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India Needs USD 7.2 Bin Investment for its Domestic Solar Module Manufacturing

According to a report released by CEEW Centre for Energy Finance, the push to improve local manufacturing could help domestic module manufacturers generate USD 30 billion (Rs 2.3 lakh crore) in revenue by 2030

May 13, 2022. By News Bureau

According to a report released on Thursday, investments of USD 7.2 billion will be required in the next three to four years to boost integrated solar module production in India.

According to a report produced by CEEW Centre for Energy Finance, the push to boost local manufacturing could enable domestic module makers to create money by 2030 by selling 150 GW at Rs 15/Wp (Watt peak) and creating jobs for roughly 41,000 workers (CEEW-CEF).

"India's push to indigenize the solar manufacturing value chain would require CAPEX investments worth USD 7.2 billion (Rs 53,773 crore) over the next three to four years," it said.

Solar energy is the cornerstone of India's plan to develop 500 GW (GigaWatt) of non-fossil-based capacity by 2030 and long-term net-zero aspiration, according to Rishabh Jain, Program Lead at CEEW.

The ongoing geopolitical and energy problems, he said, highlight the significance of minimising import dependency and building a stable and robust domestic supply chain for industries vital to the energy transition.

The government has already announced a number of measures to promote domestic solar manufacturing in FY 2021-22, including allocating USD 3.2 billion (Rs 24,000 crores) through the production-linked incentives scheme and imposing a basic customs duty of 25% and 40% on all imports of solar cells and modules, respectively.

Tags:

Solar PV

CEEW

Centre for Energy Finance

Finance

Investment

Module manufacturers

Council on Energy, Environment and Water