Executive Summary:
The Ministry of New and Renewable Energy (MNRE) addresses solar power generation schemes to achieve 280 GW by 2030, import dependency, and initiatives for indigenous production, including in Uttar Pradesh. The government is implementing the Production Linked Incentive (PLI) Scheme with an outlay of Rs. 24,000 crore, and Uttar Pradesh has introduced renewable energy policies. Various operational schemes promote solar energy, and initiatives are in place to boost domestic manufacturing.
Key Points / Main Content:
Solar Power Generation Schemes:
* Government aims to achieve 280 GW of solar power by 2030.
* Various schemes promote and accelerate solar energy capacity.
* Schemes for Solar Parks and Ultra-mega Solar Power Projects develop infrastructure for utility-scale solar projects.
* PM-Surya Ghar: Muft Bijli Yojana provides free electricity up to 300 units monthly for one crore households via rooftop solar installations.
* Production Linked Incentive (PLI) scheme supports manufacturing capacity of High-Efficiency Solar PV Modules.
* PM-KUSUM scheme supports decentralized solar plants and solar agriculture pumps, benefiting farmers, states, and DISCOMs.
* CPSU Scheme Phase-II supports grid-connected solar projects by government producers using domestic solar PV cells and modules.
* New Solar Power Scheme targets tribal habitations under PM-JANMAN and DA-JGUA, providing off-grid solar lighting.
Domestic Manufacturing Initiatives:
* MNRE is implementing policies to boost domestic manufacturing of solar modules and components.
* PLI Scheme offers Rs. 24,000 crore to achieve GW-scale manufacturing capacity in High-Efficiency Solar PV modules; Letters of Award issued for 48,337 MW of manufacturing units.
* Domestic Content Requirement (DCR) mandates sourcing solar PV cells and modules domestically for schemes like CPSU Scheme Phase-II, PM-KUSUM, and PM Surya Ghar.
* Preference to Make in India in Public Procurement gives preference to Class-I local suppliers with a minimum local content of 50%.
* Basic Customs Duty (BCD) is imposed on the import of solar PV cells, modules, solar inverters, and solar glass.
* Customs Duty Concession Certificates for import of material/equipment for initial solar PV power project setup have been discontinued since 02.02.2021.
* Customs duty is exempt on capital goods for manufacturing Solar Cells and Modules.
Uttar Pradesh Specific Initiatives:
* Manufacturers under PLI Scheme can set up plants anywhere in India, including Uttar Pradesh.
* Uttar Pradesh introduced Solar Energy Policy 2022, Bio Energy Policy 2022, and Green Hydrogen Policy 2024 to promote renewable energy projects.
Impact Analysis:
Solar Power Project Developers:
* Impact: Benefit from infrastructure development, financial assistance, and favorable policies.
* Action Required: Participate in relevant schemes, adhere to domestic content requirements, and leverage incentives for local manufacturing.
Domestic Manufacturers of Solar Equipment:
* Impact: Increased demand due to DCR and procurement preferences, financial incentives through PLI scheme, and protection via customs duties.
* Action Required: Expand manufacturing capacity, improve product quality, and take advantage of government incentives.
Farmers and Households:
* Impact: Access to subsidized solar power, potential for income generation through decentralized solar plants, and reduced electricity costs.
* Action Required: Participate in PM-KUSUM and PM-Surya Ghar schemes.
Government of Uttar Pradesh:
* Impact: Opportunity to attract investments in renewable energy, promote local manufacturing, and improve energy access.
* Action Required: Implement and promote state-level policies, facilitate land acquisition and approvals for projects, and collaborate with central government initiatives.
Key Entities Referenced
Ministry of New and Renewable Energy: The Indian government ministry responsible for new and renewable energy.
Production Linked Incentive PLI Scheme for High Efficiency Solar PV Modules: A Government of India scheme to promote domestic manufacturing of high-efficiency solar PV modules.
Uttar Pradesh: A state in India, mentioned as a potential location for solar manufacturing units and implementing renewable energy policies.
