India tightens solar supply chain rules to curb imports

New Delhi— India plans to mandate the use of domestically manufactured solar ingots and wafers in clean energy projects from June 2028, the renewable energy ministry said on Wednesday, in a move aimed at reducing reliance on imports from China.

The proposal would extend local sourcing requirements across the entire solar manufacturing chain, reinforcing earlier rules that already require the use of locally assembled solar panels in state-run projects.

Under current regulations, companies must use domestically produced solar panels, though key upstream components such as cells, wafers, ingots and polysilicon can still be imported. The new proposal seeks to close that gap by mandating local production of critical inputs.

India has already directed firms to use domestically manufactured solar cells starting June 2026, marking a phased approach toward building a fully integrated domestic supply chain.

Major energy firms including Waaree Energies, Tata Power and Indosol Solar have announced plans to invest billions of rupees to expand manufacturing capacity, aligning with policy signals favoring local production.

The push comes as India targets 500 gigawatts of non-fossil fuel-based power capacity by 2030, a goal that requires rapid scaling of solar installations alongside domestic industrial capability.

India currently depends heavily on China for imports of key solar components, including cells, wafers, ingots and polysilicon. The proposed mandate is expected to reduce that dependence while strengthening domestic manufacturing resilience.

The policy reflects a broader strategy to secure supply chains and support local industry as global competition in renewable energy technologies intensifies.