Solar Cell Manufacturing: Gujarat To Take The Lead, Odisha New Entrant

Solar Cell Manufacturing: Gujarat To Take The Lead, Odisha New Entrant

India is on the cusp of a major transformation in solar cell production, and Gujarat is set to take the lead in solar cell manufacturing. With the country’s solar manufacturing sector rapidly expanding, the majority of announced and existing solar cell plants are concentrated in Gujarat, though emerging states like Odisha and Tamil Nadu are increasingly becoming key players.

More solar module makers are now shifting to cell manufacturing due to the likely imposition of an Approved List of Cell Manufacturers (ALCM) from April 2026. The imposition of the same will mandate the local module makers to use only domestic solar cells for manufacturing of solar modules in India.

Gujarat: The Solar Manufacturing Hub of India

Gujarat, already a leader in solar module production, continues to dominate India’s solar cell manufacturing landscape. The state will host the largest number of solar cell plants—nine in total—cementing its position as a solar manufacturing powerhouse. Gujarat’s favorable business environment, abundant sunshine, and strategic location make it a prime destination for solar manufacturing investments.

Odisha: A Rising Competitor in Solar Cell Manufacturing

While Gujarat maintains its lead, Odisha is quickly emerging as a major competitor. The state is set to host five new solar cell manufacturing plants, including an integrated facility by Waaree Energies that will also produce wafers and ingots. Other companies such as Saatvik Solar, Jupiter International, and MPIN Energy Transition are also planning to invest in Odisha, attracted by the state’s pro-solar policies and coastal proximity. Icon Solar En is exploring locations in both Odisha and Chhattisgarh to expand their solar cell manufacturing footprint.

Tamil Nadu: A Key Player in the Solar Revolution

Tamil Nadu is emerging as the third-largest attraction for solar cell manufacturing, with three major companies—Vikram Solar, Tata Power, and First Solar—investing in the state. With favorable policies, cheap labor, and access to ports, Tamil Nadu is positioning itself as a key player in India’s solar manufacturing future.

Other States Emerging as Solar Manufacturing Hubs

In addition to Gujarat, Odisha, and Tamil Nadu, several other states are emerging as attractive destinations for solar cell manufacturers. Maharashtra, Jammu & Kashmir, Rajasthan, and Uttar Pradesh are among the states that are seeing increased interest from solar cell manufacturers.

India’s Solar Cell Capacity: Projected Growth by 2027

India currently has around 8 GW of solar cell manufacturing capacity, with only a few manufacturers. However, Saur Energy International reports that the number of solar cell manufacturers in India is set to rise to 30 by 2027. The total proposed capacity for solar cells is expected to reach 110 GW by 2027. Achieving this target will depend on the successful execution of these plans, which require high capital investment and longer timelines compared to solar module manufacturing.

Why Odisha and Tamil Nadu Are Gaining Traction

The rise of Odisha and Tamil Nadu in the solar manufacturing space can be attributed to their strategic advantages. Both states benefit from pro-solar government policies and coastal locations, which enable easy import and export of materials. State-level incentives, including capital subsidies, stamp duty exemptions, electricity duty waivers, and contributions to PF and ESI for local workers, further bolster the confidence of solar cell manufacturers to invest in these regions.