PM-Surya Ghar: Muft Bijli Yojana: A scheme for installing rooftop solar panels and providing free electricity to households.
PM-KUSUM Scheme: A scheme for setting up decentralized solar power plants and solarizing agriculture pumps.
Central Public Sector Undertaking CPSU Scheme Phase-II: A government producer scheme for setting up grid-connected solar photovoltaic power projects.
Basic Customs Duty: A duty imposed by the government on the import of solar PV cells, modules, solar inverters, and solar glass.
China: Country that domestic companies are dependent on for solar modules, inverters and other components related to solar energy
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 543
ANSWERED ON 23/07/2025
SCHEMES FOR SOLAR POWER GENERATION
543. SHRI DEVESH SHAKYA
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the details of the major schemes and programmes launched by the Government
with a view to achieve 280 GW of solar power in the country by the year 2030;
(b) whether the Government is aware that domestic companies are dependent on
other countries especially China for solar modules, inverters and other
components related to solar energy, thereby affecting the competitive ability of
these companies; and
(c) if so, the initiatives proposed by the Government in the coming year for indigenous
production and developing complete manufacturing ecosystem of solar energy
equipment, especially for setting up local manufacturing units in districts like
Etawah, Auraiya, Kannauj, Farrukhabad, Mainpuri, Etah and Kasganj of Uttar
Pradesh?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a): The Government has launched various schemes to promote and accelerate solar energy
capacity in the country. The list of some of the major operational scheme is given at Annexure-I
(b) The Ministry of New and Renewable Energy (MNRE), Government of India, has been
consistently bringing out policies to boost domestic manufacturing capacity of solar modules,
inverters and other solar components related to solar energy and thereby reducing the import
dependency. Various initiatives taken, inter-alia, include those mentioned at Annexure-II.
(c) 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. The manufacturers selected under
PLI Scheme for High Efficiency Solar PV Modules, can set-up their manufacturing plants
anywhere in India, including Uttar Pradesh. Uttar Pradesh has also brought out the Uttar
Pradesh Solar Energy Policy 2022, Uttar Pradesh Bio Energy Policy 2022, and Uttar Pradesh
Green Hydrogen Policy 2024, for promotion of renewable energy projects in the state.
*****Annexure-I
Annexure referred to in reply of part (a) of the Lok Sabha Unstarred Question No.
543 for 23.07.2025 regarding ‘Schemes for Solar Power Generation’
List of Operational Schemes to Promote Solar Energy
1. Schemes for Development of Solar Parks and Ultra-mega Solar Power Projects.
Under the scheme, the infrastructure such as land, roads, power evacuation
system water facilities are developed with all statutory clearances/approvals.
Thus, the scheme helps expeditious development of utility-scale solar projects in
the country.
2. PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar and providing free
electricity up to 300 units every month for One Crore households.
3. Production Linked Incentive scheme ‘National Programme on High Efficiency
Solar PV Modules’ for achieving manufacturing capacity of Giga Watt (GW) scale
in High Efficiency Solar PV modules (Tranche- I & II).
4. PM-KUSUM Scheme for setting up decentralized solar or other renewable energy
power plants, installation of stand-alone solar agriculture pumps, and solarization
of existing grid-connected agriculture pumps, including feeder-level solarization.
The scheme benefits not only farmers but also the States and DISCOMs.
5. Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government
Producer Scheme) for setting up grid-connected Solar Photovoltaic (PV) Power
Projects by Government Producers, using domestically manufactured solar PV
cells and modules, with Viability Gap Funding (VGF) support, for self-use or use
by Government/ Government entities, either directly or through Distribution
Companies (DISCOMS).
6. New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti
Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA) with a provision for providing
off-grid Solar Lighting where electricity supply through grid is not techno-
economically feasible.Annexure-II
Annexure referred to in reply of part (b) of the Lok Sabha Unstarred Question No.
543 for 23.07.2025 regarding ‘Schemes for Solar Power Generation’
Initiatives taken to increase domestic production of solar PV modules and other
renewable energy equipment, 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.
(v) 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.