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.
(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.