MNRE's New Policy on Domestic Solar Cells
The Ministry of New and Renewable Energy (MNRE) has set a deadline of June 2026
After this date, solar companies must use only India-made solar photovoltaic (PV) cells in panels for government procurement programmes.
The MNRE will introduce "List-II," which will include companies that manufacture solar cells in India.
This list will be effective from June 2026.
Programs like the ₹75,000 crore PM rooftop-solar scheme and PM Kusum will require panels from domestic manufacturers approved by the MNRE.
Cost Implications and Challenges
Indian solar companies currently rely on imported solar cells from China and Southeast Asia, which are cheaper than domestic options.
Indian-made solar cells are 1.5 to 2 times more expensive than imported ones.
This price difference could increase the cost of solar projects by ₹5-10 million per megawatt, raising tariffs by 40-50 paise per unit.
Despite the push for domestic production, India still lacks the capacity to manufacture critical components like wafers and ingots and will continue to depend on imports for these.
Solar Capacity Growth
India has installed 92 GW of solar capacity and aims to increase solar-module manufacturing to 80 GW by 2027.
Solar-cell manufacturing capacity is expected to grow to 60 GW by FY27 with ₹30,000 crore in investments.
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