10 Years of Make in India: Solar PV Module Manufacturing Capacity Surges to 67 GW from 2.3 GW
India’s solar PV module manufacturing capacity has increased to 67 GW from a mere 2.3 GW in 10 years since the Make in India initiative was launched. Another 48 GW is in the pipeline, as the government continues to incentivise domestic production of solar panel components.
September 26, 2024. By Mrinmoy Dey
Furthermore, over 48 GW of fully or partially integrated solar PV module manufacturing projects are currently under implementation under the solar PLI scheme, said the ministry in a statement further adding that once completed, these projects will attract an investment of approximately INR 1.1 lakh crores.
“The country has seen rapid growth in solar PV module production capacity, jumping from 8 GW in 2021 to 67 GW per year in the last 3.5 years alone,” it said.
Union Minister for New and Renewable Energy Pralhad Joshi posted on the micro-blogging platform X (formerly Twitter), “India's renewable energy sector has contributed immensely to the #10YearsOfMakeInIndia. From PLI to VGF, we are extending all possible support to our domestic industries. We are committed to establishing India as a major global player in the complete value chain of clean energy solutions.”
The ministry affirmed that one of the key focuses of the Government is to support and incentivise domestic manufacturing in the renewable energy sector.
“Several measures have been taken by the Union Government to promote the domestic manufacturing of renewable energy equipment, such as solar PV modules, cells, and upstream components like ingots, wafers, and polysilicon. These efforts also include the manufacturing of wind turbines, electrolysers for green hydrogen production, and battery energy storage systems for utility-scale electricity storage applications,” outlined the statement.
The Government's efforts span financial, fiscal, and policy measures aimed at bolstering domestic production. Financial incentives include the Production Linked Incentive (PLI) scheme for setting up fully or partially integrated manufacturing units for solar PV modules and upstream components.
Additional support measures include Viability Gap Funding (VGF) for stationary Battery Energy Storage System projects and incentives for manufacturing electrolysers and green hydrogen production under the National Green Hydrogen Mission.
Fiscal incentives include concessional customs duties on inputs required for domestic manufacturing, waivers on import duties for specific capital goods needed for solar PV cell and module production, and impositions of basic customs duties on imports of solar PV modules, cells, and inverters.
Further, policy measures have been taken through provisions such as the Domestic Content Requirement (DCR) in schemes like PM Surya Ghar: Muft Bijli Yojana, PM-KUSUM, and CPSU Scheme Phase-II, where Government subsidies are provided.
Other policies include linking PLI amounts to local value addition, Quality Control Orders for solar equipment, and approved lists of models and manufacturers for solar and wind technologies.
“Solar PV manufacturing remains a significant focus of the Government’s efforts. The Government is committed to making India self-reliant (Atmanirbhar) in solar PV manufacturing and establishing India as a major player in the global value chain. This commitment is demonstrated by the INR 24,000 crores outlay for the PLI Scheme for High-Efficiency Solar PV Modules and additional policy interventions, such as the imposition of basic customs duties and domestic content requirements,” noted the statement.
The solar PLI scheme will also bring cutting-edge solar PV module manufacturing technology to India, reducing the country's dependence on imports. With the solar PLI scheme and the Government's supportive policy framework, India is projected to achieve 100 GW per year of solar module production capacity by 2026, which will not only satisfy domestic demand but also contribute to earning foreign exchange through exports.
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