highlights that the demand-supply gap is likely to remain wide as incremental cell capacity additions are expected to be concentrated toward the latter part of the two years.

According to the report, a major factor contributing to this imbalance is the introduction of ALMM-II regulation...