Govt incentivises production of high efficiency solar PV modules

08 Apr 2021

The union cabinet on Wednesday approved production linked incentive scheme for achieving manufacturing capacity of Giga Watt (GW) scale in high efficiency solar photo voltaic (PV) modules, with an outlay of Rs4,500 crore.

The cabinet, chaired by Prime Minister Narendra Modi, approved the ministry of new and renewable energy's proposal for implementation of the 'National Programme on High Efficiency Solar PV Modules'.
Solar capacity addition at present depends largely n imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules. The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity. It will also support the `Atmanirbhar Bharat; initiative.
Solar PV manufacturers will be selected through a transparent competitive bidding process. PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules. Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the PLI amount will increase with increased module efficiency and increased local value addition.
The outcomes/ benefits expected from the scheme are as follows:
  • Additional 10,000 MW capacity of integrated solar PV manufacturing plants;
  • Direct investment of around Rs17,200 crore in solar PV manufacturing projects;
  • Demand of Rs17,500 crore over 5 years for 'Balance of Materials';
  • Direct employment of about 30,000 and indirect employment of about 1,20,000 persons;
  • Import substitution of around Rs17,500 crore every year: and
  • Impetus to research and development to achieve higher efficiency in solar PV modules.