Executive Summary:
This document summarizes the Indian government's efforts to promote self-reliance in solar energy manufacturing, specifically solar photovoltaic (PV) modules. It addresses a parliamentary question regarding dependence on Chinese solar equipment and outlines various government initiatives to boost domestic manufacturing. The statement includes data on solar module imports from China in FY 2024-25 and details policy measures implemented by the Ministry of New and Renewable Energy (MNRE).
Key Points / Main Content:
Solar PV Manufacturing Capacity:
The country's solar PV module manufacturing capacity is around 100 GW as of August 13, 2025, according to the Approved List of Models and Manufacturers (ALMM). This capacity is deemed sufficient to meet domestic demand.
Solar Imports from China (FY 2024-25):
In FY 2024-25, India imported solar PV modules from China valued at USD 1,696.77 million, with a quantity of 352.57.
HS Code: 85414300.
Government Initiatives for Self-Reliance:
Production Linked Incentive (PLI) Scheme:
The government is implementing a PLI scheme for High-Efficiency Solar PV Modules with an outlay of Rs. 24,000 crore.
Letters of Award have been issued for setting up 48,337 MW of solar PV module manufacturing units.
Domestic Content Requirement (DCR):
Some MNRE schemes (CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya Ghar: Muft Bijli Yojana) mandate the use of domestically sourced solar PV cells and modules where government subsidy is given.
Preference to Make in India:
Purchase Preference linked with local content is notified for the RE sector, mandating that only Class-I local suppliers are eligible to bid for goods/services/works where sufficient local capacity and competition are available, with a minimum local content of 50%.
Customs Duties:
Basic Customs Duty (BCD) is imposed on the import of solar PV cells, modules, solar inverters, and solar glass.
Customs Duty Concessions:
MNRE has discontinued issuing Customs Duty Concession Certificates for importing materials/equipment for initial solar PV power project setups, effective February 2, 2021.
Exemption of Custom Duty:
Customs duty is exempt on capital goods for manufacturing solar PV cells and modules, as specified in List 41 of notification No. 30/2024-Customs dated July 23, 2024.
Impact Analysis:
Domestic Solar Manufacturers:
Impact: Benefit from increased demand due to DCR, purchase preference, and import duties on foreign products. The PLI scheme will help to increase domestic manufacturing capacity.
Action Required: Expand manufacturing capabilities to meet demand, apply for and utilize the PLI scheme, and ensure compliance with DCR requirements.
Solar Project Developers:
Impact: May face increased costs due to the requirement to use domestic components in certain projects and import duties on foreign equipment.
Action Required: Factor in potential cost increases in project planning, source components from domestic manufacturers to comply with DCR requirements in relevant schemes, and stay informed about changes in customs duties.
Consumers (Beneficiaries of Solar Power):
Impact: May indirectly experience changes in the cost of solar power, influenced by the government's policies on domestic manufacturing and import duties.
Action Required: No direct action required but should be aware of potential cost implications when considering solar energy adoption.
Government (MNRE):
Impact: Responsible for implementing and monitoring the effectiveness of the policies aimed at promoting domestic solar manufacturing.
Action Required: Continue to refine and adjust policies based on market conditions and progress towards self-reliance, monitor import data, and ensure effective implementation of the PLI scheme and DCR requirements.
Key Entities Referenced
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for new and renewable energy.
China: Country from which solar equipment is being imported.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
Production Linked Incentive (PLI) Scheme: A Government of India scheme to encourage domestic manufacturing of high-efficiency solar PV modules.
Domestic Content Requirement (DCR): A requirement under MNRE schemes to source solar PV cells and modules from domestic sources where government subsidy is given.
Basic Customs Duty (BCD): Duty imposed by the Government on the import of solar PV cells, modules, inverters and solar glass.
PM Surya Ghar: Muft Bijli Yojana: A scheme where government subsidy is given and it has been mandated to source solar PV cells and modules from domestic sources.
Department for Promotion of Industry and Internal Trade (DPIIT): Department issuing orders related to Preference to Make in India in Public Procurement.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
STARRED QUESTION NO. 399
ANSWERED ON 20/08/2025
MANUFACTURING OF SOLAR PV MODULES
*399. SHRI UJJWAL RAMAN SINGH
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the dependence on China-made solar equipment has not ended yet despite continuous
efforts made by the Government to become self-reliant in the manufacturing of solar photovoltaic
(PV) modules;
(b) if so, the detail thereof;
(c) the number of solar energy related equipments imported from China during the year 2024-25;
and
(d) the various steps being taken by the Government for making the country self-reliant in the field
of solar energy?
ANSWER
THE MINISTER OF NEW & RENEWABLE ENERGY AND CONSUMER AFFAIRS, &
FOOD AND PUBLIC DISTRIBUTION
(SHRI PRALHAD JOSHI)
(a) to (d) A Statement is laid on the Table of the House.
*****STATEMENT
Statement referred to in reply to parts (a) to (d) of the Lok Sabha Starred
Question No. 399 to be answered on 20.08.2025 regarding ‘Manufacturing of Solar PV
Modules’
(a) & (b): The solar photovolatic module manufacturing capacity in the country, as per
Approved List of Models & Manufacturers (ALMM) List-I for solar PV modules, issued on
13.08.2025 is around 100 GW, which is sufficient to cater to the domestic demands.
(c): The details of solar modules imported in the country during FY 2024-25 from China, as
per the website pertaining to export-import data bank of Department of Commerce, are given
below.
Quantity Value of Imports
(in lakhs) (in USD million)
Solar PV Modules 352.57 1,696.77
(HS Code 85414300)
Source: Directorate General of Commercial Intelligence and Statistics (DGCI&S)
(d) The Ministry of New and Renewable Energy (MNRE), Government of India, has been
consistently bringing out policies for making the country self-reliant in the field of solar
energy. Various initiatives taken, inter-alia, include those mentioned at Annexure-I.Annexure-I
Annexure referred to in reply of part (d) of the Lok Sabha Starred Question No. 399 to
be answered on 20.08.2025 regarding ‘Manufacturing of Solar PV Modules’
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 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, solar PV 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.