New Delhi, Aug. 23 -- India's solar manufacturing capacity is soaring - and quickly. Over the past two years, module production has surged to nearly100 gigawatts (GW), propelled by strong government support via policies like theProduction-Linked Incentive (PLI)plan and theApproved List of Models and Manufacturers (ALMM)policy.

While domestic demand has kept pace - with solar installations jumping 60% year-on-year in FY25 to around24 GW, which necessitated approximately50 GWdc in modules- projections now point to potential excess capacity.

SBI Capital Markets forecasts that by 2027, India's cumulative module capacity could reach190 GW, while yearly additions are expected to stabilise between40-50 GW.

This mismatch between production and...