South Asia’s Solar Power Journey: It’s 2:13 PM on a hot Tuesday afternoon in July. The sun is shining across South Asia and burning down on rooftops in Delhi, warming the rice paddies in Bangladesh, and gleaming across Sri Lanka’s coastline. You’re probably scrolling through your phone, watching videos of solar-powered homes in Europe or electric cars gliding silently through Chinese cities. It all looks futuristic and affordable until you realize that bringing that same clean energy tech to South Asia costs up to 50% more than importing it from China.

That’s not a small difference it’s a roadblock in the global race to go green. China dominates solar manufacturing, producing nearly 80% of the world’s solar panels and it only because of massive factories, cheap electricity, and decades of research. Meanwhile, countries like India, Bangladesh, and Vietnam are home to more than 1.8 billion people and 25% of the world’s solar potential are struggling to catch up.

So what’s the problem? The solar panels made in this region are expensive, outdated, and heavily dependent on imports. But here’s the good news: this situation can be turned around. With the right investments, policies, and innovation, South Asia can become a clean energy leader. Let’s break down the key problems and the solutions that can help fix them.

The High Cost Problem

The biggest hurdle for South Asia’s solar future is the high cost of making panels. In China, the cost of electricity in industrial zones like Xinjiang is just $0.07 per kilowatt-hour, helping keep production prices low. In contrast, India pays around $0.09, and some other countries in the region pay even more.

A big part of the cost comes from polysilicon, the main material used in solar cells. It accounts for nearly 40% of total panel costs. Unfortunately, South Asia imports nearly all its polysilicon. India alone spends $2-3 billion every year on importing it, while Bangladesh and Vietnam are almost entirely dependent on foreign suppliers. Add to that the shipping and handling costs, and it’s easy to see why panels here are more expensive.

There’s also the issue of new technologies like perovskite solar cells, which promise to reduce costs by up to 40%. But since production is still small-scale in South Asia, the prices remain high. According to a 2024 Southeast Asia solar market report, these advanced technologies are still out of reach for most local manufacturers.

Falling Behind in Technology

Another major problem is that South Asia is lagging behind in solar technology. China has invested over $50 billion in research and development (R&D) since 2011. Its panels now reach an efficiency of 22%, meaning they convert more sunlight into electricity. By comparison, India’s average efficiency is around 17-18%, and Vietnam’s quality is inconsistent.

New solar materials like perovskites are even more efficient, with lab results showing up to 26.1% efficiency in 2024. Thin-film solar panels are also promising, especially in hot and sunny climates, with energy payback times as low as 0.6 years. But South Asia hasn’t invested enough in R&D to take advantage of these technologies.

There’s also a climate challenge. Perovskite cells tend to degrade faster in hot and humid conditions common across the region. A study from 2022 noted that these cells lose about 2-3% of their power each year. Without focused local research to improve durability in such environments, the region will keep trailing behind.

Stuck on Imports

The third challenge is that South Asia is too dependent on imports. This is risky and expensive. China controls 90% of the global polysilicon supply. In 2020, floods in China reduced production by just 4% but prices tripled between 2020 and 2021.

Vietnam and Bangladesh rely completely on imported solar components. India, although a major solar installer (with over 15 GW in FY24 to nearly 21 GW in FY25), lacks the upstream manufacturing capacity for key parts like wafers and cells. This means most of the economic benefit like jobs, profits, and innovation goes abroad.

The risks don’t end there. In 2025, the United States imposed 3,521% tariffs on Southeast Asian solar panel exports, citing concerns about Chinese materials routed through these countries. This shook up global markets and revealed how fragile the supply chain really is.

Fixing the Problem

Now let’s talk about solutions. South Asia doesn’t have to stay stuck. There are three big moves that can transform this region into a solar powerhouse.

1. Build Local Polysilicon Plants

The first step is to make polysilicon locally. This requires large investments around $1-2 billion for a mid-sized plant. But it’s worth it.

Imagine a plant in Gujarat, India, or in Vietnam’s coastal provinces, powered by local solar or hydropower, keeping energy costs under $0.08/kWh. This could directly compete with China.

Even a 100 MW pilot project could reduce import dependency by up to 30%, while creating hundreds of skilled jobs. Government support is key here- subsidies, low-interest loans, and training programs can make such ventures viable. In the long term, this can save the region billions of dollars.

2. Invest in New Solar Tech

South Asia must also invest in next-generation solar tech especially perovskite and thin-film cells. These technologies are lighter, cheaper, and better suited for certain environments.

Doubling India’s R&D budget from $500 million to $1 billion, and creating partnerships with global leaders like Oxford PV, can help solve issues like humidity degradation. Incentivizing pilot projects say, 10 MW production lines could bring costs down to $0.15 per watt, which is competitive globally.

Vietnam, with its strong electronics sector, could also become a leader here. By producing panels that are perfect for urban rooftops or rural homes, South Asia can carve out a niche market.

3. Scale Up Local Manufacturing

Finally, South Asia needs to scale up its own solar panel production. A 500 MW manufacturing hub spread across India, Bangladesh, and Vietnam can take advantage of cheap labour (about $2-3/hour versus China’s $4) and growing domestic demand.

Policies that mandate 40% local content, like India’s Production Linked Incentive (PLI) scheme, can help boost investment. A regional goal of 50 GW of annual production by 2035 would not only reduce import bills by $5-10 billion a year but also create hundreds of thousands of jobs.

Why It Matters

This isn’t just about saving money, it’s about energy independence and climate resilience. If South Asia can reduce its dependence on imports, it becomes stronger economically and politically. It also contributes to the global fight against climate change.

By making smart investments now, the region could:

• Create over 750,000 new jobs

• Cut 300 million tons of CO₂ emissions annually

• Save up to $20 billion every year on solar-related imports

And all of this is possible using the sunlight already shining down on the region.

Future Challenges 

Of course, it won’t be easy. Setting up polysilicon plants takes years and billions in investment. R&D in new tech can fail. Perovskite panels contain lead, which raises environmental concerns, and polysilicon production is energy-intensive.

But these challenges can be tackled. For example, recycling targets of 20% by 2040 can reduce the environmental footprint. Advanced materials research could eliminate toxic elements. And with strong policies and international partnerships, risk can be minimized.

Also, let’s not ignore geopolitics. China is not just a competitor, it’s also a major trade partner. Border tensions and policy shifts could impact supply chains. South Asia must tread carefully while reducing dependency.

It’s time for South Asia to move from ambition to action. The region is blessed with abundant sunlight, a large workforce, and a rising demand for clean energy but these strengths need direction. Governments must step up with bold policies that prioritize solar infrastructure, offer generous subsidies, and fund research in next-generation technologies like perovskite and thin-film solar cells. At the same time, industries should build partnerships with global innovators to bring advanced solar tech into local markets, while also investing in scaling up manufacturing capacity. Stronger domestic supply chains will reduce the region’s dependence on imports and cushion it against global price shocks or geopolitical tensions.

But change won’t come from top-down efforts alone. Communities, too, have a critical role to play. Local households, institutions, and start-ups must actively adopt rooftop solar, advocate for clean energy access, and participate in regionally rooted energy projects. This collective effort from policy to production to the public can turn South Asia into a leader in the global clean energy transition. The sun already shines brightly across our rooftops and fields. Now is the moment to turn that light into lasting power for our homes, our economy, and our future.