With a target to reduce dependence on imported solar cells and modules, the Indian government has announced an incentive program for solar cell and module manufacturers.
India’s finance minister announced a production-linked incentive in this year’s financial budget. The government has earmarked $640 million to incentivize solar manufacturers.
The incentive scheme is part of the government’s Atmanirbhar Bharat (self-sufficient India) mission. The solar power sector is heavily dependent on imports, with around 80-90% of solar modules in India being sourced from China. Earlier attempts by the government to make Chinese imports unattractive (imposition of anti-dumping and safeguard duties) have had a little beneficial impact on Indian solar manufacturers.
Through the incentive scheme, the Indian government hopes to attract investment for 10 gigawatts of solar ingot-to-module capacity by 2023.
Eyeing government incentives and a renewed push to reduce dependence on Chinese imports, several companies have announced interest in expanding or setting up new manufacturing facilities.
US-based First Solar and 1366 Technologies and India’s ReNew Power, Acme Solar, Vikram Solar, and Adani Solar are among 15 companies that have expressed interest in setting up new or expanding existing production facilities. Combined, these companies have shared plans to invest $3 billion to set up 20 gigawatts modules, 20 gigawatts cells, and 10 gigawatts wafer production facilities.
In addition to this incentive scheme, the government is also considering imposing additional import duties on Chinese imports to further incentivize domestic manufacturers.
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
