Centre Sets June 2026 Deadline for Solar Firms to Use India-Made Solar Cells

Centre Sets June 2026 Deadline for Solar Firms to Use India-Made Solar Cells

Sub: Eco

Sec: Msc

The Ministry of New and Renewable Energy (MNRE) has mandated that starting June 2026, solar companies participating in government procurement programs must exclusively use India-made solar photovoltaic (PV) cells.

This move is part of a larger effort to reduce reliance on imports, particularly from China and Southeast Asia, and promote domestic manufacturing in the renewable energy sector.

• Domestic Manufacturing Focus:
  • Solar firms will need to source PV cells from manufacturers listed under the Approved List of Module Manufacturers (ALMM).
  • MNRE is set to issue List-II, specifically for solar PV cell manufacturers, effective from June 1, 2026.
• Current Manufacturing Capacity:
  • India’s installed solar PV cell capacity: 5.8 GW.
  • Installed solar module capacity: 63 GW.
  • Solar capacity installed in India: 92 GW.
• Projected Growth:
  • By FY27, the solar module capacity is expected to reach 80 GW, while solar cell capacity is projected to rise to 60 GW, with an estimated investment of ₹30,000 crore.
• Impact on Solar Costs:
  • Indian solar cells are 1.5 to 2 times costlier than imported counterparts.
  • Higher costs could increase capital investment by ₹5-10 million per megawatt and raise tariffs by 40-50 paise per unit, according to Crisil Market Intelligence and Analytics.
• Government Subsidy Programs:
  • Schemes such as the PM Rooftop Solar Program and PM-KUSUM will require participants to use domestically manufactured solar panels to avail subsidies.
• Dependence on Imports:
  • While India is boosting its solar manufacturing capabilities, it still depends on China and Southeast Asia for critical components like wafers and ingots.

Challenges and Implications

• Cost Implications:
  • Relying on domestic solar cells may make solar power projects more expensive, potentially impacting tariff affordability and adoption rates.
• Manufacturing Gaps:
  • India currently lacks the infrastructure to produce essential solar cell components like wafers and ingots, necessitating continued imports in the near term.
• Market Dynamics:
  • Increased domestic production could stimulate investment in the sector but may also face hurdles such as price competitiveness and technology upgrades.
• Strategic Push for Self-Reliance:
  • This mandate aligns with India’s broader Atmanirbhar Bharat initiative, aiming to reduce dependence on imports and boost local industries.

PM-KUSUM Scheme

• Launched: 2019
• Objective: De-dieselization of the farm sector, energy security for farmers, and income enhancement.
• Commitment: Aligns with India’s Intended Nationally Determined Contributions (INDCs) to achieve 40% non-fossil fuel electric power capacity by 2030.
• Nodal Ministry: Ministry of New and Renewable Energy (MNRE).

Eligible Beneficiaries:

• Individual farmers.
• Groups of farmers.
• Farmer Producer Organizations (FPOs).
• Panchayats.
• Co-operatives.
• Water User Associations.