Modi teases new support as India doubles down on domestic solar manufacturing efforts

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Tata.

India will provide additional support for domestic solar equipment manufacturers to help meet the country’s soaring renewable energy generation capacity, Prime Minister Narendra Modi has said.

With demand for domestically manufactured solar cells and modules expected to be around 36GW over next three years, Modi said the government will offer production-linked incentives for high-efficiency solar modules as it aims to make India “a global manufacturing hub” in the renewables sector.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Speaking at the RE-Invest 2020 conference, Modi yesterday announced that India’s green energy capacity will rise to 220GW by 2022, far higher than its 175GW target. Currently, renewables account for 36% of the country’s total capacity, at 136GW.

“There are huge renewable energy deployment plans for the next decade,” Modi said, adding that these are likely to draw an investment of around US$20 billion per year.

While no further details were given on the PV manufacturing support, the news follows the recent announcement that solar modules will form one of ten sectors included in a production-linked incentive scheme to help make domestic players more competitive internationally.

The package includes INR45 billion (US$603 million) of investment over five years to support the domestic development of high-efficiency PV modules as well as INR181 billion (US$2.42 billion) to boost the manufacture of advance chemistry cell batteries. The government said the initiative “will incentivise domestic and global players to build large-scale solar PV capacity in India”.

Modi said yesterday that ease of doing business is a “top priority” for the government as he called on foreign businesses and developers to invest in India. “We are showing to the world that sound environmental policies can also be sound economics,” he added.

As well as the new production-linked incentive scheme, other moves by India to boost its domestic PV manufacturing industry include an extension of its safeguard duty on solar equipment for another year as well as the creation of equipment production zones near major ports.

Meanwhile, reports suggested state-owned companies could be instructed to establish a polysilicon supply chain in the country, and the government is also considering a new basic customs duty on module and cell imports from China, initially set at 20% before rising to 40% on certain products next year.

Read Next

September 18, 2025
CERC is finalising guidelines for virtual power purchase agreements (vPPAs) to unlock financing for over 40GW of uncontracted renewable capacity.
September 18, 2025
Indian PV makers have welcomed the government’s plan to add solar wafers to its ALMM List-III from June 2028.
September 17, 2025
Spanish renewables developer and operator Acciona Energía has commissioned its 412MWp Juna solar PV plant in Kawani village in the western state of Rajasthan. 
September 17, 2025
Struggling Swiss solar manufacturer Meyer Burger has formally entered into a debt moratorium, with the possibility of rescuing the entire group now looking unlikely.
September 16, 2025
IB Solar is investing INR30 billion (US$340 million) in a 4GW TOPCon solar cell and module manufacturing plant in Jewar, Uttar Pradesh.
September 15, 2025
Norwegian energy firm Statkraft has agreed to divest a portion of its renewable energy portfolio to Serentica Renewables.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA