By Gautam Mohanka, Chief Executive Officer, Gautam Solar
In recent years, India has made a significant shift in the energy sector, propelled by numerous additions to conventional energy sources. The need to transition from non-renewable energy sources has gradually increased due to the harmful effects on the environment. Among renewable energy sources, solar energy stands out as a silver lining because of its abundance.
India ranks fourth globally in terms of installed renewable energy capacity, and fifth in solar power capacity. However, the domestic manufacturing of solar photovoltaic cells and modules has yet to witness significant growth to achieve the country’s sustainable goals.
Incorporating advanced technologies
According to the Bloomberg New Energy Finance report 2022, India is dependent on China for solar components, which accounts for 57 per cent of imports for solar panels, including modules, cells and solar glasses. Incorporating advanced technologies can elevate domestic manufacturing and reduce the cost of raw materials, which are currently being imported at higher prices in the country.
Investing in advanced technologies to scale up domestic manufacturing is crucial, as it will decrease the dependency on imports. Indian solar manufacturers still lag behind their Chinese counterparts because of higher prices. India also stands to benefit in the long term if it scales up and installs superior technologies, breaking into the international market by exporting modules to other countries.
Government support with favourable policies
To strengthen and gain momentum in domestic manufacturing, the government has been introducing specific policies centralising the competitiveness of Indian manufacturing to instil confidence in domestic manufacturers and attract investment. In this context, the production-linked incentive scheme is a commendable initiative to encourage domestic players for larger and more competent participation. The scheme selects manufacturers through a competitive bidding process and grants them sanctioned incentives for five years.
Furthermore, the Approved List of Models and Manufacturers was reinstated on April 1, 2024. Projects under the Ministry of New and Renewable Energy and part of programmes such as the Central Public Sector Undertaking Scheme Phase II, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Component B, and Grid-Connected Rooftop Solar Programme Phase II, which provide subsidies, are mandated to meet the domestic content requirement (DCR) for solar panels. Preference for domestically manufactured modules and inverters is also given for public procurement, advancing the “Make in India” initiative. Government-backed policies and programmes are transforming the solar energy landscape in India by promoting domestic manufacturing, leading to the production of more efficient and cost-effective panels.
Reinforcing public-private collaborations
The distinct strengths of the government and the industry, when combined, can propel solar energy forward through domestic manufacturing. Together, government policies and industry experts can advance the development and implementation of solar energy. These collaborations can help in dealing with barriers to domestic manufacturing, facilitating knowledge sharing, technology transfer and infrastructure development.
Private players can develop their technical knowledge, which is synergised with the efforts of researchers and scientific institutions. As a result, industry experts and researchers can work in tandem, fostering a culture of innovation and strengthening domestic manufacturing.
Conclusion
The domestic manufacturing of solar panels and optimal utilisation of raw materials need to keep pace with rapid enhancements and advancements in solar power technology. Building a robust solar sector in a globalised economy requires strategic planning and informed decision-making.
The government has made a long-term commitment to develop a thriving manufacturing base in India. Apart from increasing the country’s energy security, the domestic solar manufacturing industry will also help in the creation of jobs and the growth of the entire economy.
Therefore, by harnessing the full potential of solar energy technologies, we can pave the way for a greener and more sustainable future.
