India is finally becoming a clean energy superpower

The Indian government’s imposition of Basic Customs Duty (BCD) on solar modules (40%) and solar cells (25%), effective April 2022, is a significant move towards achieving self-reliance in the solar manufacturing sector under the ‘Atmanirbhar Bharat’ initiative. This is expected to bolster confidence in local suppliers, supported by the Approved List of Models and Manufacturers of PV Modules (ALMM).

Leading solar panel manufacturers

	Current Capacity		Post Capex Capacity
Company	Module Capacity	Cell Capacity	Module Capacity	Cell Capacity
Waaree Energies	12 GW	5.4 GW	21 GW	11.4 GW
Vikram Solar	3.5 GW	–	4.5 GW	3 GW
Premier Energies	4.13 GW	2 GW	8 GW	6 GW
Adani Solar	4 GW	4 GW	10 GW	10 GW
TATA Power Solar	3.73 GW	2.26 GW	4.9 GW	4.9 GW

Solar module imports fell by 73% in the second quarter of 2024, and exports decreased by 31.3% compared to the previous quarter. This significant drop in imports is attributed to the reimposition of the ALMM order, which took effect on April 1, 2024. Additionally, solar cell imports declined by 16.7%, while exports of solar cells surged by 90% compared to the previous quarter. This decrease is primarily due to the reimplementation of the ALMM order and an increase in domestic demand as this allowed smaller players to participate and export solar modules, which has led to higher consumption within the local market.

By 2026, the country will be able to assembly 172 GW of panels per year, according to Mercom India Research, a renewables consultancy. That’s sufficient to meet its own projected needs well into the 2040s, even on a pathway that takes the world to zero emissions. Globally, we’re already installing enough solar and buying enough electric vehicles to avoid catastrophic climate change. Hitting Modi’s 500 GW target would be one more piece of the puzzle to avert that outcome.

Ranked 4th globally in solar power capacity with installed capacity at 81.81 GW, constituting 63.4% of its total renewable energy generation, the country’s solar energy surge is driven by government initiatives and policies aiming to achieve a 500 GW renewable energy capacity by 2030.

Top 10 Solar Power-Generating Countries in the World

Following are the top 10 solar power-producing countries in the world in 2023 as per the Ember “Global Electricity Review’.

1. China
2. United States of America
3. India
4. Japan
5. Germany
6. Brazil
7. Australia
8. Spain
9. Italy
10. South Korea

India is one of the few countries planning to triple renewable capacity by 2030. According to Ember’s analysis, annual capacity additions need to significantly increase for India to meet this capacity target. As of August 2024, India holds the fourth position globally in solar Photovoltaic deployment, with an installed capacity of 89.4 GW. In 2023, it was the third-largest solar energy producer, following China (710 GW), the USA (200 GW), and Germany (90 GW). With abundant sunshine for over 300 days a year in many states, India has significant solar potential.

In the second quarter of 2024, the all-inclusive domestic price for mono PERC 500 Wp modules, including freight charges and GST, was INR 19 per watt peak (Wp). This represents a 31.7% drop compared to the same period last year. Similarly, bifacial modules were priced at INR 19.2 per Wp, showing a 4.5% decline from the previous quarter and a 35% reduction year-over-year.

Domestic Content Requirements (DCR) are a key policy implemented by the Indian government, mandating that a specific percentage of solar components—such as cells and modules—used in government-funded projects must be sourced from domestic manufacturers. This requirement has been progressively increasing, with targets set at 45% for projects starting in 2025, 50% in 2026, and 55% thereafter. The DCR aims to enhance domestic manufacturing, create jobs, and reduce import dependency. While some exemptions exist, the DCR applies to grid-connected solar power plants, rooftop installations on government buildings, and off-grid solutions.

Power minister Manohar Lal emphasised the significance of renewable energy, stating, "This is not just about increasing capacity; it's about reimagining our entire energy landscape," and highlighted the goal of 500 GW of non-fossil energy by 2030.

Conclusion

India is standing on the threshold of a green energy revolution that can light up a new era of energy, economic and environmental security. India has made a good start. Among its many ambitious policies include plans for more resilient grids and the deployment of large-scale energy storage to retain intermittent solar and wind power for when it’s needed. The country also aims to become, by 2030, a 100% electric vehicle nation.

Sanjib Roy
https://www.linkedin.com/in/ist-aevt/