The Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019, is an executive order that the Ministry of New and Renewable Energy (MNRE) implemented on April 1st, 2019, to provide incentives to the solar module manufacturing business in India.
What is the executive order?
Initially issued by the MNRE in 2019, this order mandates that manufacturers of solar modules willingly allow the National Institute of Solar Energy, an organisation connected to the Ministry, to inspect their manufacturing facilities. A company is deemed a genuine manufacturer of solar panels rather than just an importer or assembler if it is listed as an “approved” production facility.
Several solar panels connected make up a module. Solar cells are arranged to form solar panels. Even though they are among the world’s leading manufacturers and have pledged to quadruple the amount of solar power installed by 2030, local production of these cells and modules is far less than demand.
Why is India reliant on imports?
The decline in diplomatic ties between the two countries contributed to the compilation of a list aimed at restricting imports, particularly from China, which controls nearly 80% of the world supply.
India has big aspirations to source around half of its electricity needs, or 500 GW, from non-fossil fuel sources by 2030. This would entail adding at least 40 GW of solar capacity yearly until 2030, or 280 GW or more of solar power by that year. Although the government claims COVID-19 altered this trajectory, it has hardly crossed 13 GW in the last five years. The challenge lies in achieving the targets requiring far more solar panels and component cells than the country’s local industry can produce.
Why to pay to be on the voluntary list?
Being eligible to bid on government-issued contracts for its premier solar energy initiatives is the main benefit of being on the list. This comprises the PM Surya Ghar Muft Bijli Yojana, which was recently announced, among others. A subsidy of approximately ₹75,000 crore is expected to be provided under the project to build rooftop solar systems for roughly one crore households nationwide. But the Approved Models and firms (AMM) list would only accept certifications from domestic firms.
Rural electrification and solar pumpsets are the goals of another program known as PM KUSUM. Producers must be approved as legitimate local manufacturers to supply components under this program. A ₹24,000 crore government program known as the PLI Scheme is also in place to encourage home production of solar panels and their parts. One must be an authentic local manufacturer to qualify for this program.
Incentives to produce solar modules valued at 48 GW have been extended to 14 significant businesses. Plants and facilities put into service before March 2024, however, are exempt from these limitations as they solely pertain to new developments.
Can India manufacture adequately?
The demand-supply imbalance is predicted to continue, with China accounting for about half of India’s imports of solar modules. But starting this year, the administration says, there will be a big increase in industrial capacity.
There is currently no list of these makers of solar cells, suggesting that India is still a long way from reaching a comfortable level of self-reliance, even if the MNRE reports that the number of accredited manufacturers on the AMM list has increased to 82.
