Context:
India has emerged as one of the world’s fastest-growing solar energy markets, backed by declining solar tariffs, rising demand for clean energy, and ambitious national renewable targets. However, despite significant capacity expansion, India remains heavily dependent on imported solar modules and cells, particularly from China. The article emphasizes the need for India to evolve from being a major consumer of solar technology to a global supplier.
Key Highlights / Details:
- India generated 1,08,484 GWh of solar energy in 2022-23, surpassing Japan and becoming the third-largest producer of solar power after China and the U.S.
- India’s solar module manufacturing capacity grew from 2 GW (2014) to 10 GW (2022), expected to reach 17 GW by 2024.
- However, domestic cell manufacturing capacity is only 4 GW, versus projected requirement of ~85 GW annually by 2030.
- India plans to meet 50% of energy needs from non-fossil fuel sources by 2030, implying 280 GW from solar.
- 70–80% of PV modules are currently imported from China, raising concerns over supply security and trade deficits.
- U.S. and European firms are exploring “China+1” sourcing strategies, creating a market opportunity for India.
- Government initiatives like PM-KUSUM, PLI Scheme for Solar Manufacturing, and Solar Rooftop Subsidy under PM Surya Ghar Yojana are boosting domestic demand.
- African and developing countries lack affordable solar modules, presenting a strategic export opportunity for India.
Relevant Prelims Points:
- Solar cell vs. solar module difference
- PM-KUSUM Scheme – Components A, B, and C
- Production Linked Incentive (PLI) Scheme for Solar PV
- International Solar Alliance (ISA) – headquartered in Gurugram
- Solar Park Scheme, Grid-connected Rooftop Programme
Relevant Mains Points:
- Energy security and import dependency
- Technology self-reliance under Atmanirbhar Bharat
- Strategic trade diplomacy through renewable energy exports
- Green transition for inclusive rural development
- Supply-chain diversification in clean energy