Vikram Solar to commission 9 GW PV cell manufacturing capacity by December

Vikram Solar will commission 9 GW of photovoltaic (PV) solar cell manufacturing capacity by the end of December 2026, as part of its ongoing expansion efforts. This development is significant for India’s solar industry, aligning with new domestic content policies and strengthening the company’s market position.

According to PV Magazine India, Vikram Solar is advancing its first phase of a 12 GW solar cell manufacturing facility, with the 9 GW capacity targeted for completion by December 2026. The company is also expanding its module manufacturing capacity from 9.5 GW to 15.5 GW, with the additional capacity expected to be operational by the first quarter of fiscal year 2027.

The expansion coincides with the implementation of India’s ALMM List-II, effective June 1, 2026, which mandates that solar modules used in various government-supported and open-access projects must source cells from ALMM-listed manufacturers. This policy is expected to favor domestic, integrated players like Vikram Solar, especially as the industry anticipates the upcoming ALMM List-III for wafers and ingots, expected in June 2028.

Vikram Solar has secured interim domestic cell supply through a 2 GW ALMM-compliant sourcing agreement with Jupiter International, ensuring access to domestically sourced cells ahead of its backward integration plans. However, analysts note that this arrangement is unlikely to significantly impact the company’s earnings, as pricing premiums linked to domestic cell sourcing are expected to remain with cell suppliers rather than module manufacturers.

Impact of Domestic Cell Capacity Expansion

This expansion is crucial for Vikram Solar’s competitiveness under India’s evolving solar policies. As domestic cell capacity lags behind module manufacturing, access to ALMM-compliant cells will become a key differentiator. The move supports India’s goal of increasing local manufacturing and reducing reliance on imports, potentially accelerating industry consolidation and supporting domestic supply chain resilience.

For investors and industry stakeholders, Vikram Solar’s capacity increase signals confidence in the domestic solar market and the company’s strategic positioning within it. It also underscores the importance of integrated manufacturing in meeting future policy requirements and securing project pipelines.

India’s Solar Policy and Industry Growth

India’s solar industry has experienced rapid growth, driven by government policies aiming to boost domestic manufacturing and meet ambitious renewable energy targets. The ALMM framework, introduced in 2021 and updated in 2026, mandates the use of domestically sourced solar cells and modules in various projects, incentivizing local production.

Despite this, domestic cell manufacturing capacity has lagged behind module capacity, creating a supply bottleneck and increasing reliance on imports. The upcoming ALMM List-III for wafers and ingots, expected in June 2028, aims to further strengthen local upstream manufacturing, fostering industry consolidation and technological advancement.

Vikram Solar’s expansion aligns with these policy shifts, positioning it as a key domestic player capable of meeting the new compliance standards and supporting India’s renewable energy ambitions.

“Access to ALMM-compliant cells will be a critical factor for future project development and competitiveness in India’s solar market.”

— an anonymous researcher

Remaining Questions on Implementation and Market Impact

It is not yet clear how quickly Vikram Solar’s new capacity will ramp up to full operational levels or how the market will respond to the increased domestic cell supply. Additionally, the impact of the 2 GW sourcing agreement with Jupiter International on the company’s earnings and project competitiveness remains uncertain. The broader effects of upcoming policies, such as the finalization of ALMM List-III, are also still developing.

Next Milestones and Policy Developments

Vikram Solar is expected to complete its 9 GW cell capacity by December 2026, with the full impact on its market positioning to be assessed in the following quarters. The company’s expansion plans for module capacity will also continue through early 2027. Industry observers will monitor the implementation of ALMM policies and the progression of domestic upstream capacity, especially as the industry prepares for the June 2028 ALMM List-III rollout.

Key Questions

When will Vikram Solar’s new 9 GW cell manufacturing capacity be operational?

The company plans to commission the 9 GW capacity by December 2026.

How does this expansion relate to India’s solar policies?

The capacity increase supports compliance with India’s ALMM List-II policy and positions Vikram Solar favorably for future requirements under the upcoming ALMM List-III.

Will this expansion reduce Vikram Solar’s reliance on imported cells?

The new capacity and domestic sourcing agreements aim to increase local cell availability, reducing reliance on imports over time.

What are the implications for the Indian solar industry?

The expansion could accelerate industry consolidation, enhance domestic manufacturing, and support India’s renewable energy targets.

Are there any risks or uncertainties associated with this expansion?

Uncertainties include the pace of capacity ramp-up, the actual impact on earnings, and how policies like ALMM List-III will shape future market dynamics.

Source: PV Magazine