India’s Solar Imports Rise 14% QoQ in Q1 2026, Exports Continue to Decline

Modules comprised 90.2% of exports, while cells accounted for 69.1% of imports

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India imported solar cells and modules worth over $1.27 billion (~₹116 billion) in Q1 2026, a 2.8% year-over-year (YoY) decline from $1.3 billion (~₹112.9 billion) in Q1 2025, according to data from the Department of Commerce.

On a quarter-over-quarter (QoQ) basis, combined module and cell imports increased by 14.3% from over $1.11 billion (~₹98.8 billion). Solar module imports rose 81.2%, while cell imports declined 1.9% from the previous quarter.

The surge in imports highlighted the continuing imbalance within India’s domestic manufacturing ecosystem. While India’s ALMM-listed module manufacturing capacity expanded rapidly during the quarter, domestic cell manufacturing capacity remained significantly lower. By the end of March 2026, ALMM-listed module manufacturing capacity exceeded 173 GW, while solar cell manufacturing capacity stood at only around 26.5 GW. Subsequent additions pushed module capacity closer to 193 GW and cell capacity near 30 GW, but the upstream gap remained substantial.

Developers procuring modules for ALMM-compliant projects raised concerns about the limited domestic availability of cells, particularly for high-efficiency TOPCon products. As a result, project developers accelerated imports ahead of the ALMM List-II implementation deadline to avoid procurement delays, price volatility, and potential supply shortages.

The Ministry of New and Renewable Energy has also expanded the ALMM framework further by introducing ALMM List-III for wafers, effective from June 1,

The move reflects growing policy focus on reducing long-term dependence on imported upstream components such as wafers and cells.

Imported TOPCon modules remained more readily available for immediate procurement, particularly for commercial and industrial (C&I) projects operating outside strict DCR requirements. Developers and EPC firms accelerated procurement to avoid potential supply tightness, delivery delays, and pricing volatility ahead of the June 2026 ALMM List-II implementation.

The Directorate General of Foreign Trade’s Renewable Energy Equipment Import Monitoring System also contributed to accelerating procurement during Q1 2026, as developers and importers advanced shipments ahead of tighter import-monitoring and procedural-oversight requirements.

China remained the largest source of India’s solar imports, accounting for 39.7% of total shipments, followed by Indonesia (23.2%), Vietnam (12.6%), Thailand (10.8%), and Ethiopia (4.6%). Laos PDR, Malaysia, and Singapore also contributed smaller shares of imports.

The market also saw continued diversification beyond China, with imports from Southeast Asian countries such as Indonesia, Vietnam, and Thailand increasing during the quarter. Buyers increasingly diversified sourcing strategies to reduce concentration risk, improve pro