India is on a mission to achieve 500 GW of renewable energy capacity by 2030, and to reach that target, the government is tightening the norms and standards for solar modules and cells. The aim is to reduce the influx of sub-standard Chinese imports and ensure that only high-quality modules are used for government-backed solar projects.
The Approved List of Module Manufacturers (ALMM), introduced in 2019, is being tightened to ensure quality compliance by manufacturers. The Bureau of Indian Standards (BIS) and the Ministry of New and Renewable Energy approve manufacturers and solar modules for the list. The move is also aimed at reducing import dependence for solar modules.
Currently, most Indian-made solar modules do not meet the efficiency criteria of each module converting 21% of solar energy into electricity, which is essential to reach the 2030 renewable energy target. The total capacity for manufacturing solar photovoltaic modules in the country, as per ALMM, is about 22.4 GW per annum.
To tackle the issue of low-quality solar modules, the government is planning to make changes to the ALMM scheme. Union Minister for New and Renewable Energy, Raj Kumar Singh, said that a quality control mechanism should ensure outdated products and technologies are kept out, and any technology which is outdated will not be allowed under ALMM. The proposed changes are currently being examined, and the norms are likely to be announced in the next six weeks.
The Centre has also announced that from 1 April 2022, any import of solar PV modules will attract basic customs duty (BCD) of 40%, and import of solar PV cells will attract BCD of 25% to lower imports from China.
Moreover, the government has come up with two tranches of the production-linked incentive scheme. The Centre announced an allocation of an additional ₹19,500 crore under the solar PLI scheme to manufacture high-efficiency modules in the Union budget for 2022-23, with priority to fully integrated manufacturing units from polysilicon to solar PV modules.
According to the government, manufacturing capacity totaling 7.4 GW is expected to become operational by October 2024, while 16.8 GW capacity would be ready by April 2025. The remaining 15.4 GW capacity would be operational by April 2026 under the incentive scheme.
The Union Minister also stressed the need to keep the cost of renewable energy down as India plans to become globally competitive in green hydrogen, which is produced with renewable energy.
In conclusion, the Indian government's measures to raise the quality norms and standards for solar modules and cells, tighten the ALMM scheme, and offer incentives for high-efficiency modules' manufacturing indicate the country's commitment to achieving its renewable energy target while reducing import dependence.
