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,


  • 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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