REconnect Summit: Experts Highlight PV Manufacturing’s Role in India’s Net-Zero Vision

Domestic PV manufacturing plays a vital role in India's journey toward a net-zero future. By producing solar panels locally, India will reduce its dependency on imports, ensuring energy security. To promote domestic PV production, government efforts such as the PLI scheme, among others, aim to boost manufacturing capacity, create jobs, and make India a hub for solar production. 

To this end, the second edition of the REconnect Summit 24, organised by Energetica India magazine in Nagpur on December 4, focussed on the topic 'Domestic PV Manufacturing and Net Zero Future' during its second panel discussion.

The session experts included Jaideep Malaviya, Managing Director, Malaviya Solar Energy Consultancy and Director, International Solar Energy Society (ISES), Germany; Ankita J.P. Shroff, Founder, Sustain and Save Pvt. Ltd.; Dr. Khedkar Mohan Krishnarao, Vice-President, Society of Energy Engineers and Managers (SEEM); Dr. Satish Suri, Managing Director, Greenpath Energy & Sustainability Services; Avinash Deshmukh, Regional Manager - Maharashtra and M.P., Icon Solar-En Power Technologies Pvt. Ltd. and Mohammad Asif Patel, General Manager, Business Development, DhaSh Group of Companies.

The panel discussed the challenges faced by manufacturers in scaling up production, not only in Maharashtra but across the nation. Responding to this, Suri said, “Things are changing now. Earlier we had numerous challenges, but with the Indian government’s anti-dumping measures against Southeast Asia, manufacturers are getting little relief. But some limitations still exist with local supply chains and financial supports.”

He continued, “Due to these limitations, there are still some challenges. However, the Indian manufacturing industry has evolved from 20 GW to almost 70 GW now. This shows that manufacturing is going on the right track without facing a lot of challenges.”

Shroff opined, “I think the biggest problem in Maharashtra is the kind of rates. A lot of other states, like Chhattisgarh, among others, are taking up bigger manufacturing industries. So, I think if we focus on tariff rates from the government and subsidies, or set up more special economic zones where you can actually get a subsidized base for everything, I feel it can be a big support system for the manufacturing sector.”

Malaviya emphasised, “If solar power is already cheaper, why do we have costly electricity? We can generate our own power instead of relying on the grid. While electricity costs in India are high compared to neighboring countries, this challenge can be overcome.”

Further discussing the benefits of government schemes such as the PLI scheme and the challenges associated with the scheme, Deshmukh said, “The PLI scheme has given a lot of opportunities to new manufacturers coming into this sector. Due to this scheme, during 2020-21, many manufacturers entered this sector and are gradually growing. Also, this has helped us achieve seven-digit manufacturing of new models. Further, this scheme will help us grow in the approaching years too.”

Suri also pointed out, “The production manufacturing capacity has increased in recent years due to PLI. Earlier, we used to see that corporate houses were not coming into this due to policies and less lucrative returns.”

“Now, bringing this PLI is not only helping us to increase our economic scale, but it's also creating more employment, which is the need of the hour. This will help build a complete ecosystem. So, such policies will help us become self-reliant and reduce our dependency on imports," he said.

Emphasising further on the PLI scheme, Suri said, “With the launch of the INR 20,000 crore investment in PLI, we will move beyond model manufacturing and focus on backward integration. The industry is now beginning self-production of wafers and exploring the use of polysilicon. Corporate manufacturing is also increasing to meet the demands of solar module production. This is a comprehensive approach with a major focus on making India more self-reliant and creating more employment opportunities. I believe it is a positive move.”

Malaviya also informed that the PLI scheme is now being extended to cell manufacturing. “PLI is a win-win situation, and hopefully, it will eventually cover the entire value chain, from cradle to cradle. In the next five years, we should even see polysilicon production happening here,” he added.

The experts further discussed India’s ambitious target of 350 GW, with plans to also focus on exports. They emphasized that more people need to adopt the initiative and questioned how close India is to competing with neighboring countries, especially China, in the market. The discussion also touched upon the target for solar energy exports, with an estimated market value of USD 30 billion. Experts anticipate that India will secure a significant share of this market. The experts also discussed how India can bridge the gap and compete with neighboring countries in this sector.

