PLI Scheme for High Efficiency Solar PV Modules

The Production Linked Incentive Scheme for High Efficiency Solar PV Modules seeks to expand domestic manufacturing of efficient solar modules and reduce India’s dependence on imports. It supports a competitive, technologically advanced and increasingly integrated solar photovoltaic manufacturing ecosystem in India.

Core objectives

The scheme combines renewable-energy policy with manufacturing policy rather than merely subsidising the installation of solar power capacity.

• It aims to reduce import dependence in a strategically important renewable-energy supply chain.
• It promotes higher module efficiency, adoption of advanced technologies and globally competitive manufacturing.
• It encourages vertical integration, including domestic production of upstream inputs, cells and modules.
• It seeks greater local value addition, employment generation and development of an ancillary manufacturing ecosystem.

Incentive design

Implemented by the Ministry of New and Renewable Energy, the programme has a combined financial outlay of ₹24,000 crore across two tranches.

• Selected manufacturers receive incentives on the sale of eligible high-efficiency solar PV modules for five years after commissioning.
• The incentive varies with module performance, including efficiency and temperature coefficient, as well as local value addition.
• This design rewards actual production and technological quality instead of merely supporting the creation of manufacturing capacity.

Wider policy significance

By supporting scale, technology and domestic supply chains together, the scheme advances Atmanirbhar Bharat while facilitating India’s renewable-energy expansion.

• Domestic capacity can improve supply-chain resilience and reduce exposure to external disruptions.
• Competitive module manufacturing can support long-term energy security and the transition towards cleaner electricity.