India unveils four-fold increase of solar PLI scheme funding to US$2.6 billion

Facebook
Twitter
LinkedIn
Reddit
Email
The Indian government has been vocal about its intentions to set up a PV manufacturing base to boost its solar exports and reduce dependency on Chinese imports. Image: Premier Energies

India’s government is to provide a further Rs19,500 crore (US$2.6 billion) of funding for its PV manufacturing Production Linked Incentive (PLI) scheme, with the country intent on spurring further development of a domestic solar manufacturing base.

Indian Minister of Finance Nirmala Sitharaman said the additional funding included within its Union Budget for the forthcoming fiscal year, which was expected after an announcement in November, would be used to “facilitate domestic manufacturing” as India strives to achieve 280GW of installed solar capacity by 2030.

The PLI scheme was implemented in April last year by the Ministry of New and Renewable Energy and aimed to incentivise companies setting up integrated, higher capacity, high efficiency solar module plants in India.

Initially backed to the tune of Rs4,500 crore (US$616.8 million), the latest funding made available dwarfs its previous budget, increasing it more than four-fold as India seeks to challenge the dominance of China in the solar PV manufacturing industry.

The PLI requires applicant manufacturers set up a plant with a minimum capacity of 1GW, while the maximum capacity that can be awarded to one recipient is 50% of their bid capacity or 2GW, whichever is less. 

Modules produced by the PLI beneficiaries must have a minimum efficiency of 19.5% with temperature coefficient of Pmax better than -0.30%/°C, or an efficiency of 20% with temperature coefficient of Pmax equal to or better than -0.4%/°C.

Sitharaman said under the new budget, priority would be given to “fully integrated manufacturing units from polysilicon to solar PV modules”.

India’s solar module manufacturing capacity is currently 8.8GW, while cell manufacturing capacity is 2.5GW.

The news of significantly more funding under the PLI scheme will be welcomed by large swathes of the solar sector, with India recently being the centre of much solar activity.

At the start of the year, Reliance Industries committed to investing US$80 billion over 10-15 years to establish 100GW of renewables and set up green technology manufacturing facilities in the state, including integrated solar PV module manufacturing via polysilicon, wafer and cell manufacturing.

Just prior to this, Tata Power Renewables’ president Ashish Khanna told PV Tech Premium about the “huge potential” for solar manufacturing in India.

More recently, Indian PV encapsulant and backsheet manufacturer RenewSys brought its encapsulant production capacity up to 3GW with the commissioning of a new production  line, with the company eventually targeting 11GW as companies in all stages of the PV supply chain look to ramp up production.

PV Tech Premium has broken down the key mechanisms and avenues available to businesses looking to set up manufacturing facilities in India as well as laying out the instruments for investing in the country’s growing solar sector more broadly.

At COP26, India committed to have 500GW of renewable capacity, accounting for 50% of its energy mix, by 2030 and said it would aim for net zero by 2070, in line with what most analysts thought was possible given its population, projected growth and expected energy needs.

29 November 2022
PV ModuleTech EMEA in Madrid on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.

Read Next

September 27, 2022
Tongwei has announced plans to sign an investment agreement to develop a 25GW high-efficiency PV module manufacturing base in China
September 23, 2022
India’s government has approved the second round of the production-linked incentive (PLI) scheme to incentivise domestic solar PV module manufacturing.
September 22, 2022
JA Solar has been promoted to AAA-Rating status for the first time, joining LONGi Solar and Trina Solar in this exclusive bankability ratings, now recognised widely across the PV sector as one of the most accurate and detailed ranking systems on offer to PV module buyers when undertaking supplier due diligence.
September 22, 2022
Tech major Amazon has expanded its renewables portfolio globally with 71 new projects with a total capacity of 2.7GW.
September 20, 2022
Private equity firm KKR and Hero Group have invested US$450 million in Indian independent power producer (IPP) Hero Future Energies (HFE) to support its renewables expansion.
September 14, 2022
Tata Power Solar Systems has received a “letter of award” of INR5.96 billion (US$75 million) from NHDC to set up a 125MWp floating PV project in India.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 27, 2022
15:30 AEST (UTC +10)
Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)