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Alpex Solar To Build 1.2 GW Module Plant In Uttar Pradesh Photograph: (Archive)
The Ministry of New and Renewable Energy (MNRE) has not released any funds under its ₹24,000 crore Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules as of February 28, 2026, Union Minister Pralhad Joshi informed Parliament.
In a written reply to the Lok Sabha, Joshi said the scheme’s disbursement structure is linked to project commissioning timelines, with incentives payable only after one year of successful operations. As none of the awarded projects have yet completed this post-commissioning period, no payouts have been made so far.
The government has issued letters of award for a total of 48,337 MW of solar PV manufacturing capacity under the scheme, covering both fully and partially integrated facilities.
India has made progress in scaling up domestic solar manufacturing, with approximately 30 GW of module capacity, 10.5 GW of cell capacity, and 2 GW of ingot-wafer capacity already established. This includes around 3.4 GW of fully integrated thin-film module capacity.
Of the total awarded capacity, about 4 GW of integrated solar cell and module manufacturing was declared commissioned in October 2025, marking the initial phase of project execution under the scheme.
Despite policy support, the expansion of upstream manufacturing—particularly polysilicon and wafer production—has been slower, the minister noted.
He attributed this to the technical complexity of setting up such facilities and the lack of prior domestic experience in these segments. The global supply chain for upstream solar components also remains concentrated in a handful of countries, while India’s domestic ecosystem is still at an early stage of development.
Import dependence on raw materials, specialised equipment, and technical know-how continues to pose challenges for local manufacturing, particularly in upstream segments of the solar value chain.
The PLI scheme has been structured to incentivise vertically integrated manufacturing across polysilicon, wafers, cells, and modules, with higher incentives offered for deeper integration.
To support the broader ecosystem, the government has introduced measures to promote domestic production of ancillary inputs such as solar glass, aluminium frames, encapsulants, and tinned copper interconnects. These include basic customs duties on finished products, duty exemptions on select inputs, and anti-dumping measures.
Additionally, MNRE has rolled out capacity-building and skill development initiatives aimed at strengthening the domestic workforce and reducing long-term reliance on imports.
The first tranche of PLI disbursements is expected only after commissioned projects complete their one-year operational milestone, potentially pushing payouts into late 2026 or beyond.
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