Full value chain solar PV manufacturing in India - TERI's recommendations

13 Aug 2019

The paper recommends development of 15 GW full value chain solar manufacturing capacity in India by 2024

Solar pv manufacturing
Silicon crystals and ingots used for solar cell manufacturing

TERI has come up with a policy paper titled ‘Solar PV Manufacturing in India: Silicon Ingot & Wafer PV Cell - PV Module' which suggests that India should take up full value chain solar manufacturing in a phased manner.

It's main recommendations are that the government should consider prioritising PV manufacturing value chain as a strategic industry and local manufacturing capacity of 15 GW of ‘full value chain silicon ingot to solar modules' should be operational at competitive prices by 2024. For this it suggests initiating a Phased Manufacturing Programme (PMP), under the Make in India plan.

With a national goal of 1,00,000 MW of solar power by 2022 and continuing the growth trend beyond to be able to achieve 40% of non-fossil fuel power, creation of domestic manufacturing base assumes critical significance. Leveraging the size of domestic market is one of the key strategies adopted world over and China has used it to emerge as the global manufacturing hub for various articles including solar.

Government agencies have always played significant role in developing the market and establishing procurement strategies. The Government of India made a beginning to require bidders to use domestically manufactured solar PV modules in first ever solar bid of 150 MW, except for thin film and Concentrator PV technology in 2010. The stipulation was further strengthened in the second bid of 350 MW to require bidders to use only the domestically produced solar cells and modules. Recent bids by Solar Energy Corporation of India (SECI) too are linking setting up manufacturing capacity with assured Power Purchase Agreements (PPAs).

This paper takes an overview of global solar PV industry and its evolution, and compares Indian PV manufacturing with that of China before coming up with its set of recommendations.

The paper has been published under the Energy Transitions Commission (ETC) India programme.

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