In Short : The Indian government has tightened disclosure norms for domestic solar manufacturers. These new regulations aim to enhance transparency, ensure quality standards, and promote accountability in the solar manufacturing sector, thereby boosting the credibility and growth of the renewable energy industry in India.
In Detail : The government has ordered them to upload details of their annual imports and exports, as well as the location of their manufacturing facilities on two online portals
In a move to tighten scrutiny of domestic Indian solar cell and module-manufacturing companies, the Centre has ordered them, via a notification on Wednesday (August 7) to upload details of their annual imports and exports, as well as the location of their manufacturing facilities on two online portals.
Through this approach, companies are self-certifying themselves as users and makers of indigenous solar cell components though they will be appraised by the National Institute of Solar Energy, an autonomous body of the Ministry of New and Renewable Energy (MNRE).
Earlier this year, the government has announced a ₹75,000 crore programme, called the PM Surya Ghat Muft Bijli Yojna, to provide 300 units of free solar electricity to one crore households. A condition for availing benefits under the scheme, however, is that the components used are from Indian solar manufacturers. Other clean energy schemes of the government also mandate the use of India-made components. Currently, a significant chunk of India’s solar installation use imported, mostly Chinese, component. India expects to add at least 200 GW of solar energy by 2030. Currently it is at about 85 GW.
The notification is part of an order that came into effect in April this year, called the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019, called the ALMM.
Legitimate manufacturer
This order was first issued by the MNRE in 2019 and requires makers of solar modules to voluntarily submit to an inspection of their manufacturing facilities by the National Institute of Solar Energy, a Ministry-affiliated body. Being on the list as an ‘approved’ manufacturing facility certifies a company as a legitimate manufacturer of solar panels and not a mere importer or assembler.
“All the existing ALMM enlisted manufacturers shall feed-in data… in respect of their solar pv (photovoltaic) manufacturing facilities from April 2023 onwards, within four weeks from the date of issuance of this order… failing which, manufacturers who have not fed the data in the aforesaid portal, are liable to be de-listed from ALMM,” the notification reads. There are two portals maintained by the government ministries where this data can be uploaded.
“The amendments also focus on verifying Domestic Content Requirement [DCR] compliance through a newly established digital portal. The DCR policy, which is essential for promoting local manufacturing, has faced enforcement challenges due to the rapid expansion of the solar industry,” said Gaurav Upadhyay, Energy Finance Specialist, India Sustainable Finance, in a statement. “The new portal will streamline and enhance transparency in the DCR verification process, ensuring that manufacturers meet these critical domestic content standards.”
