India Targets 30 GW Polysilicon by 2030 for Solar Security

For climate and energy stakeholders, India's 30 GW polysilicon target addresses a critical vulnerability: solar deployment can stall if upstream polysilicon imports are constrained. By setting a domestic capacity goal with a Rs 850 crore per GW capex assumption, the government is moving beyond utility-scale installation targets to lock in manufacturing resilience and lower carbon supply chains.

India's Ministry of New and Renewable Energy is developing a dedicated support scheme for domestic polysilicon manufacturing, targeting at least 30 GW of capacity addition by 2030. Renewable Energy Secretary Santosh Kumar Sarangi announced the plan on August 21, 2026, pegging the capital cost of a polysilicon plant with metallurgical-grade silicon at approximately Rs 850 crore per GW. The announcement signals a strategic escalation in India's solar manufacturing ambitions after the existing Production Linked Incentive (PLI) scheme, which bundled polysilicon with wafers, cells, and modules, is expected to yield only limited polysilicon capacity.

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At Rs 850 crore per GW, 30 GW of polysilicon capacity implies a cumulative investment requirement of roughly Rs 25,500 crore, or about $3 billion at current exchange rates.

Polysilicon is the foundational material for solar photovoltaic cells and remains one of the most capital-intensive and technically demanding segments of the solar value chain. China dominates global production, with historically over 80% of supply, giving it significant leverage over solar supply chains worldwide. India's existing solar manufacturing has grown rapidly in module assembly, but upstream ingot, wafer, and cell capacity has lagged, leaving domestic manufacturers reliant on imported polysilicon. By targeting 30 GW of polysilicon capacity, India would create a domestic feedstock base roughly aligned with its broader solar module manufacturing expansion plans, insulating its renewable energy program from supply shocks, price volatility, and geopolitical trade restrictions.

The economics are substantial. At Rs 850 crore per GW, 30 GW of polysilicon capacity implies a cumulative investment requirement of roughly Rs 25,500 crore, or about $3 billion at current exchange rates. The secretary emphasized that the high investment requirement was a central factor in designing support mechanisms. The government is exploring ways to support manufacturers to build facilities, though the specific subsidy amount and scheme structure are still under development. This cautious approach reflects lessons from the PLI scheme, where integrated tenders may favor lower-cost module assembly over capital-intensive upstream production, resulting in minimal polysilicon capacity awards.

From a market perspective, the new scheme could reshape global polysilicon trade flows. India currently imports most polysilicon from China, with smaller volumes from other Asian and Western suppliers. A credible 30 GW domestic capacity target could redirect billions of dollars of procurement toward Indian manufacturers and equipment suppliers. However, polysilicon plants have long construction cycles of three to five years, significant energy intensity, and complex chemical processing requirements. Achieving 30 GW by 2030 will require expedited clearances, reliable power supply, skilled workforce development, and perhaps phased commissioning starting around 2028. It may also necessitate collaboration with international technology providers, as polysilicon production know-how remains concentrated among a handful of global players.

Sarangi also addressed energy storage, noting India could meet the Central Electricity Authority's estimated requirement of about 411 GWh of battery storage by 2031-32 ahead of schedule. Current storage remains lower, but approximately 156 GWh of battery energy storage systems are in process or implementation through tenders and placed orders. He highlighted sodium-ion battery technology as potentially significant, pointing to diversification beyond lithium-ion as India scales storage. This storage data matters for polysilicon strategy because solar manufacturing and storage buildouts are interconnected: excess solar capacity requires storage to manage intermittency, and both sectors compete for capital, raw materials, and policy attention within the clean energy budget.