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India is facing a sharp ~33% spike in solar module prices since late December, driven by costlier silver & aluminium, a weaker rupee, and China-side supply chain curbs. Module/cell offers have climbed from ~3.5¢/Wp to ~5.5¢/Wp, squeezing bids and pushing up capex for ongoing builds, ScanX reports. The shock touches ~93 GW of solar capacity currently under construction and could jeopardise projects without firm PPAs, raising the risk of higher end-tariffs for new contracts.
Sector watchers add that the price spike lands amid a tricky backdrop: India has rapidly expanded module capacity, but cell/wafers remain import-heavy, and analysts have warned of policy and supply whiplash, from China export bottlenecks to domestic overcapacity concerns, making pricing volatile into 2026.
Bottom line: Unless input prices cool or supply normalises, developers may reprice bids, seek timeline relief, or pause award signings to protect returns, especially on projects lacking long-term offtake cover.
