Increased Domestic Production Leads to Reduced Reliance
A recent report shows that India’s domestic solar module production capacity has increased, leading to a 76% decline in solar module imports from China in the first quarter of 2023. This marks a drop from 9.8 gigawatts in the first quarter of 2022 to 2.3 gigawatts this year. The decline is a result of India’s increased focus on domestic production capabilities.
A Unique Scenario Amid Global Trends
Interestingly, while China’s solar panel exports are rising—registering a 34% increase in the first quarter of this year—India stands as the only country where a substantial decline in imports from China has been observed. According to energy think tank Amber, this trend has been particularly noticeable in the first quarter of this year.
Shrinking Dependence Since 2022
Neshwin Rodrigues, Amber’s India Energy Policy Analyst, stated that India’s dependence on China for solar modules has been decreasing continuously since 2022. “The decline is a result of recent policy interventions aimed at boosting domestic production,” Rodrigues said.
Need for Effective Policy Environment
“As India is moving closer to becoming self-reliant in solar production, excessive dependence on Chinese modules and cells is no longer a limiting factor,” said Rodrigues. “What is now required is an effective policy environment to ensure solar installations are also in line with the national electricity plans.”
Solar Growth at Its Peak
Sam Hawkins, Amber’s Head of Data, concluded that the growth of solar energy is at its peak. “The world is rushing to use this cheap, abundant, and clean source of energy to power the economy of the future,” he said.
| Metrics | Q1 2022 | Q1 2023 | % Change |
|---|---|---|---|
| Solar Module Imports | 9.8 GW | 2.3 GW | -76% |
| China’s Solar Exports | 85 GW | 114 GW | +34% |
| Domestic Production in India | Not Available | Increased | Not Available |
| Global Solar Production Capacity | Not Available | Not Available | No Constraints for 2030 Target |
This data signifies not just a shift in trade but also a potential game-changer in global solar energy dynamics.
