In Short : Solar manufacturers are anticipating significant growth in the coming years, driven by increasing demand for renewable energy and government initiatives promoting solar power. As the world transitions towards cleaner energy sources, the solar industry is poised for rapid expansion, with manufacturers scaling up production to meet rising market needs and contributing to global sustainability goals.
In Detail : Solar panel manufacturers are also hoping for a policy change in European countries on the lines of the US which may open the European market for India.
In view of the target of installing one crore household rooftop solar panels under the PM-Surya Ghar Muft Bijli Yojana, manufacturers are bullish on the multifold growth in solar panel installations.
Furthermore, solar panel manufacturers are also hoping for a policy change in European countries on the lines of the US which may open the European market for India.
Vineet Mittal, Director, Navitas Solar, a leading solar panel manufacturer, said, “The government’s commitment towards renewable energy and the policies such as ALMM (Approved List of Model Manufacturers) and BCD (Basic Custom Duty of 40% on solar module imports) will help grow the consumption demand of domestically manufactured products. I am expecting an addition of around 35 GW to 40 GW of solar capacity per year.”
As per the government data released on India Brand Equity Foundation under the Ministry of Commerce & Industry, the total solar capacity installed in FY 24 was around 15 GW this far. In order to reach its target of 500 GW renewable energy capacity by 2030, India needs to add about 44 GW annually, requiring an investment of US$ 190-215 billion over seven years.
Mittal said that land acquisition and infrastructure development to establish an efficient transmission network are the major challenges that the industry and the government need to address. “India’s per capita power consumption is only around one third of the global average. Our power consumption is growing at around 10%-12% per annum resulting in an additional power demand of 20-25 GW annually. This increasing demand combined with the government initiatives may create a multi fold increase in the demand for solar installations.”
Vinay Thadani, Director & CEO, Grew Energy, one of the companies under Gujarat based Chiripal Group, told FE, “The installation speed of the solar panels is the main challenge that India needs to tackle. The 40% basic customs duty on panel imports is helping the manufacturers to bridge the price gap with Chinese competitors.”
Talking about the overseas business opportunities for Indian manufacturers, Thadani claimed, “As of now, it is not possible for Indian players to compete with Chinese manufacturers in markets like Europe and Middle East.” He said that the USA is the only market that is compatible for the Indian exporters due to the ban on Chinese imports.
He further said, “More and more nations are committing towards the growth of renewable energy which will increase the demand globally. The Indian industry is also looking keenly at the European market as they are looking to reduce their dependence on China. We are expecting that in order to find an alternative to China, European countries will also come up with similar policies as the US and India, being the third largest manufacturer, is a natural choice.”
Industry sources also said that the government’s policy support and the increased trust of the investors has improved the financing in the green energy sector in the last three years. “The investors are getting to know the future and importance of the renewable energy sector. They are confident about the sector and getting the funds is not a challenge anymore for the industry.”
According to industry sources, the USA has around 300-400 GW of solar manufacturing in the pipelines and many Indian manufacturers are exploring manufacturing opportunities in collaboration with local players in the US market. Waaree Energies is supposed to start their factory in the US by the end of this year while Navitas Solar, including other manufacturers are also exploring such manufacturing opportunities there.
It should be mentioned that India is the 3rd largest energy consuming country and stands 4th for total renewable power capacity additions. At COP26 India announced its plan to achieve the target of 500GW of non-fossil fuel-based energy by 2030. As of May 2024, India’s renewable energy capacity stands at 195.01 GW with solar power capacity of 85.47 GW, wind power of 46.65 GW, small hydro power of 5 GW and large hydro power of around 46 GW.
