Incentivising manufacturing of solar PV panels and equipment

The Government has taken steps to incentivize domestic manufacturing of solar PV panels and equipment and make domestic solar manufacturers globally competitive.

  • Modified Special Incentive Package Scheme (M-SIPS) Scheme of Ministry of Electronics & Information Technology: The scheme mainly provides subsidy for capital expenditure – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The Scheme was open to receive applications till 31st December, 2018. The Scheme inter-alia covers solar PV cells, solar PV modules, EVA, backsheet and solar glass.

  • Preference to ‘Make in India’ in Public Procurement in Renewable Energy Sector: Through implementation of ‘Public Procurement (Preference to Make in India) Order’, procurement and use of domestically manufactured solar PV modules and domestically manufactured solar inverters has been mandated for Govt/ Govt. entities.

  • Domestic Content Requirement: Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM and Grid-connected Rooftop Solar Programme Phase- II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.

  • Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has announced imposition of Basic Customs Duty on import of solar PV cells and modules

  • Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules

  • Discontinuation of Customs Duty Concessions: MNRE has discontinued issuance of Customs Duty Concession Certificates for import of material /equipment for initial setting up of solar PV power projects.
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