caalley logo

The alley for Indian Chartered Accountants

Govt mandates use of locally-made solar cells from 2026 to curb imports

Dec 10, 2024

The government plans to increase its non-fossil fuel capacity to 500 GW by 2030 from about 156 GW at present

Indian clean energy firms will be required to use solar photovoltaic (PV) modules from cells made locally by a government-approved list of companies from June 2026, in a move to curb imports from top supplier China.

India already requires the use of locally-made PV modules in government projects from an approved list of domestic manufacturers, and authorities have now extended this rule to solar cells as well.

The government plans to increase its non-fossil fuel capacity to 500 GW by 2030 from about 156 GW at present.

Currently, India has a solar PV module-making capacity of about 80 gigawatts (GW), while its cell-making capacity is slightly more than 7 GW, with companies largely relying on Chinese cells to make modules.

The government will issue a list of approved cell manufacturers as the installed capacity of solar PV cells in the country is expected to increase substantially next year, the renewable energy ministry said on Monday.

Several Indian companies have already set up or are in the process of establishing solar cell making plants.

Tata Power recently commissioned a 4.3 GW cell making plant in southern India. Reliance Industries aims to commission its first phase of a 20 GW integrated solar cell and module production facility before the end of this year in the state of Gujarat, where the Adani Group already has a 4 GW cell and module making plant.

[Reuters]

Don't miss an update!
Subscribe to our newsletter