Solar Energy India is going to make a big upheaval by the end of this decade. It is on its way to becoming one of the largest solar energy (PV) manufacturing bases in the world. About 213 gigawatts (GW) of new solar capacity is expected to be installed between 2025 and 2029. Also, the module manufacturing capacity will exceed 280 GW. The cell manufacturing capacity is expected to increase from 26 GW in 2025 to approximately 171 GW by 2029. This information has come out from the report of a well-known research organization named EUPD Research. It is titled ‘India’s Solar Surge: The Next Looming PV Price Shock?’ Is. The report shows that India’s solar energy sector is now entering a new phase of maturity and global ambition. Its focus now shifts from government initiatives to competition, technology and sustainability.

This massive expansion is creating huge export opportunities for India. If 65% of module manufacturing capacity is utilized, India can export about 143 GW of modules by 2030. This level of capacity is the breakeven point for most manufacturers.

India will have to find new markets

America has historically been buying the most solar modules from India. But now there has been strictness in the business rules. In such a situation, Indian manufacturers will have to pay more attention to regions like Europe, Middle East and Africa (MEA) to maintain production and expand their markets. Marcus A.W., Founder and CEO of EUPD Group. Hoehner said, ‘India’s solar manufacturing boom has provided large-scale production, now the focus should be on global competition. “Identifying the strongest markets and their stakeholders and meeting emerging sustainability and quality requirements will be essential to long-term success.”

The gap between India and China is decreasing

India’s cost situation has improved in the last one year. The gap between India and China in Tunnel Oxide Passivated Contact (TOPCon) module prices has reduced from $9W in early 2024 to $5.7W by October 2025. This improvement has been driven by advances in automation, large-scale production, integration, and production efficiency. However, minimum sustainable prices in India are still 14% to 17% higher than in China and Southeast Asia. This shows that technical and operational improvements are still needed.

There are several structural advantages that have helped India build a strong position in markets where sustainability is highly valued, such as Europe. The cost of freight from India to Europe is about 5% of the module price, while the cost of shipping from China is 8.7%. Furthermore, pollution from shipping on this route is approximately 65% ​​less than in China. These factors help comply with European Union (EU) industrial and carbon-related regulations.

The proposed EU-India Free Trade Agreement can also provide further momentum in this direction. This can provide mutual recognition of testing and certification. Also, opportunities for joint investment and technology cooperation may also increase. This agreement can prove to be a big boost for India’s solar energy sector.