According to reports, among various support measures under phase –II plan of National Solar Mission to expedite the solar power projects in the country, Indian government plans to provide stronger thrust on domestic solar equipment production and is considering incentive package for the manufacturing sector.
“Phase I of solar mission had relatively smaller capacity addition targets and bundling scheme and generation based incentive mechanism proved sufficient and successful for proliferation of solar power in India during initial stage of the Mission. However, phase II has aimed for significantly higher scale of targets and the ministry of new and renewable energy is contemplating all the possible options for implementation of the mission. Several measures like viability gap funding for large solar projects (range of 750 mw-1,000 mw) and pre-fixed tariff, among others are being proposed under phase II plan,” according to the draft policy document on National Solar Mission, phase II.
“During phase II, attention shall be given to solar manufacturing capacity building across the value chain covering silicon wafers, cells, modules, thin film modules, panels, balance of systems components such as inverters, power conditioning units, etc. Indigenous manufacturing of low temperature solar collectors is already available; however, manufacturing capacities for advanced solar collectors for low temperature and concentrating solar collectors and their components for medium and high temperature applications need to be built. An incentive package, similar to SIPS (special incentive package scheme), could be considered for setting up manufacturing plants for solar thermal systems/ devices and components,” it said.
With favourable regulatory and policy conditions, solar mission also envisages India becoming a solar manufacturing hub with a total capacity of 4-5 gw, to feed both a growing domestic industry as well as global markets. To ensure the development of domestic manufacturing, provision of domestic content requirement is introduced under the solar mission. However, there is no significant capacity Since solar power cost reduction potential is highly correlated with the advancement in solar technology, a progressive and focused research infrastructure development has been planned in phase II. MNRE has constituted Solar Energy Research Advisory Council (SERAC) to analyze the existing research infrastructure in solar sector and then to set up a framework, which would incubutilisation despite addition of manufacturing capacity. Currently, the country is reported to have built a total manufacturing capacity of close to 2,800 mw that includes production of solar modules, cells and ingots and wafers.