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

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
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.

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

PV Tech Premium
September 23, 2021
Backed by a new heterojunction module factory in Florida and the expansion of its production plant in Minnesota, solar manufacturer Heliene is looking to take advantage of US policy support to meet increasing demand for American-made PV equipment. Jules Scully discusses the company’s growth plans with CEO Martin Pochtaruk.
September 20, 2021
A subsidiary of Indian utility Tata Power has received a letter of intent to set up a 250MW grid-connected solar project in the state of Maharashtra.
September 20, 2021
The US solar policy landscape is shifting at breakneck speed, with new incentives and trade tariffs promising to alter the shape of the industry for the coming decade. Luckily Andy Colthorpe and Liam Stoker are here to decipher the changes in the September 2021 episode of the Solar Media Podcast.
September 16, 2021
North American module manufacturer Silfab Solar has received an investment led by private equity firm ARC Financial Corp to help scale up its US PV production footprint.
September 15, 2021
Solar module manufacturer Seraphim has started construction on new phases of its 10GW module manufacturing facility in Jinzhai, China.
September 15, 2021
Leading ‘Solar Module Super League’ manufacturer JinkoSolar has said it is addressing the reliability of shipments to the US market, while also upgrading its module capacity forecast for this year and teasing an expansion of n-type cell capacity.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021