US$7.2 bn investment needed for solar modules
To promote the integrated manufacturing of solar modules, India needs US$ 7.2 billion in the next 3-4 years. It is estimated that INR 2.5 lakh crore revenues will be generated by 2030 from selling 150 GW at INR 15/Wp (Watt pack), and would generate the employment opportunity for around 41,000 workers.
A report by CEEW Centre for Energy Finance (CEEW-CEF) states “India’s push to indigenise 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.” Rishabh Jain, Programme Lead at CEEW, noted that solar energy is the keystone of India’s goal to achieve 500 GW of non-fossil-based capacity by 2030 and long term zero ambition. He also stated that the ongoing geopolitical and energy crises highlight the need to reduce import reliance and developing a reliable and robust domestic supply chain for industries critical to the energy transition.
Central government has allocated an amount of US$ 3.2 billion through the production-linked incentives scheme and levy the basic custom duty of 25% to 40% on the solar cells and modules to give a spur to domestic solar manufacturing.