Renewable Energy

Govt allocates 39,600 MW domestic solar module manufacturing capacity under PLI tranche-II

Ruchita Shah

Notable because

India has limited solar module manufacturing capacity, which has resulted in a significant dependence on imported modules for solar installation. To become self-reliant, the Indian government launched the Production-Linked Incentive (PLI) scheme for high-efficiency solar modules in 2020 and allocated 8,737 MW capacity under Tranche I in 2022. With the recent allocation of 39,600 MW under Tranche II, India is gearing up to achieve 48 GW of domestic manufacturing capacity by 2026.

What to look out for in the months ahead

(a) Will there be a mandate to provide demand security for these high-efficiency solar modules, such as the domestic content requirement (DCR) for these high-efficiency solar modules, at least in government tenders to provide demand security?

(b) India aims to become a solar module exporter eventually. Hence, it is critical to monitor the cost-competitiveness of domestically manufactured solar modules in domestic and international markets.