In a strategic move aimed at bolstering India’s solar manufacturing sector and reducing dependence on imports, the government has announced plans to establish an online repository for all domestically manufactured solar modules.
This initiative comes in response to the shortcomings of existing domestic content rules (DCR) in curbing Chinese imports and aligns with India’s broader agenda of enhancing self-reliance in renewable energy production. The repository, set to be launched soon, will serve as a comprehensive platform for verifying the origin of solar modules used in various government-supported schemes, including the recently launched PM Surya Ghar initiative. Beneficiaries of such schemes will now have the means to ascertain whether the solar modules installed on their rooftops are indeed of Indian origin, thereby promoting transparency and accountability in the utilisation of public funds. Under several subsidised schemes overseen by the Ministry of New and Renewable Energy (MNRE), including the CPSU Scheme Phase-II and PM-KUSUM, there exists a mandate to procure solar PV cells and modules exclusively from domestic manufacturers. This mandate extends to the ‘PM Surya Ghar’ rooftop solar scheme as well, emphasising the government’s commitment to promoting indigenous manufacturing and fostering a conducive environment for domestic solar players.
The establishment of the repository also coincides with the government’s decision to reimpose the Approved List of Modules & Manufacturers (ALMM) for solar module manufacturers, effective April 1. This measure aims to channel procurement towards approved domestic manufacturers listed by the Bureau of Indian Standards (BIS) and MNRE, thereby incentivising local production and enhancing supply chain resilience. Amid persisting challenges posed by import dependencies, including a high import duty of 40% and ongoing diplomatic tensions with China, India’s focus on domestic manufacturing of solar modules has intensified. This shift aligns with the country’s ambitious target of achieving 500 GW of installed renewable energy capacity by 2030, necessitating a concerted effort to strengthen domestic supply chains and reduce reliance on external sources.
In addition to regulatory measures such as higher customs duties and the ALMM, the government has introduced a production-linked incentive (PLI) scheme to further incentivise local manufacturing of solar modules. However, recent data from ICRA indicates a surge in cell and module imports during the April-February period of FY24, underscoring the need for stringent measures to promote indigenous production and curb import dependencies. As India navigates towards greater energy self-sufficiency and sustainability, initiatives like the establishment of a solar module data repository play a pivotal role in advancing the country’s renewable energy agenda and fostering a conducive ecosystem for domestic solar manufacturers. With concerted efforts from both the public and private sectors, India’s solar sector stands poised for transformative growth and leadership on the global stage.
