Meeting 2030 target may push solar equipment import bill to about $30 billion per year: GTRI – EQ
In Short : According to GTRI, achieving India’s 2030 solar targets could increase the annual import bill for solar equipment to approximately $30 billion. This surge is attributed to the growing demand for solar energy infrastructure needed to meet ambitious renewable energy goals. The reliance on imports highlights the need for strengthening domestic manufacturing capabilities in the solar sector to reduce costs and enhance energy security.
In Detail : Global Trade Research Initiative (GTRI) in its report has said that the country’s target of installing 500 GW of renewable energy by 2030 may push solar equipment import bill to about $30 billion per year and increase dependence on Chinese goods.
It said developing a self-reliant solar manufacturing industry in India will require significant investment to create an integrated supply chain, especially in areas like polysilicon and wafer production. Without this, India may continue to face high import costs and struggle to meet its renewable energy goals.
GTRI said India installed 15 GW of solar capacity in 2023-24, raising the total to 90.8 GW by September, compared to just 2.8 GW in 2014. To meet the government’s target of installing 500 GW of renewable energy by 2030, India needs to significantly ramp up installations to 65-70 GW each year, with over 80 per cent of this target expected to come from solar power. This target seems ambitious, particularly given India’s reliance on imports, which could push solar import to $30 billion annually.
In 2023-24, India imported $7 billion worth of solar equipment, with China supplying 62.6 per cent. China controls 97 per cent of global polysilicon production and 80 per cent of solar module manufacturing, making it difficult for India or any country to compete due to lower prices from China.
The report said India’s solar manufacturing industry is in early stages, with most projects relying on imported ready-to-use modules. During the last fiscal year, ready-to-use solar modules’ imports reached $4.4 billion. The country also imported solar cells worth $1.9 billion and $1 billion worth of other essential parts such as inverters, and cables, junction boxes, transformers, and other electrical components needed for solar installations.
Local production is import-dependent and mainly focuses on the final two stages. 90 per cent of solar manufacturing in India involves assembling solar modules from imported cells with 15 per cent local value addition. It added that few Indian companies manufacture commercial scale solar cells from imported polysilicon or wafers that add 30-40 per cent value locally and no one produces solar cells from scratch-using silica sands.
