1. What is The Approved Models and Manufacturers of Solar Photovoltaic Modules Order?
This is an executive order by the Ministry of New and Renewable Energy (MNRE) in India, effective from April 1, 2019. It mandates solar module manufacturers to undergo voluntary inspection of their facilities by the National Institute of Solar Energy to be listed as ‘approved’ manufacturers. This measure aims to ensure quality and reliability in the domestic solar manufacturing industry.
2. Why was this order introduced?
The order was introduced to address India's heavy reliance on imported solar modules, especially from China, and to promote the local manufacturing of high-quality solar panels. It also aims to protect the domestic solar industry from the influx of low-quality imports and to encourage the production of solar modules within the country.
3. How does being on the approved list benefit manufacturers?
Manufacturers on the approved list are eligible to participate in government tenders for flagship solar energy programs, like the PM Surya Ghar Muft Bijli Yojana and the PM KUSUM scheme, which involve substantial subsidies and incentives. It also makes them eligible for the Production Linked Incentive Scheme, which offers financial incentives to boost domestic manufacturing of solar panels.
4. Will the new rules reduce India's reliance on imported solar modules?
The rules are designed to stimulate domestic production of solar modules, thereby reducing India's reliance on imports. By ensuring that only certified manufacturers can supply to major government projects, it encourages local manufacturing and could lead to a reduction in imports over time.
5. How does this order impact India’s solar energy targets?
By promoting domestic manufacturing, the order supports India’s ambitious solar energy targets, including sourcing 280 GW from solar power by 2030. Increased local production is crucial for meeting these targets by ensuring a steady supply of solar panels and components.
6. Are there any concerns or criticisms regarding this order?
One concern is whether India's existing manufacturing capacity can meet the surge in demand driven by government projects and incentives. Additionally, there’s uncertainty about the global solar market dynamics, especially with potential changes in trade policies affecting imports and exports of solar components.
7. What future developments are expected as a result of this order?
The government anticipates a significant rise in domestic manufacturing capacity, starting this year. This growth is expected to be supported by the increased list of certified manufacturers and the continued incentivization of local production through government schemes and projects.
8. Can foreign companies participate in India's solar market under these new rules?
Foreign companies can participate if they establish manufacturing facilities in India and pass the inspection to be listed as approved manufacturers. This promotes foreign investment in India’s solar sector while ensuring technology transfer and quality production.
These FAQs aim to clarify the intentions, benefits, and potential challenges of the new solar power rules introduced by the MNRE, underscoring India's commitment to enhancing its solar manufacturing capacity and achieving its renewable energy goals.
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