New Delhi: The Ministry of New and Renewable Energy (MNRE) has urged financial institutions to adopt a calibrated and well-informed approach while evaluating funding proposals across the India solar manufacturing ecosystem, reaffirming its commitment to strengthening the country’s position in the global solar value chain.
India has already achieved nearly 50% of its installed electricity capacity from non-fossil fuel sources, accomplishing the milestone five years ahead of the Nationally Determined Contributions (NDC) timeline under the Paris Agreement.
As of 31 October 2025, the country’s installed non-fossil fuel capacity stands at around 259 GW, with an addition of 31.2 GW during the current financial year up to October 2025.
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India Solar Manufacturing Ecosystem and Financing Clarity
Addressing reports suggesting that lenders were advised to pause fresh financing for renewable energy projects due to overcapacity concerns, MNRE clarified that no such advisory has been issued.
The Ministry has not directed financial institutions to stop lending to either renewable energy power projects or renewable energy equipment manufacturing facilities.
Instead, MNRE has shared detailed information with the Department of Financial Services and major non-banking financial companies such as PFC, REC, and IREDA regarding existing domestic manufacturing capacities across the solar PV value chain.
These include solar modules, upstream components such as solar cells, ingots-wafers, polysilicon, and ancillary segments like solar glass and aluminium frames.
The intent, MNRE stated, is to enable lenders to make informed decisions while assessing proposals within the India solar manufacturing ecosystem, and to encourage diversified financing beyond solar PV module manufacturing into upstream and ancillary segments.
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Policy Support Driving India Solar Manufacturing Ecosystem Growth
The Government of India continues to focus on building a self-reliant and globally competitive India solar manufacturing ecosystem.
This effort is supported by policy initiatives such as the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules and measures aimed at providing a level playing field for domestic manufacturers.
These interventions have played a catalytic role in expanding solar module manufacturing capacity in the country from just 2.3 GW in 2014 to approximately 122 GW currently enlisted under MNRE’s Approved List of Models and Manufacturers (ALMM).
MNRE noted that this growth reflects the collective efforts of the industry, state governments, and the central government.
The Ministry reiterated its commitment to continued policy support, infrastructure development, and innovation to ensure that India’s solar sector remains inclusive, competitive, and future-ready, while contributing to the national objective of achieving 500 GW of non-fossil fuel capacity by 2030 and supporting global decarbonisation goals.
