India is about to embark on the largest push of any country on earth for solar energy. By March 2027, the country wants to reach a point of complete self-sufficiency in solar cell production. This decision is a significant step in the country’s efforts to be net-zero by 2070. Establishing new national leadership, India’s Union Ministry of New and Renewable Energy released new directives just last week. Clean energy agencies are already scrambling, cancelling and reprocuring different tenders for solar projects and punctuating the central government’s commitment to boosting domestic manufacturing.
The recent cut to the goods and services tax (GST) on renewable energy equipment adds to this momentum. Beginning September 22, the GST rate reduces from 12% to 5%. The federal government’s clean energy policy went into effect June 1. It requires the use of only domestically produced solar modules and cells in all federally funded projects. This policy is intended to lower our reliance on cheap Chinese solar cells and to help develop regional manufacturing capacity.
New Directives for Solar Projects
The Union Ministry took a courageous step. They directed clean energy agencies to recall the solar project tenders they have out on the street right now and reissue them according to the new standards. Agencies currently have a mere 15 days to report their actions. They need to act urgently in implementing this big new directive! Though not perfect, this rapid movement is a strong signal of the government’s commitment to ensuring domestic manufacturers are first in line in future renewable energy projects.
Through stricter enforcement of such requirements, India wants to expand its renewable energy portfolio exponentially. The policy not only supports the domestic solar industry but aligns with India’s long-term environmental goals, particularly its commitment to achieving net-zero emissions by 2070.
Geothermal Energy Policy Launch
Last month, India adopted its first National Policy on Geothermal Energy. This executive order, in conjunction with certain solar projects, seeks to harness the country’s geothermal capacity, which has remained mostly untapped. This framework is an integral part of India’s long-term strategy. It not only aids in the diversification of renewable energy sources but acts to strengthen the baseload supply. Making geothermal energy part of India’s clean energy policy will complement and boost the country’s solar energy initiatives. Additionally, making such a move would build the country’s renewable infrastructure.
This multi-pronged approach is an example of a well-rounded strategy. It addresses urgent energy concerns and, by doing so, enables India to position itself as a leading global producer of sustainable energy. With support for the simultaneous development of solar and geothermal resources, the federal government aims to produce a more resilient energy landscape.
Future Outlook
Future ambitions
Moving forward, India is set to become a powerhouse for renewable energy generation. The new focus on solar cell manufacturing self-sufficiency will lead economic development. Most importantly, though, it will save lives and cut emissions nationwide while creating good-paying jobs. So, as local developers aggressively scale their production capabilities to meet growing demand, they will realize a staggering test moving away from their reliance on materials imported.