01/08/2026
India’s Solar Manufacturing Boom Has Become a Profit Boom
Indian solar modules are reportedly selling at nearly twice the international benchmark in protected market segments. The difference is ultimately paid by solar developers, DISCOMs, businesses and households.
Meanwhile, the combined revenue of India’s five leading listed solar manufacturers surged from ₹6,362 crore in FY2022 to ₹48,762 crore in FY2026—a 7.7× increase. EBITDA margins reached 34.3% for Emmvee, 30.4% for Premier Energies and 22.3% for Waaree Energies.
These are extraordinary returns for a largely commoditised product.
ALMM, DCR, customs duties and PLI incentives were introduced to establish domestic manufacturing and improve energy security. That objective was justified. But when protection enables windfall gains while increasing solar tariffs and the cost of rooftop systems, the policy begins working against the energy transition.
India should support competitive manufacturing—not permanently protected profits. Future benefits must be linked to falling prices, domestic value addition, upstream integration, R&D and globally competitive technology.
The consumer should not finance inefficient manufacturing indefinitely.
