**Executive Summary:**
This document summarizes the Indian government's efforts to promote domestic solar PV module manufacturing, as addressed in Lok Sabha Unstarred Question No. 2891 on August 6, 2025. It outlines the current installed capacity, various initiatives to encourage domestic production, and details regarding solar parks and manufacturing units in Rajasthan. The information is based on the Approved List of Models and Manufacturers (ALMM) issued on June 30, 2025.
**Key Points / Main Content:**
* **Installed Capacity:**
* The current installed solar PV module manufacturing capacity in India is 91.6 GW (as per ALMM issued on June 30, 2025).
* **Government Initiatives to Encourage Domestic Solar Manufacturing:**
* **Production Linked Incentive (PLI) Scheme:**
* Aimed at achieving GW-scale domestic manufacturing of high-efficiency solar PV modules.
* Outlay of Rs. 24,000 crore.
* Letters of Award issued for setting up 48,337 MW of solar PV module manufacturing units.
* **Domestic Content Requirement (DCR):**
* Mandates sourcing solar PV cells and modules from domestic sources under specific MNRE schemes (CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya Ghar: Muft Bijli Yojana).
* **Preference to Make in India in Public Procurement:**
* Purchase Preference linked with local content for the RE sector.
* Minimum local content of at least 50% required for Class-I local suppliers.
* **Basic Customs Duty (BCD):**
* Imposed on the import of solar PV cells, modules, solar inverters, and solar glass.
* **Discontinuation of Customs Duty Concessions:**
* MNRE stopped issuing Customs Duty Concession Certificates for importing materials/equipment for initial solar PV power projects setup from February 2, 2021.
* **Exemption of Custom Duty on capital goods:**
* Exemption of customs duty on import of goods specified in List 41 of notification No. 30/2024-Customs dated 23.07.2024, for the manufacturer of solar PV cells and modules
* **Solar Manufacturing in Rajasthan:**
* 7 solar module manufacturing units with an aggregate capacity of 10.12 GW have been installed in Rajasthan (as per ALMM issued on June 30, 2025).
* 10 Solar Parks with a cumulative capacity of 10,276 MW sanctioned in Rajasthan.
* Central Financial Assistance (CFA) for Solar Parks:
* Up to Rs. 20 lakh per MW or 30% of the project cost (whichever is lower).
* Up to Rs. 25 lakh per Solar Park for Detailed Project Report preparation.
**Impact Analysis:**
* **Solar PV Module Manufacturers:**
* *Impact:* Encouraged to set up or expand manufacturing units in India due to incentives like PLI, DCR, and tariff barriers on imports.
* *Action Required:* Evaluate opportunities under the PLI scheme and align with DCR requirements to benefit from government subsidies.
* **Solar Power Project Developers:**
* *Impact:* Required to use domestically manufactured solar PV cells and modules for projects under specific government schemes.
* *Action Required:* Source solar PV cells and modules from domestic manufacturers to comply with DCR requirements and be eligible for government subsidies under relevant schemes.
* **Investors in Solar Parks (in Rajasthan):**
* *Impact:* Potential to benefit from Central Financial Assistance for developing solar parks.
* *Action Required:* Apply for CFA as per the scheme guidelines to reduce project costs.
* **Importers of Solar Equipment:**
* *Impact:* Increased costs due to Basic Customs Duty on imported solar PV cells, modules, solar inverters and solar glass.
* *Action Required:* Re-evaluate sourcing strategies considering the BCD and explore domestic sourcing options.
Key Entities Referenced
Ministry of New and Renewable Energy MNRE: The Indian government ministry responsible for new and renewable energy.
Rajasthan: A state in India where solar parks and manufacturing units are located.
Approved List of Models and Manufacturers ALMM: A list issued by MNRE which contains the approved solar PV module manufacturers.
Production Linked Incentive PLI Scheme: A government scheme to encourage domestic manufacturing of high-efficiency solar PV modules.
Domestic Content Requirement DCR: A requirement under certain MNRE schemes to source solar PV cells and modules from domestic sources.
