PLI Scheme for Solar PV Modules: High-Efficiency Solar Manufacturing in India
Introduction
Taking a big step in the field of solar energy in India, the government has launched the PLI Scheme for Solar PV Modules. The scheme aims to promote the production of high-efficiency solar PV modules in India. Under this scheme, the government has budgeted ₹24,000 crore. This scheme is not only to increase the production of solar modules but it will also prove to be helpful in meeting the energy needs of India.
What is PLI Scheme for Solar PV Modules?
The government launched this Scheme to promote the production of solar modules. Specifically, its main objective is to scale up India’s production of solar modules to gigawatt (GW) levels. Under this scheme, the government will provide incentives for five years to selected manufacturers for the high-efficiency solar PV modules they produce and sell.
Objectives of PLI Scheme for Solar PV Modules
The main objective of this scheme is to create an environment that can produce high efficiency solar PV modules in India.This will also reduce dependence on imports. The objectives of this scheme are as follows:
- Increasing the production capacity of high-efficiency solar modules: The scheme will increase India’s production capacity for high-efficiency solar modules.
- Bringing cutting-edge technology to India: The scheme aims to produce high-efficiency solar modules by bringing advanced technology to India. The scheme will be technology independent, but technology with better performance will get greater incentives.
- Promoting the setting up of integrated plants: The scheme will encourage the setup of integrated plants to enhance quality control and competitiveness.
- Developing an environment for sourcing local content: The use of local content for solar manufacturing will be promoted.
- Employment Generation and Technological Self-Reliance: The scheme will create new employment opportunities and make India technologically self-reliant.
Implementation of PLI Scheme for Solar PV Modules
The government is implementing the PLI Scheme for Solar PV Modules in two phases.
Tranche-I
Approval and Budget: On April 7, 2021, the Union Cabinet approved the initiative, allocating ₹4,500 crore for its implementation.
Enforcement Agency: The Indian Renewable Energy Development Agency Limited (IREDA) was assigned the task of carrying out the program’s initial phase.
Selection Process: To find firms who could produce high-efficiency solar PV modules, IREDA released tender documents.
Result: Three selected bidders received Letters of Award from IREDA in November and December 2021, which paved the way for the establishment of fully integrated solar PV module manufacturing units with a combined capacity of 8,737 MW.
Tranche-II
Approval and Budget: On September 30, 2022, MNRE released implementation guidelines for Tranche-II, following approval from the Union Cabinet on September 21, 2022. For this phase, ₹19,500 crore was allocated as the budget.
Enforcement Agency: Solar Energy Corporation of India (SECI) was assigned the task of carrying out this phase.
Selection Process: Under Tranche-II, SECI sent out tender documents to choose solar PV producers.
Result: In April 2023, SECI awarded Letters of Award to 11 bidders. As a result, they will establish 39,600 MW of fully or partially integrated solar PV module manufacturing units.
Impact of PLI Scheme for Solar PV Modules on India's solar industry
India’s solar industry will benefit from the PLI Scheme for Solar PV Modules.
Encouraging domestic production: By increasing solar module manufacture domestically, India will become less reliant on imports.
Promoting innovation: This program will lead to the development of cutting-edge technology, which will stimulate innovation in the solar energy industry.
Economic benefits: By lowering imports, this plan will improve the nation’s economy in addition to generating new job possibilities.
Contribution to India’s renewable energy goals: This programme will be crucial to the country’s achievement of its renewable energy targets.
Challenges and considerations
Challenges in technology adoption: Adopting cutting-edge technologies may provide certain difficulties.
Infrastructure and investment: To meet the scheme’s objectives, significant infrastructure and investment will be essential. Furthermore, long-term sustainability is critical, so it’s important to consider the plan’s long-term effects and sustainability.
Conclusion
PLI Scheme for Solar PV Modules is a great initiative to increase the production of solar PV modules in India. This will not only reduce the country’s dependence on imports but will also lead to the development of new technologies. This scheme will prove to be highly beneficial in the renewable energy sector in the long run.
If you have any questions related to this scheme, then definitely ask in the comment below. Take full advantage of this scheme to move forward in the field of solar energy.