India's Solar Industry Advances with New Module Production and Storage Push

Sunkind India has signed a procurement agreement for up to 1 GW of domestic solar cells worth between ₹1,200 crore and ₹1,500 crore and is setting up a 1 GW solar‑module manufacturing line near Jaipur, Rajasthan, with commercial production expected next month. The deal is part of a broader expansion of India's renewable‑energy supply chain and aligns with government policies that encourage domestic content in solar equipment.

At the same time, industry analysts note that standalone solar is losing its edge because its generation peaks during daylight while Indian demand peaks in the evening. A February 2025 advisory from the Central Electricity Authority now requires all new solar tenders to include at least two hours of storage equal to 10 % of project capacity. New procurement models such as firm and dispatchable renewable energy (FDRE), round‑the‑clock and peak‑power supply tenders are favouring hybrid solar‑plus‑storage configurations, which are seen as more cost‑effective than new thermal plants. The shift is reshaping pricing, with solar’s market capture rate falling and storage spreads widening.