Indian solar ancillary component manufacturers have urged the Ministry of New and Renewable Energy (MNRE) to mandate the use of domestically manufactured solar components in government projects to create a robust local supply chain and reduce the reliance on imports.

To promote local manufacturing of solar components in the face of ‘rampant dumping’ of components originating from China and Vietnam routed through FTA (free trade agreement) countries, the Solar Ancillary Manufacturers’ Association (SAMA) has suggested an ALMM (Approved List of Models and Manufacturers for solar modules)-type mandate for solar components.

These ancillary components comprise solar glass, encapsulants, copper conductors, aluminum frames, and junction boxes. “If not 100%, there should be a mandate for the use of at least 70% of the requirement from local manufacturers of these components,” Avinash Hiranandani, Managing Director, RenewSys India and SAMA director, told Mercom India.

“Mandating such a domestic content requirement will bode well for the entire solar manufacturing ecosystem,” he said.

RenewSys is a manufacturer of encapsulants, backsheets, and solar modules.

Currently, only solar glass has some protection against imports in the form of a 10% customs duty announced in the Union Budget 2024. Local solar component manufacturers say the other segments of the solar supply chain also deserve a cushion against cheap imports in the form of tariff and non-tariff barriers.

At a recent post-results earnings conference call, Borosil Renewables Executive Chairman Pradeep K. Kheruka and SAMA Director said the demand for solar components, including solar glass, has increased with the manufacturing capacity of solar modules in India touching 65 GW and poised to cross 100 GW in the next two to three years. The use of locally produced modules had risen sharply, thanks to the ALMM mechanism.

Even while an investigation is on by the Directorate General of Trade Remedies (DGTR) into the dumping of textured tempered coated and uncoated glass originating from China and Vietnam, Chinese exports have dropped their prices further, according to Kheruka. He expects a decision and preliminary findings of the investigation in the next few months.

“For the domestic solar glass producers, getting ADD (anti-dumping duty) and CVD (countervailing duty) remains extremely important to assure industrial expansion,” he said.

Regarding the need for an association of ancillary manufacturers, Kheruka said the government’s focus has been on solar cells and modules. “But there are many other products you need to complete the production of a solar module. There are glass makers, people who make encapsulants, backsheets, junction boxes, aluminum frames, copper conductors, etc.”

Hiranandani said the MNRE is yet to reply to the association’s representation.