India solar cell shortage crisis

India's push for domestic solar cell manufacturing has backfired, causing a severe shortage of solar cells. Since June 1, 2026, rules requiring domestic cells have forced nearly a third of India's 140 small- and medium-sized solar panel makers to halt production, threatening thousands of jobs and nearly $4 billion in investment. Manufacturers face 6-8 month waits for domestic cells, which cost almost double those from China. China's export curbs on solar manufacturing technology hinder India's ability to scale up cell production. The shortage delays solar projects, raises costs, and jeopardizes India's 2030 target of 500 GW non-fossil fuel capacity. The government extended the deadline to December 2026 for some projects, but relief is limited.