India’s Soaring Solar Industry: Illuminating the Path to Renewable Energy
Image Source: News18
Amidst global initiatives to curb climate change by pivoting away from fossil fuels, India’s solar energy sector is garnering international attention, poised to claim the title of the second-largest producer of solar modules by 2025, signaling a shift from China’s domination. While China presently holds an 80% global share in solar module supply, India’s ascension into this domain is showing promising early signs.
Furthermore, India’s burgeoning solar manufacturing sector is gearing predominantly towards meeting the demand in the United States, constituting nearly 93% of India’s solar PV exports. This rise in domestic manufacturing is coupled with a significant reduction in imports of solar modules from China, marking an 80% decline amounting to $2 billion in the initial half of 2023, as reported by think tank Ember.
In line with this trend, imports of solar cells, parts, and diodes from China recorded a 70% drop in the previous fiscal year, highlighting a strategic shift in India’s solar procurement. Projections indicate a substantial surge in India’s solar photovoltaic (PV) module manufacturing capacity, projected to exceed 60 GW by 2025 and potentially surpass 110 GW by 2026, catalyzed by governmental interventions.
Moreover, ongoing projects in various stages of implementation are poised to contribute to the rise in India’s PV module manufacturing capacity, with approximately 90 GW of PV cell and module capacity projects and around 68 GW of cell capacity under development.
Forecasts by the Institute for Energy Economics and Financial Analysis (IEEFA) suggest that India is set not only to achieve self-sufficiency in solar capacity but also establish a significant presence across various PV manufacturing facets by 2026.
India’s strides in solar capacity augmentation have translated into substantial employment growth, with grid-connected solar PV jobs surging by 47% in 2022, totaling over 200,000 positions, along with significant job creation in the off-grid solar segment.
The Indian government’s concerted efforts through initiatives like the imposition of tariffs on solar modules and cells, the Approved List of Models and Manufacturers (ALMM), and the production-linked incentive (PLI) scheme have significantly fueled domestic solar manufacturing and aimed at reducing import dependency.
However, challenges persist, including the need for greater adoption of rooftop solar systems and addressing cost barriers to boost demand for solar panels. Moreover, global developments such as the US’s Inflation Reduction Act and increased domestic renewable energy manufacturing may pose challenges to India’s solar exports, necessitating a quest for alternative markets.
India’s transition toward renewable energy, particularly solar power, has already showcased its impact on emission reduction, reflecting the country’s commitment to cleaner energy sources. The sector’s growth and contribution to emission reduction signal a promising trajectory for India’s renewable energy journey.
While India’s path to harnessing solar power has been illuminated by progressive policies, ongoing initiatives, and evident successes, continued efforts in technology advancement, cost reduction, and market diversification will be pivotal in sustaining this upward trajectory in the solar energy sector.
Team Profile
- News Writer
- Harshit Tokas is a Political Science and International Affairs Post-Graduate with a passion for understanding and analyzing complex political landscapes. Skilled in research, data analysis, and policy development. Eager to contribute his knowledge and insights to drive positive change.
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