The Indian government is promoting the expansion of its domestic photovoltaic industry chain, attempting to address the critical need for polycrystalline silicon and reduce dependence on Chinese supplies.
According to a report by Reuters on August 7, officials from the Indian Ministry of New Energy and Renewable Sources revealed that India is developing a 'Production Linked Incentive' (PLI) for polysilicon production, aiming to encourage companies to build related capacity domestically.
India's Ministry of New Energy Secretary Santosh Kumar Sarangi stated at an event organized by the Indian Industry Federation in New Delhi that the plan will further extend India's support policies for manufacturing, covering the upstream segments of the solar energy industry chain.
Currently, India relies almost entirely on imports of polysilicon from China.
Polysilicon is an important raw material for manufacturing solar photovoltaic components, and it is also used in the semiconductor industry. In many segments of the photovoltaic industry, including polysilicon, silicon wafers, and batteries, Chinese companies have long held a dominant position.
India's New Delhi promotes new energy; solar panels installed at Amuqran River temporary settlement. IC Photo
To reduce dependence on imported equipment and materials, India has been promoting domestic photovoltaic manufacturing in recent years.
Previously, India has provided manufacturing incentives totaling about 240 billion rupees (approximately 2.52 billion US dollars) for the production of solar cells and components.
Sarangi revealed that the new polysilicon incentive program could cover more than 10 gigawatts of capacity, but the specific amount of subsidies has not been announced yet. India hopes to establish a complete solar manufacturing system that includes components, batteries, silicon wafers, silicon ingots, and polysilicon.
Currently, India has established a manufacturing capacity for solar components of over 200 gigawatts and a production capacity for solar cells of over 32 gigawatts.
Saranji said that in the next year or so, India will also add approximately 100 GW of battery production capacity, and plans to achieve a production capacity of at least 80 GW of silicon wafers by June 2028.
India aims to achieve 500 gigawatts of non-fossil fuel power generation by 2030. The Indian government believes that strengthening the independence of the photovoltaic industry chain not only contributes to energy transformation but also enhances local manufacturing competitiveness.
However, India's efforts to localize the solar energy industry are facing real challenges.
Due to a shortage of solar cell supply in the domestic market, many photovoltaic component companies in India have been forced to suspend production or reduce output. Some companies have had to wait for domestic solar cells for as long as 8 months. This has resulted in the cost of solar panels using domestic solar cells being almost twice that of panels using Chinese solar cells. Industry insiders warn that this issue could hinder India's clean energy goals by 2030.
