India's solar module capacity surges to 233 GW, but utilization drops to 35–40%

India's solar manufacturing sector is facing a severe overcapacity crisis as installed production capacity has nearly doubled, leaving factories operating at less than half their potential and risking margin compression and stranded assets.

First covered Sep 1, 2026 · 3:17 AM PT · 1 article · no longer in the live window

India's solar module capacity surges to 233 GW, but utilization drops to 35–40% — Image via pv-magazine.com

Coverage

25d PV Magazine India’s solar module overcapacity pushes factory utilization to 35–40% — India’s solar module manufacturing capacity has surged to 233 GW, outpacing domestic demand and pushing factory utilization down to 35–40%.

More coverage from around the web

saurenergy.com India’s 233 GW Solar Manufacturing Capacity Runs at Just 35–40% Utilisation: IEEFA

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business-standard.com India's solar power boom faces regional imbalance, manufacturing glut | Industry News - Business Standard

woodmac.com India's solar manufacturing capacity set to exceed 125 GW, creating overcapacity challenge as inventory reaches 29 GW | Wood Mackenzie

icra.in Overcapacity in solar module manufacturing industry to ...

Appeared in: 2026-09-01 (#2) · 2026-09-02 (#13)

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