To protect the domestic companies from cheap and sub-standard imports, and to boost domestic manufacturing, the Indian government has set up a team to certify all solar power generation equipment makers who are willing to do business in the world’s largest green energy market.
The implementation of new solar power generation equipment sourcing guidelines will start on 1 April and manufacturers are lining up for certification. India would require $80 billion as an investment in 2022 to initiate a renewable energy program. This figure is expected to grow to $300 billion from 2023-2030. India has imported $2.16 billion worth of solar photovoltaic (PV) cells, panels, and modules in 2018-19.
Eligibility criteria
The manufacture and solar module approved by the Bureau of Indian Standards (BIS) and the ministry of new and renewable energy (MNRE) and are in the approved list of modules and manufacturers (ALMM) will be eligible for government-supported schemes including projects from where electricity distribution companies procure solar power for supply to their consumers, according to the Centre’s directive.
This move will ensure involvement by a large number of the domestic and global manufacturer which will include Chinese major players which will help in maintaining quality by avoiding the use of low-quality imported products.
The Chinese companies have been dominating a major part of the domestic market of solar components. As the percentage of increase in total imports of solar products in India from China and Malaysia counts for more than 3%, the government imposed a Safeguard duty of 25% from 30 July 2018 on solar cells and modules imported.
In 2017, many developers from the domestic market rejected poor quality Chinese solar modules sold to them on a discount. These modules nearly account for 60% of a solar power project’s total cost.
“The Indian government will inspect whether the manufacturer is making on its own. We will protect our industry. After they meet our standards, we will put them on the ALMM list. This will apply to all manufacturers situated in India or overseas. There are BIS standards and a team has been constituted by the ministry to inspect such facilities. Applications have started coming,” said MNRE secretary Anand Kumar.
Making India one of the top renewable energy producers globally, clean energy projects now account for more than a fifth of India’s installed power generation capacity. The Andhra Pradesh government decided to go through renewable energy contracts again has put global investors in a state of tension.
The move by the Center will also keep a check on some manufacturers that claim to manufacture cells and modules that have been produced elsewhere.
According to the reports, the MNRE team will conduct an audit and will check the manufacturing facility before including modules and manufacturers in the ALMM list for two years. A similar scheme, the Registered List of Models and Manufacturers, exists for the Indian wind energy sector.
India has a domestic manufacturing capacity of 3 GW for solar cells and 10 GW for wind power equipment.
