Clean Energy & National Policy

The Great Solar Assembly Illusion: How Government Policies Squeezed Out the True Builders

By Kunwer Sachdev • Thought Leadership • 5 Min Read

When I pioneered solar and power backup in India decades ago, there was no national solar mission, no state-backed capital subsidy, and no protective tariff wall. We didn’t wait for a government handout or a policy blueprint drafted in an air-conditioned room. We went to the ground, built the technology from scratch, filed patents, designed the manufacturing lines, and created an entire industry that took clean energy to ordinary Indian homes and 90+ countries.

Today, looking at how Indian solar manufacturing policy has evolved, an uncomfortable and alarming truth must be told: We haven’t built a technological manufacturing powerhouse; we have built a tariff-protected assembly ring.

1. The Missing R&D: Importing Machines, Not Innovation

When you examine the explosive growth of India’s multi-gigawatt solar capacity touted in government press releases, a fundamental question must be asked: Where is the indigenous technology?

Global & Chinese Solar R&D

2.0%+ of Revenue

Poured into proprietary research, cell architecture, and efficiency breakthroughs.

Indian Domestic Solar R&D

0.1% Dismal Spend

Virtually zero investment in fundamental silicon or cell-level research.

Operator at electroluminescence solar panel test station in an Indian assembly plant — End-of-line inspection looks sophisticated—but EL testing on imported lines is still assembly capability, not indigenous cell R&D.

The Turnkey Dependency

We import automated production lines, technological blueprints, and raw silicon wafers straight from China. We bolt the machines down on massive land footprints, assemble the modules, slap a “Made in India” label on them, and call it self-reliance.

Worker at Ib SOLAR operating an automated assembly machine with Chinese-language interface — Turnkey dependency in plain sight: an Indian-branded plant running automated equipment with foreign-language controls.

Imported MS40 Multi Busbar Cell Soldering Stringer with Chinese safety labeling in a solar assembly plant — Typical turnkey assembly infrastructure: an imported multi-busbar cell soldering stringer with Chinese safety labeling—assembly depth without technology ownership.

That is not manufacturing depth. That is high-volume assembly wrapped in a national flag. If the foreign supply chain for equipment or raw material stumbles, our entire manufacturing house of cards stalls.

2. Policies That Killed the Small Builder to Protect the Few

When the domestic solar industry struggled to compete organically, the government rolled out heavy protectionist instruments—such as the Approved List of Models and Manufacturers (ALMM) and aggressive Anti-Dumping Duties (ADD).

The stated intent was noble: foster domestic manufacturing. But the practical reality was a masterclass in exclusion:

The Moat for an Oligopoly

These policies were engineered with compliance costs and capital-expenditure thresholds so massive that they effectively squeezed out thousands of small-scale, independent manufacturers and grassroots innovators.

The Chosen Few & The Gujarati Network

The entire ecosystem of large-scale solar production became heavily concentrated in the hands of traditional business houses and massive corporate groups rooted in the commercial networks of Gujarat:

Adani Solar

Led by Gautam Adani, with massive manufacturing bases anchored in hubs like Mundra, Gujarat.

Waaree Energies

Led by the Doshi siblings (Hitesh Doshi & brothers), anchored across Surat, Chikhli, and Tumb in Gujarat.

Goldi Solar

Led by Capt. Ishver Dholakiya, headquartered directly in Surat, Gujarat.

Vikram Solar

Driven by the Chaudhary family, tracing commercial roots back to business networks of Gujarat.

Instead of democratizing industrial growth and encouraging a thousand small inventors to build, state policy created a closed-door oligopoly driven by established business networks that knew how to work the corridors of power.

3. The Alarm for India: Where Are the Hardware Innovators?

When young Indian entrepreneurs look at the landscape today, what lesson are they being taught?

Software vs. Hard-Tech: If you build software or a delivery app, you are chased by venture capital.

The Hard-Tech Reality: But if you try to build a hard-tech manufacturing enterprise, you face a hostile regulatory environment, an impossible capital barrier, and the constant threat of being wiped out by an insolvency system that treats 30 years of industrial sweat as a ledger entry. See also: how IBC and banks destroy manufacturing entrepreneurs.

They see that true manufacturing innovators who hold patents and know how to wire a shop floor are sidelined, while capital-heavy giants dominate through lobbying, scale, and tariff walls.

“If India truly wants to achieve self-reliance and win the global clean energy race, we must stop measuring success by gigawatt press releases and protectionist tariffs.”

— Kunwer Sachdev

The Questions the Government Must Answer

How can an industry claim leadership when it spends 0.1% on R&D and owns virtually none of the core cell technology?
When will policy stop protecting a privileged oligopoly and start supporting the true, grassroots hardware innovators who want to build India’s manufacturing backbone from the shop floor up?

Kunwwer.ai

For hardware founders navigating regulatory, legal (IBC/NCLT), and manufacturing-scale challenges, explore AI tools and Legal Shield on Kunwwer.ai.

Frequently Asked Questions

Why does the article claim India has a “solar assembly ring” rather than true manufacturing?

Despite high gigawatt capacity claims, domestic solar manufacturers spend only 0.1% of revenue on R&D compared to 2%+ globally. Core technological components—such as automated production lines, silicon wafers, and cell blueprints—are largely imported, leaving domestic plants focused primarily on assembling imported inputs rather than innovating core technology.

How have policies like ALMM and Anti-Dumping Duties affected smaller solar builders?

High compliance costs and capital expenditure thresholds associated with the Approved List of Models and Manufacturers (ALMM) and protective duties created steep entry barriers. This effectively squeezed out small-scale independent manufacturers and grassroots inventors, favoring large, capital-heavy corporate groups.

What is the risk of relying on foreign turnkey production lines for solar panels?

Relying on turnkey equipment and imported raw materials creates supply chain vulnerability. If foreign supply lines for wafers, raw silicon, or machinery face disruptions, domestic assembly operations stall due to a lack of indigenous technological depth.

How can Indian policy shift from protecting assembly to building true manufacturing capability?

Policy must incentivize indigenous R&D, patent creation, and shop-floor hardware innovation rather than relying solely on tariff walls. Lowering regulatory barriers for small hard-tech enterprises and supporting grassroots hardware innovators are key steps toward self-reliance.

Kunwer Sachdev

The Inverter Man & Solar Man of India. Entrepreneur, Founder of Su-Kam, Mentor at Su-vastika, and Founder of Kunwwer.ai with 106 technology filings. Read his story →

Disclaimer: Kunwer Sachdev exited Su-Kam Power Systems Ltd. in 2019 and holds no association with the company since. Any current dealings with Su-Kam are solely with its current management. Full disclaimer →

Disclaimer: Kunwer Sachdev exited Su-Kam in 2019 and is not responsible for any activity of the company since. Anyone dealing with Su-Kam does so solely with its current management. Full disclaimer →