India is working to enhance its domestic manufacturing capabilities for renewable energy projects and to fortify local supply chains to achieve its clean energy goals.

The country’s domestic solar manufacturing sector is experiencing a significant transformation driven by government initiatives and industry commitment.

As the country strives for self-reliance in renewable energy production, key stakeholders navigate challenges and opportunities in a rapidly evolving landscape.

The insights from the Mercom India Renewables Summit from various industry leaders and government officials provide a comprehensive view of India’s solar manufacturing ecosystem.

On the first day of the Mercom India Renewables Summit in New Delhi, panelists at a session, ‘The Rise of Domestic Manufacturing: Strategies to Meet Growing Demand,’ deliberated on the challenges and opportunities for India’s renewable energy manufacturing ecosystem.

Dinesh Dayanand Jagdale, Joint Secretary, Ministry of New & Renewable Energy (MNRE), said the first quarter of 2024 has been excellent for tenders, auctions, and installations. “We achieved 18 GW of renewable energy installations in FY 2024-24.

He emphasized the effectiveness of the Approved List of Models and Manufacturers (ALMM) mandate aimed at domestic solar manufacturing. “The ALMM is effective. India has taken a stand and wants more Indian manufacturers. Hence, several programs, including PLI (Production Linked Incentive), were introduced.”

The ALMM was suspended for a year until March 31, 2024, to enable faster commissioning of projects.

Jagdale ruled out another suspension. “There is no possibility of an extension or waiver of ALMM. The Indian manufacturing ecosystem should be sustainable.”

He outlined the government’s ambitious targets: “We are comfortable with modules and want to become comfortable with cells, too. We will reach 18/20 GW by next year. Probably by the start of 2027, we should become totally reliant on ourselves.”

Prashant Mathur, CEO of Saatvik Solar, spoke of the importance of policy consistency for industry growth: “If there is consistency in policy, there will be positive growth.”

He highlighted the industry’s rapid technological adoption: “Currently, we have 3 GW of capacity. Half is TopCon, and half is Mono-Perc. We are also setting up cell and module manufacturing. The market has opted for N-type technology over P-type.”

“We currently have balance of modules components like solar glass, backsheet, and junction boxes being made in India. I would also recommend policies like ALMM for component manufacturing,” Mathur said.

Anand Kumar, Head, Supply Chain Management, Emmvee Group, shed light on the technological direction the industry is taking. “We have transitioned to purely TopCon and are the leaders. We are also very close to commissioning our own cell line with TopCon technology.”

“We have to keep evolving as new technology evolves. Additionally, investments and bringing the capacity online is important.”

Sujoy Ghosh, Country Manager, India, First Solar, provided an optimistic outlook on India’s global competitiveness: “Firstly, the Budget has withdrawn the exemption of solar glass duty, which is a positive move for us, and we have a roadmap to localize 90% of our value chain.”

He pointed out that programs like PM KUSUM and PM Surya Ghar add to the demand due to the local manufacturing mandate. “While the ALMM flip-flop was a challenge that set us back by almost two years, we have recovered. India has overtaken South Korea in manufacturing and is at par with China on cost.”

Ghosh also highlighted the importance of focusing on components for true self-reliance.

Manjunath Reddy, Founder and Managing Director, Dhash PV Technologies, pointed out the challenges ancillary manufacturers face: “As ancillary manufacturers, we believe that in component manufacturing, there is technology and capital required. More handholding is needed. There is no ALMM ancillary manufacturing. I hope it comes soon.”

He pointed out that his company is the world’s largest junction box manufacturer outside China, with 11 GW capacity.