India's Solar Component Market: Benefits of Local Sourcing

VMPL

New Delhi [India], November 20: The solar energy sector in India is undergoing rapid transformation, and it is visible everywhere. With the nation's ambitious renewable energy goals, the demand for quality solar components is increasing across utility, commercial, and residential segments.

In this blog, we will look at the most recent market statistics, current trends in key solar components, and why businesses are opting for locally made products over imported products.

India's Solar Sector Market Stats

The solar energy market in India is on the rise, and that means an opportunity for every solar component manufacturer in India to participate. In 2023 alone, the Indian solar energy market generated approximately USD 10.4 billion in revenue, and is projected to grow at a compound annual growth rate (CAGR) of approximately 13.4 percent until 2030, reaching around USD 24.9 billion. Solar - photovoltaic (PV) technology comprises the biggest proportion of the mix at approximately 75 percent of the market.

Industrial applications command the market opportunity, due to large-scale installations and government incentive schemes. For a component manufacturer in India, that translates into a continual and increasing need for high-efficiency modules, inverters, mounting structures, and BOS (Balance of System) components. With such rapid growth, local manufacturing is not only advantageous, it is necessary. By manufacturing locally, India's supply chain is fortified, costs remain stable, and dependency on imported solar support equipment is diminished, establishing a stronghold for manufacturers in the next phase of growth.

Solar Glass Market Statistics

The solar glass sector in India is experiencing impressive growth, spurred by the nationwide focus on utility-scale solar installations and higher-efficiency module technologies. Recent estimates indicate that the Indian solar panel glass market reached approximately 512.30 thousand tons in 2024 and is expected to grow to approximately 990.46 thousand tons by 2033, representing an impressive compound annual growth rate (CAGR) of approximately 7.6% during 2025-33.

This growth is indicative of an uptick in anticipated domestic sourcing of solar modules, growing bifacial and glass-to-glass usage, and federal nudges towards localisation. On the flip side, India has been seeing rapid growth in solar photovoltaic glass imports- reports suggest an import CAGR of over 51% from 2020 to 2024, reinforcing the need for domestic producers to step into the limelight.

Solar Encapsulant Market Statistics

The solar encapsulation industry in India is expected to experience robust growth, fueled by increasing solar panel installations and demand for greater durability and performance. The solar encapsulation market in India was valued at about USD 227.25 million in FY2025 and it is estimated to grow to USD 494.26 million by FY2033, growing at approximately 10.2%, CAGR.

EVA (ethylene-vinyl acetate) remains the dominant product, but new products such as POE and TPU are being introduced by manufacturers looking to improve module life and performance.

Solar Backsheet Market Statistics

The solar backsheet market, a necessary protective layer for solar modules, is witnessing growing demand in India as part of that country's scaling of solar capacity. Globally, the solar backsheet market size was approximately USD 2.4 billion in 2024, and it is projected to grow to around USD 4.5 billion by 2023 with a compound annual growth rate (CAGR) of about 6.9% from 2025-2033.

In India specifically, demand is being driven by large-scale utility solar farms, rapid adoption of rooftop installations for commercial and residential solar, and an increasing preference for higher-performance module designs that require premium backsheet materials.

As module manufacturers begin to transition to designs that allow for greater durability, efficiency, and longer life (for example bifacial modules, glass-back structures, and modules rated for harsher environments), the backsheet is becoming a crucial component that protects against UV exposure, moisture ingress, thermal cycling, and mechanical stress.

Reasons to Select Local Supply over Imports:

India has historically relied heavily on imports for solar parts. Most aluminum came from China, so did glass, back sheets, encapsulants, modules, and cells. The reliance on imports incentivized early adoption, but it also threatens the strength of the industry. Moving to local supply will have a wider-ranging appeal, both economically and strategically. Here's how:

Build supply chain resilience

The pandemic illustrated how fragile global logistics really are. Several border closures, shipping containers in short supply, and international disputes contributed to delays to solar projects all across India. Manufacturing in India makes the solar industry less susceptible to these threats while also providing supply reassurance and shorter lead times.

Lower fluctuation in costs & better price stability

As long as we are substantially providing from imports, our supply will be directly impacted by ocean freight charges and currency exchange rates and trade agreements. If manufacturers can, with certitude, establish a competitive price point, importing from outside India will be less advantageous.

Increase Industrial Growth & more jobs

The solar sector has the capacity to create prodigious amounts of skilled and unskilled jobs in and around manufacturing, R&D, installation and maintenance. Manufacturing and building capability in India will drive economic growth and stem the current educational model.

Align with Atmanirbhar Bharat & Make in India

Supporting local manufacturers works to the national agenda of self-reliance and independence in clean energy. Improving India's position in the global value chain of renewable energy and inciting technology homegrown innovation

The Environmental & Climate Benefits

Decreasing imports simply means a lower carbon footprint associated with logistics. Domestic manufacturing also helps to fulfill India's climate obligations and transition to renewable energy more quickly.

Encouraging World-class Domestic Leaders

Companies like Vishakha Renewables, India's leading solar component manufacturer, demonstrate that domestic manufacturing can maintain national standards while providing reliability, performance, and shorter lead times.

Conclusion

India's solar evolution is progressing with great speed, and the shift to local sourcing is proving to be a hallmark strength for the future of the industry. As the country reduces reliance on imports and builds a more robust domestic manufacturing ecosystem, firms gain access to better quality parts, shorter lead times, and stable pricing without the unpredictability of global logistics. With India developing into a source for elite solar component development, the quality of raw materials and technological development has reached global standards.

Leading this charge is Vishakha Renewables, one of India's manufacturers of solar panel materials, specializing in high performance solar glass, backsheets, encapsulants and other solar-related materials. Vishakha Renewables' commitment to innovation, dependable supply chain and large volume local manufacturing provides a boost to solar developers, EPC firms and panel manufacturing across the country.

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