Solar Panels to Become Costlier; Restrictions Planned on Imports from China

Solar panels are currently gaining significant traction in India, but reports suggest they may soon become more expensive. This could be the result of a new decision by China. Let’s take a look at what this new decision entails.

Solar panels are becoming increasingly popular in India, with many people adopting them to find relief from rising electricity bills. However, reports now indicate that solar panels could soon become more expensive—a shift largely driven by a new move from China. China has proposed imposing bans or strict restrictions on the export of 12 key technologies used in the manufacturing of solar panels.

This decision by China is expected to impact the solar panel manufacturing process in India. That said, for those planning to install solar systems on their rooftops, there is some immediate relief; experts believe it is unlikely that the prices of solar systems will see a sharp, immediate increase.

What is China’s plan?

China is the world’s largest producer of solar panels and related technologies. Many nations, including India, rely on Chinese technology and machinery for solar panel production. China has now proposed placing controls on the export of specific technologies used in the manufacturing of these panels.

China is proposing restrictions on the following:

Advanced technology for manufacturing solar cells.
Technology for producing silicon wafers.
Technology for polysilicon production.
Advanced solar cell technologies, such as TOPCon and HJT.

It is important to note that this is currently only a proposal from China; no final decision has been reached. Feedback and suggestions from the public and companies are being invited until November 15, 2026. Notably, China has not proposed a complete ban on the export of finished solar panels; the primary concern centers on the technologies and machinery used to manufacture them.

Will solar systems become more expensive in India? This is the most significant question for those in India considering the installation of solar systems on their rooftops. According to experts, there is unlikely to be any major surge in the prices of solar systems in the near future. The primary reason for this is the rapid expansion of solar panel manufacturing capacity within India. The government is actively promoting the domestic solar industry, while initiatives like the 'PM Surya Ghar: Muft Bijli Yojana' (PM Solar Home: Free Electricity Scheme) have driven an increase in the demand for solar systems across the country.

India must become self-reliant in solar panels

Experts suggest that India now needs to achieve self-reliance in the solar sector. Simply establishing factories within the country will not suffice; India must develop its own technology. This requires increased investment in research and development (R&D). Experts believe that if India makes rapid progress in these areas, its dependence on China could diminish in the coming years.