The Approved Models and Manufacturers of Solar Photovoltaic Modules Order is an executive directive issued by the Ministry of New and Renewable Energy (MNRE) in India, effective from April 1, 2019. This order mandates that solar module manufacturers voluntarily undergo inspections of their facilities by the National Institute of Solar Energy to be listed as 'approved' manufacturers. This initiative aims to enhance quality and reliability within the domestic solar manufacturing sector.
This order was implemented to address India's heavy dependence on imported solar modules, particularly from China. It seeks to promote local manufacturing of high-quality solar panels, protect the domestic industry from low-quality imports, and encourage the production of solar modules within the country.
Manufacturers listed as approved can participate in government tenders for flagship solar energy programs, such as the PM Surya Ghar Muft Bijli Yojana and the PM KUSUM scheme. These programs involve substantial subsidies and incentives. Additionally, being on the approved list makes them eligible for the Production Linked Incentive Scheme, which provides financial incentives to boost domestic solar panel manufacturing.
The rules are designed to stimulate domestic production, thereby reducing India's reliance on imports. By ensuring that only certified manufacturers can supply to major government projects, the initiative encourages local manufacturing, which could lead to a gradual decrease in imports over time.
This order supports India's ambitious solar energy targets, including achieving 280 GW from solar power by 2030. By promoting domestic manufacturing, it ensures a steady supply of solar panels and components, which is crucial for meeting these targets.
One concern is whether India's existing manufacturing capacity can meet the anticipated surge in demand driven by government projects and incentives. Furthermore, uncertainties regarding global solar market dynamics, especially potential changes in trade policies affecting imports and exports of solar components, also pose challenges.
The government expects a significant rise in domestic manufacturing capacity starting this year. This growth will likely be supported by an increased number of certified manufacturers and continued incentivization of local production through various government schemes and projects.
Foreign companies can participate if they establish manufacturing facilities in India and pass the necessary inspection to be listed as approved manufacturers. This approach promotes foreign investment in India's solar sector while ensuring technology transfer and quality production.
Q1. What is the main goal of the MNRE solar order?
Answer: The main goal of the MNRE solar order is to enhance the quality and reliability of solar module manufacturing in India, reducing dependence on imports and promoting local production.
Q2. How does this order support government solar programs?
Answer: The order allows approved manufacturers to participate in government solar programs, providing them access to substantial subsidies and incentives essential for growth.
Q3. What challenges might manufacturers face under this order?
Answer: Manufacturers may face challenges related to meeting the increased demand for solar modules and uncertainties in the global market that could affect trade policies.
Q4. How does the order affect India’s renewable energy goals?
Answer: The order plays a crucial role in achieving India's renewable energy goals by ensuring a consistent supply of domestically produced solar panels necessary for meeting ambitious targets.
Q5. Can foreign companies contribute to India's solar sector?
Answer: Yes, foreign companies can contribute by establishing local manufacturing facilities and passing inspections, facilitating technology transfer and enhancing production quality.
Question 1: What is the purpose of the MNRE solar order?
A) To increase solar imports
B) To promote local solar manufacturing
C) To ban foreign companies
D) To reduce energy consumption
Correct Answer: B
Question 2: What is one benefit for manufacturers on the approved list?
A) Ineligibility for government schemes
B) Access to government tenders
C) Increased import tariffs
D) Mandatory export requirements
Correct Answer: B
Question 3: How does the order impact solar energy targets?
A) It has no impact
B) It hinders target achievement
C) It aids in meeting ambitious targets
D) It reduces solar production
Correct Answer: C
Question 4: What is a concern regarding this order?
A) Increased solar panel prices
B) Uncertainty in global market dynamics
C) Decrease in local manufacturers
D) Reduced government support
Correct Answer: B
Question 5: Can foreign companies participate in India's solar market?
A) No, it is restricted
B) Yes, with local facilities
C) Only through partnerships
D) Only for research purposes
Correct Answer: B
Question 6: What is a key goal of the MNRE order?
A) To increase solar imports
B) To improve module quality
C) To reduce market competition
D) To ban local manufacturers
Correct Answer: B
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