Massive Growth in Solar Manufacturing
India’s solar PV module manufacturing capacity has witnessed tremendous growth, from just 2.3 GW in 2014 to 67 GW in 2024. This remarkable increase is credited to the “Make in India” initiative.
The initiative completed ten years of fostering innovation, investment, and infrastructure in the country. The initiative has strengthened India’s manufacturing sector, especially in renewable energy. This has enabled the country to meet domestic demand. It has also become a global player in solar equipment exports.
Government’s Support for Renewable Energy Equipment
The Indian government has implemented several measures to boost domestic production of renewable energy equipment. This particularly includes solar PV modules and cells.
Union Minister for New and Renewable Energy, Shri Pralhad Joshi, highlighted the importance of this effort. He did so in a recent social media post. He expressed the government’s dedication to supporting domestic industries through various incentives.
Among these measures is the Production Linked Incentive (PLI) scheme, aimed at promoting integrated manufacturing units for solar PV modules. The Viability Gap Funding (VGF) initiative supports large-scale battery energy storage systems. Fiscal incentives include tax breaks and customs duty waivers for manufacturing components like electrolysers and solar cells.
Policy Measures and Domestic Content Requirements
Several policy initiatives complement the financial incentives. For example, the Domestic Content Requirement (DCR) scheme ensures the use of locally produced materials.
This includes projects like the PM Surya Ghar: Muft Bijli Yojana and PM-KUSUM. These policies not only boost local manufacturing but also ensure quality control by enforcing standards for solar equipment production.
A Bright Future for Solar Manufacturing in India
The solar PV sector remains a major focus of the government, which has committed Rs. 24,000 crores to the PLI scheme for high-efficiency solar modules. India’s manufacturing capacity is expected to grow even further.
There are 48 GW of new projects currently underway. These projects promise a total capacity of 100 GW per year by 2026. This growth will meet India’s energy needs. It will also position the country as a key exporter of renewable energy equipment. This contribution is significant to global sustainability efforts.
With these initiatives, India is poised to achieve self-reliance in renewable energy. The country will attract significant investments. This will also create thousands of new jobs.
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