"De-Sinicization" is blocked! Dozens of Module Factories in Big Photovoltaic Countries Shut Down

2026-07-23 20:30:30

Reuters reported on July 23 that as the government is vigorously promoting localized manufacturing, resulting in insufficient supply of domestic solar cells, many Indian photovoltaic module companies have been forced to stop production or reduce production, and some companies have been waiting for domestic cells for up to eight months.

Reuters reported

on July 23 that the government is vigorously promoting localized manufacturing, resulting in a shortage of domestic solar cells. Photovoltaic

in India have reported that supply disruptions caused by regulations that came into effect on June 1 have threatened thousands of jobs and nearly $4 billion in investment." At the same time, it endangers the realization of India's target of photovoltaic installation in 2030.

"We have suffered huge losses in the past three months due to a lack of domestic cell supply," said Shailendra Shukla, chairman of Indian module maker Icon Solar, who expects output at its plant to be hit from the current 3.

de-Sinicization of domestic production capacity. Companies that

lack their own battery equipment say they wait as long as six to eight months for domestic batteries , which almost doubles the cost of domestic components. It is much higher than products using solar cells made in China.

India While Indian companies have built about 200 GW of PV module capacity so far, they have only 27 GW of solar cell capacity .". The data given by EUPD, a German research Institute, and industry sources are even more different, with the actual operating battery manufacturing capacity of only about 16 to 18 GW . India relies on China for about 95% of its solar cell imports, according to industry estimates.

"India faces a severe battery supply shortage, and it may take three to five years to fill the gap," said Rajan Karsotra, senior consultant for EUPD research.

Local analysts said that the shortage of cells led to the shutdown of module factories, which could delay the promotion of solar energy projects in the country and push up costs, thus delaying India's goal of achieving 500 GW non-fossil energy power generation by 2030. According to the Central Electricity Authority of

India, solar power currently accounts for about 29% of the installed capacity of non-fossil energy power generation in India, and is expected to grow from 162 GW to more than 292 GW by 2030.

However, it is noteworthy that, according to the digital new energy DataBM.

Previously, in July 2025, India issued a solar cell list ALMM List-ll to promote the development of the local photovoltaic cell industry , which was originally scheduled to take effect on June 1 , 2026.

It is noteworthy that in 2019, the Ministry of New and Renewable Energy (MNRE) of India issued an ALMM list. It is divided into List-I (component) and List-II (battery)

ALMM List -l for components was implemented in 2024. In March 2026, India's Ministry of New and Renewable Energy launched the third ALMM List (ALMM List-III) for silicon ingots and wafers . The list will take effect on June 1 , 2028.

According to the provisions of the Act, solar projects falling within the scope of ALMM must purchase modules from List I, while modules must use cells from List II, and these cells must use silicon wafers from the new List III.

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Correlation

Reuters reported on July 23 that as the government is vigorously promoting localized manufacturing, resulting in insufficient supply of domestic solar cells, many Indian photovoltaic module companies have been forced to stop production or reduce production, and some companies have been waiting for domestic cells for up to eight months.

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