Domestic Manufacturing of Solar PV Modules

The solar photovolatic module manufacturing capacity in the country, as per Approved List of Models & Manufacturers (ALMM) List-I for solar PV modules, issued on 13.08.2025 is around 100 GW.

Policy Initiatives

The Ministry of New and Renewable Energy (MNRE), Government of India, has been consistently bringing out policies for making the country self-reliant in the field of solar energy.

(i) Production Linked Incentive (PLI) Scheme

The Government of India is implementing the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore. Under the Scheme, Letters of Award have been issued for setting up of 48,337 MW of fully/ partially integrated solar PV module manufacturing units.

(ii) Domestic Content Requirement (DCR)

Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya Ghar: Muft Bijli Yojana, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.

(iii) Preference to ‘Make in India’ in Public Procurement

In accordance with Department for Promotion of Industry and Internal Trade (DPIIT) ‘Public Procurement (Preference to Make in India), Order’, MNRE had notified Purchase Preference (linked with local content) for RE sector which, inter-alia, identified list of goods and services or works in respect of which there is sufficient local capacity and local competition is available and mandated that only “Class-I local supplier” shall be eligible to bid for the above goods/services/works with the mandate that minimum local content should be at least 50%.

(iv) Imposition of Basic Customs Duty on import of solar PV cells, modules, Solar Inverters and Solar Glass

The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells, solar PV modules, solar inverters, and solar glass.

(v) Discontinuation of Customs Duty Concessions

MNRE has discontinued issuance of Customs Duty Concession Certificates for import of material /equipment for initial setting up of solar PV power projects with effect from 02.02.2021.

(vi) Exemption of Custom Duty on capital goods for manufacture of Solar Cells and Modules

The Government has exempted customs duty on import of the goods specified in List 41 of the notification No. 30/2024-Customs dated 23.07.2024, for the manufacturer of solar PV cells and modules.