Boosting Domestic Solar Production: Will New Rules Help?
GS-3 Mains
Short Notes or Revision Notes
Question : Analyze India’s solar power ambitions, including targets for electricity generation from non-fossil fuels and solar power by 2030. Evaluate the challenges to domestic solar production,
Background:
- The Ministry of New and Renewable Energy (MNRE) introduced the Approved Models and Manufacturers (AMM) list in 2019.
- This list certifies legitimate solar panel manufacturers and excludes mere importers or assemblers.
Benefits of AMM Listing:
- Eligibility for government tenders and solar power schemes:
- PM Surya Ghar Muft Bijli Yojana (rooftop solar subsidies)
- PM KUSUM (solar pumpsets and rural electrification)
- Production Linked Incentive Scheme (incentivizes domestic solar component manufacturing)
India’s Solar Power Ambitions:
- Target: 500 GW of electricity from non-fossil fuels by 2030 (almost half of India’s needs).
- Solar power target: At least 280 GW by 2030 (requires adding 40 GW annually).
Challenges to Domestic Production:
- Limited capacity for raw materials (ingots, wafers) – dependence on imports.
- Lack of skilled labor for high-quality solar components.
- Higher cost of domestic production due to fragmented setup and lack of economies of scale.
AMM List and Import Reduction:
- The AMM list aims to restrict imports, especially from China (dominates 80% of the global market).
- Only AMM-listed solar modules can be used in government projects and net-metering installations.
Current Status:
- India achieves self-sufficiency in solar panel production but lags in solar cell manufacturing.
Way Forward:
- The AMM list is a step towards self-reliance in solar technology.
- To meet ambitious targets, India needs to:
- Increase domestic solar cell production capacity.
- Address skill gaps in the workforce.
- Encourage economies of scale for cost-competitive domestic production.
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