India also wants to establish an entire ecosystem for domestic solar manufacturing by 2028. This target is included in the country’s advance to increase its renewable energy capacity to 50% by 2030. As of today, India’s non-fossil fuel capacity now stands at 251.5 gigawatts (GW). The government is intent on doubling that, with a target of 500 GW non-fossil capacity by 2030. This major initiative is an important signal of India’s intention to make the transition to cleaner energy and away from fossil fuels.
To facilitate this ambitious goal, the country has a manufacturing base of 100GW worth of solar module manufacturing capacity. India has set aside Rs500 billion through the Production-Linked Incentive (PLI) Scheme. These investments have already created more than 12,600 direct jobs in the renewable energy supply chain. High-efficiency solar photovoltaic (PV) modules are the other focus of the PLI Scheme. It claims a handsome budget of Rs240 billion, which translates to about $2.7 billion.
Development of Domestic Capacity
The Indian government is mobilizing efforts to develop domestic capability for solar wafers and ingots. These components are critical for producing solar panels. This effort is designed to enhance the current capacity for module manufacturing, to bolster domestic supply chains and lessen reliance on module imports. This was echoed by Pralhad Joshi, the Minister of Parliamentary Affairs, who focused on the importance of increasing domestic production. He congratulated the leadership of states large and small for making waves on renewable energy projects.
“Timely action is the backbone of this system. If we keep delaying procurement on the expectation that tariffs will fall further, we are missing the bigger picture.” – Pralhad Joshi
In short, when we prioritize local manufacturing, we supercharge the creation of better jobs. It will improve air quality, spur economic development, and help India achieve its clean energy transition targets.
Key Government Schemes
India’s efforts to promote solar energy involve two significant government schemes: PM KUSUM and the PM Surya Ghar Muft Bijli Yojana (PMSGY). Launched in 2019, PM KUSUM initiatives primarily focus on increasing solar energy adoption in the agriculture industry. The second phase of this initiative is set to start after the initial phase ends in March 2026.
PMSGY has already improved the lives of nearly two million households by supplying them with free electricity from off-grid solar photovoltaic systems. These schemes not only aid the rural electrification but help in fulfilling the national commitment towards achieving non-fossil capacity of 500 GW.
Future Outlook
India, welcome aboard to the future! Further, to achieve its aims of cleaner energy transition faster, it is looking to make policy reforms and design PM-KUSUM 2.0. This strategic approach is intended to ensure that India’s renewable energy sector continues to grow and adapt to emerging challenges.
India is committed to a vision of energy independence and sustainability. A robust solar manufacturing ecosystem will be key to ensuring all of America’s energy needs can be met domestically, while honoring our climate commitments around the world. The government’s commitment to these initiatives reflects its recognition of renewable energy as a crucial component of India’s future economic and environmental strategy.