Image Source: Social Media

As India celebrates the 10th anniversary of its "Make in India" initiative, the country has witnessed a remarkable transformation in its renewable energy sector, particularly in solar power. The initiative has propelled India’s solar photovoltaic (PV) module manufacturing capacity from a modest 2.3 gigawatts (GW) in 2014 to a staggering 67 GW today, positioning India as a key player in the global renewable energy market.

The Government of India has prioritized the development of a robust manufacturing sector as part of its broader strategy to promote sustainable energy solutions. Union Minister for New and Renewable Energy, Shri Pralhad Joshi, emphasized on social media the government's commitment to supporting domestic industries through various incentives. "India's renewable energy sector has significantly benefited from #10YearsOfMakeInIndia. We aim to establish India as a major global player in the clean energy value chain," he stated.

Fuelling Domestic Growth

The government’s push for domestic manufacturing includes a range of initiatives, including the Production Linked Incentive (PLI) scheme, which provides financial support for establishing integrated manufacturing units for solar PV modules and upstream components. Other efforts involve Viability Gap Funding (VGF) for battery energy storage projects and incentives for green hydrogen production under the National Green Hydrogen Mission.

To encourage local production, the government has introduced fiscal measures such as reduced customs duties on essential inputs and new tariffs on imported solar equipment, fostering a self-reliant ecosystem for renewable energy. By implementing Domestic Content Requirements (DCR) in various programs, the government ensures that local manufacturers benefit from subsidies and contracts.

The Solar Boom

Solar energy remains at the forefront of India’s renewable strategy. The significant leap in solar PV manufacturing capabilities reflects the government’s dedication to making the country self-sufficient in solar technology. The PLI scheme, backed by an investment outlay of ₹24,000 crores (approximately $3 billion), aims to accelerate the production of high-efficiency solar modules.

In just the past three and a half years, India has ramped up its solar PV production from 8 GW to 67 GW, a phenomenal growth rate that showcases the effectiveness of targeted government policies. With over 48 GW of solar manufacturing projects underway, the initiative is expected to generate approximately ₹1.1 lakh crores (around $13 billion) in investments and create 45,000 direct jobs.

A Global Impact

India's impressive solar capacity is not just about meeting domestic demand; it also sets the stage for significant export opportunities. The country is projected to achieve a solar module production capacity of 100 GW per year by 2026, a milestone that will enhance India’s role in the global renewable energy supply chain and contribute to economic growth.

The broader implications of this transition extend beyond economics. As countries worldwide grapple with climate change, India’s renewable energy advancements could serve as a model for others aiming to shift towards sustainable energy practices. The commitment to innovation and self-reliance in renewable manufacturing positions India as a crucial player in the global fight against climate change.