India has embarked on significant initiatives to enhance its solar manufacturing capabilities. One of the cornerstone efforts is the Production Linked Incentive (PLI) scheme, which provides financial incentives to manufacturers aiming to increase the production of solar PV (photovoltaic) modules. This initiative is pivotal in promoting domestic manufacturing and reducing the country’s dependency on imports.
The PLI scheme is designed to foster the growth of solar manufacturing by offering substantial financial incentives to manufacturers. By establishing fully integrated solar PV manufacturing units, the scheme aims to create a self-sufficient ecosystem. This includes boosting the production capacities for essential components such as polysilicon, wafers, cells, and modules.
As part of the PLI scheme, Letters of Award have been issued to establish approximately 48,337 MW of integrated solar PV manufacturing units. This encompasses the entire solar value chain, from polysilicon to ingot-wafer, as well as cell and module manufacturing.
According to projections by ICRA, India’s solar PV module manufacturing capacity is expected to exceed 60 GW by 2025, a significant increase from the current level of around 37 GW. This anticipated growth is largely attributed to improved backward integration into cell and wafer manufacturing processes.
The Approved List of Models and Manufacturers (ALMM) order plays a crucial role in promoting domestic manufacturing. By mandating the use of approved solar PV models and manufacturers for government-supported projects, this policy encourages the utilization of locally manufactured solar modules, thereby reducing reliance on imports.
Despite the positive outlook, several challenges remain in scaling up India’s solar manufacturing. Key issues include dependency on imports for essential raw materials such as polysilicon, the need for timely implementation of projects under the PLI scheme, and the imperative to maintain cost-competitiveness amidst fluctuating global prices.
In conclusion, India’s initiatives to bolster its solar manufacturing base are centered on enhancing domestic production capacities, providing financial incentives, and fostering self-reliance within the solar energy sector. As these efforts align with global renewable energy trends, India is poised for a significant transformation in its solar landscape.
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