MNRE Plans Polysilicon Incentive Scheme to Strengthen Domestic Solar Manufacturing

The Ministry of New and Renewable Energy (MNRE) is considering an incentive scheme to promote domestic polysilicon manufacturing and reduce India’s dependence on imports, particularly from China.

Speaking at the CII International Energy Conference and Exhibition in New Delhi, Union New and Renewable Energy Secretary Santosh Kumar Sarangi said that the proposed support scheme would encourage manufacturers to expand into deeper stages of the solar manufacturing value chain.

India has crossed 300 GW of non fossil fuel based power generation capacity as of the end of July 2026 and is progressing towards its target of 500 GW by 2030, Sarangi said.

He noted that India has emerged as the world’s second largest solar module manufacturing hub, with more than 213 GW of installed module manufacturing capacity. Solar cell manufacturing capacity has reached 32 GW, while the government expects this to increase to 100 GW within the next year.

The secretary also said that India is targeting at least 80 GW of ingot and wafer manufacturing capacity by June 2028. Strengthening polysilicon production would further deepen the domestic solar manufacturing ecosystem and reduce reliance on imported upstream materials.

In the wind sector, around 85 percent of manufacturing is already indigenised, with India having about 24 GW of wind manufacturing capacity.

Sarangi also highlighted the growing competitiveness of renewable energy through round the clock power projects. The Solar Energy Corporation of India recently conducted an RE round the clock bid offering 90 percent assured power availability in each time block, with solar accounting for no more than 50 percent of daytime supply. The discovered tariff stood at INR 5.25 per unit.

According to Sarangi, the tariff demonstrates the increasing ability of developers to combine solar, wind and energy storage technologies to provide reliable electricity over extended periods.

He further said that greater deployment of renewable energy and round the clock capacity could help reduce the average power procurement cost for distribution companies from around INR 5.20 per unit currently to INR .80 per unit.

Sarangi also stressed the importance of physical infrastructure and compatible regulatory frameworks for cross border electricity trade. He said that initiatives such as One Sun, One World, One Grid could enable countries across different time zones to complement each other by sharing renewable power.

India, he added, will continue to support regional energy cooperation and share its renewable energy experience with neighbouring countries, including Bhutan.