Two-Year Extension Granted for Solar PLI Scheme Commissioning

The Indian government has approved a two-year extension for commissioning projects under the Production-Linked Incentive (PLI) scheme for solar equipment manufacturing. This move comes in response to delays caused by supply chain disruptions, machinery import restrictions, and visa issues for technical experts.

This extension provides manufacturers additional time to establish facilities for ingot, wafer, and polysilicon production, strengthening India’s solar manufacturing value chain.

Currently, India has over 100 GW module capacity, 27 GW cell capacity, and about 2 GW ingot-wafer capacity. By FY28, these are projected to rise to 200 GW for modules and 100 GW for cells, well above the expected domestic demand of 50 GW annually

This extension is expected to:

1. Provide manufacturers time to build integrated facilities and reduce dependence on imports.
2. Allow smoother setup of upstream manufacturing capabilities.
3. Enhance India’s ability to meet its solar capacity targets and energy transition commitments.

However, despite the extension for commissioning, the end dates of the schemes remain unchanged, with:

• Phase 1 concluding in FY30, and
• Phase 2 concluding in FY32.

This means that the companies will need to accelerate production post-commissioning to fully benefit from the incentives.

The two-year extension for the Solar PLI scheme comes at a critical time for India’s renewable energy sector. While module and cell manufacturing capacities have grown rapidly, the next challenge lies in scaling up polysilicon, wafer production, and energy storage solutions.

By addressing these gaps, India can move closer to achieving self-reliance in solar manufacturing and building a resilient, globally competitive renewable energy ecosystem.