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The solar power industry in India is likely to get a huge lift, as the total capacity is expected to reach around 216 gigawatts (GW) by FY28, IANS cited CareEdge Advisory's report. The capacity increase will be due to the government's backing, increasing investments, and solar technology advancements.

The Production Linked Incentive (PLI) scheme has played a major role in expanding India’s domestic manufacturing capacity, the report noted. Along with the PLI scheme, other government policies like the Basic Customs Duty (BCD) and the Approved List of Models and Manufacturers (ALMM) have encouraged local production of solar modules and cells.

India’s installed solar capacity jumped from 3.9 GW in FY15 to 127.3 GW as of September 2025, contributing about 25.7 per cent of the nation’s total power capacity, IANS reported citing CareEdge. Efficiency gains have also helped lower costs- typically, 1,700–2,200 solar panels of 500 watts each are used to produce 1 MW of power.

India’s exports of solar photovoltaic (PV) products have risen more than ten times between FY19 and FY25, mainly to the United States, according to the report. With a growing base, India now ranks as the fourth-largest solar module producer globally.

By the end of fiscal year 2028, the total manufacturing capacity of solar modules in the country is anticipated to be 200 GWp, which is close to four times the annual average demand that ranges between 50 to 60 GWp. The domestic production of solar cells is expected to reach 100 GWp supported by new investments of over Rs 55,000 crore.

India's goal of around 215-220 GW in solar capacity by FY28 will require approximately 36-47 crore of 500-watt solar panels. According to the report, the production of both modules and cells will probably be higher than the local demand, thereby making export a major factor for growth in the coming years.

Despite the impressive progress, warned that India is still reliant on Chinese supply chains for the upstream parts. It also highlighted as a medium-term issue the slow growth in renewable capacity due to systemic problems.

India is going to empower its global solar manufacturing hub position and take a giant leap towards its clean energy goals by FY28 with the ongoing policy support and huge investments.

Akanksha is a writer who covers personal finance and commodities, with prior experience in cryptocurrency reporting. She has also covered political elections a