PM Surya Ghar: Muft Bijli Yojana: A scheme of the MNRE, wherein government subsidy is given for sourcing solar PV cells and modules from domestic sources.
Basic Customs Duty BCD: Duty imposed on the import of solar PV cells, modules, solar inverters, and solar glass.
Department for Promotion of Industry and Internal Trade DPIIT: The department which issued the Public Procurement Preference to Make in India Order.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 2891
ANSWERED ON 06.08.2025
INSTALLED CAPACITY OF SOLAR PV MODULE
2891. SHRI CHAVDA VINOD LAKHAMSHI
SHRI P P CHAUDHARY
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the current installed capacity of solar PV module manufacturing in the country;
(b) whether the Government has taken any steps to encourage domestic solar
manufacturing; and
(c) if so, the details thereof including any special initiatives, manufacturing units or
proposed solar parks in the State of Rajasthan?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) Presently, the installed solar PV module manufacturing capacity in the country, as per the
Approved List of Models and Manufacturers (ALMM), issued on 30.06.2025 is 91.6 GW.
(b)&(c) The Ministry of New and Renewable Energy (MNRE), Government of India, has been
consistently bringing out policies to encourage domestic solar manufacturing. Various
initiatives taken, inter-alia, include those mentioned at Annexure-I. The companies setting up
solar manufacturing capacity, can set-up their manufacturing units anywhere in India. As per
the Approved List of Models and Manufacturers (ALMM) issued on 30.06.2025, 7 solar
module manufacturing units with aggregate capacity of 10.12 GW have been installed in the
state of Rajasthan.
The Government is also implementing a scheme for “Development of Solar Parks and Ultra
Mega Solar Power Projects.” Under the scheme, there is a provision for Central Financial
Assistance (CFA) of up to Rs. 20 lakh per MW or 30% of the project cost, whichever is lower,
for development of the parks. In addition, a CFA of up to Rs. 25 lakh per Solar Park is provided
for preparation of Detailed Project Report. Under the scheme, the Government has sanctioned
10 Solar Parks of cumulative capacity 10,276 MW in the State of Rajasthan.
*****Annexure-I
Annexure referred to in reply of part (b) of the Lok Sabha Unstarred Question No.
2891 for 06.08.2025 regarding ‘Installed Capacity of Solar PV Module’
Initiatives taken to encourage domestic solar manufacturing, inter-alia, include:
(i) Production Linked Incentive (PLI) Scheme: The Government of India is
implementing the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV
Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High
Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore. Under the Scheme,
Letters of Award have been issued for setting up of 48,337 MW of fully/ partially integrated
solar PV module manufacturing units.
(ii) Domestic Content Requirement (DCR): Under some of the current schemes of the
MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya
Ghar: Muft Bijli Yojana, wherein government subsidy is given, it has been mandated to
source solar PV cells and modules from domestic sources.
(iii) Preference to ‘Make in India’ in Public Procurement: In accordance with
Department for Promotion of Industry and Internal Trade (DPIIT) ‘Public Procurement
(Preference to Make in India), Order’, MNRE had notified Purchase Preference (linked
with local content) for RE sector which, inter-alia, identified list of all goods and services
or works in respect of which there is sufficient local capacity and local competition is
available and mandated that only “Class-I local supplier” shall be eligible to bid for the
above goods/services/works with the mandate that minimum local content should be at
least 50%.
(iv) Imposition of Basic Customs Duty on import of solar PV cells, modules, Solar
Inverters and Solar Glass: The Government has imposed Basic Customs Duty (BCD)
on import of solar PV cells, modules, solar inverters, and solar glass.
(v) Discontinuation of Customs Duty Concessions: MNRE has discontinued issuance
of Customs Duty Concession Certificates for import of material /equipment for initial
setting up of solar PV power projects with effect from 02.02.2021.
(vi) Exemption of Custom Duty on capital goods for manufacture of Solar Cells and
Modules: The Government has exempted customs duty on import of the goods specified
in List 41 of the notification No. 30/2024-Customs dated 23.07.2024, for the manufacturer
of solar PV cells and modules.