Krishnarao noted, “Global competitiveness requires economies of scale, a local supply chain, and skilled manpower, all of which are addressed by the PLI. With ongoing technological advancements, international collaborations, and technology transfers, we are on par with neighboring countries. While other countries may have excess capacity, India is emerging as a competitive manufacturing hub, especially in light of geopolitical shifts and strained relations with China. In the next year or two, as India’s backward integration progresses, we will become even more competitive and add greater value to the sector.”

“We are talking about competing with our neighboring country. We were talking about being progressive enough. So, I am sure that we have all the right infrastructure with us,” he added.

Malaviya also pointed out that India has the necessary skilled manpower, steady skills, land availability, and excellent logistics infrastructure to achieve its goals. He expressed confidence, stating there is no reason why India cannot succeed in its solar energy ambitions.

Commenting on the government's role in boosting India’s solar energy exports, the question was raised about whether offering more export incentives or holding promotional roadshows could help improve the country’s image and increase exports. Shroff said, “India is actively engaging on the global stage, particularly in sustainability efforts, including events like COP 29 and other international fairs. Sustainability is ingrained in our culture, and we are present in every related initiative. Supporting these efforts is key to maintaining our global presence. I believe we are on the right path to achieving our sustainability goals.”

“With 127 companies adopting net-zero, India is ranked 6th in the world when it comes to adopting net zero,” she said.

Commenting on the actionable steps to be taken by business owners to align their operations with India's net-zero targets, she said, “India has requested an extension of another 20 years. I think every industry, every corporate needs to first set their targets for net zero. Let it be internally. The listed top 500 companies have to do their BRSR reporting. But every industry needs to get their ESG in-house corporate sustainability report done to understand where exactly their sustainable practices stand.”

She stated, “Sustainability shouldn’t be something imposed by the government; it must be a leader's responsibility. It needs to be embedded in the DNA of every individual, from employees on the shop floor to organisational leaders. If leaders truly integrate sustainability into their core values, it can drive meaningful change. Most importantly, this commitment should extend throughout the entire value chain.”

Experts discussed India’s net-zero 2070 goal, emphasizing the pivotal role of solar power and green hydrogen in achieving it. Highlighting hydrogen’s versatility, Suri explained, “Hydrogen can be compressed and transported. For instance, instead of transmission lines from Karnataka to Kerala, we could have a hydrogen-polymer pipeline from Nagpur to Mumbai, which could be tapped and converted into electricity using fuel cells. Looking ahead 40-50 years, solar and wind energy, coupled with electrolysis, will rely heavily on AI and ML for optimising electrolyser operations, placement, compression, and economic feasibility. For example, Western Australia is planning a 1,200 km hydrogen pipeline from Perth to Dalyan, and similar studies are underway in Melbourne. India may need comparable studies before implementation. Effective planning will determine the optimal use of solar and wind resources, enabling hydrogen production, storage, and transport to meet net-zero objectives.”

Further, Krishnarao talked about renewable energy courses for the younger generation and the human resources for the RE sector. He said, “The courses have already started. Industry and academia partnership is required to progress further.”

Experts emphasised the importance of public-private collaboration to scale up manufacturing effectively, highlighting rapid technological changes as a significant challenge for the industry. Suri stated, “The government’s investment, combined with industry-driven innovation and expertise, is crucial to reducing the timeline for creating a complete ecosystem by 2030.”

He added, “If businesses take a step further, developing infrastructure and technology parks while fostering innovation, skilled manpower, and global investments, it could significantly enhance competitiveness. Such efforts could accelerate achieving net-zero from 2070 to as early as 2038.”

Commenting on strategies for adopting net-zero practices, Shroff said, “While the ultimate target is 2070, the focus should be on immediate actionable steps. The first step is to assess your organisation’s carbon footprint. Understand CO2 emissions, waste diversion, and water consumption within your plant and office. Collect data on waste management, water usage, recycling efforts, and the presence of sewage treatment plants (STPs). Evaluate whether energy from solar is being reused or if dependency on the grid persists. Once these parameters are clear, the next step is to strategize effectively."

In conclusion, experts emphasised the importance of industrial decarbonisation and the adoption of clean fuel vehicles to reduce CO2 emissions. The session concluded with a focus on a futuristic vision, collective efforts, clear direction for all stakeholders, and maintaining transparency to achieve net-zero emissions by 2070.