India’s solar PV market on the rise, boosting exports and manufacturing.

By Oliver Townsend Jun 26, 2024
India's Solar PV Market Ascends: Boosting Exports and Domestic Manufacturing Through Strategic Initiatives.pngOrginal image from:

India has made significant strides in the global solar photovoltaic (PV) market, leveraging its abundant sunlight and commitment to renewable energy. The country’s export growth in the solar sector has been boosted by specific initiatives aimed at fostering domestic manufacturing and increasing exports. This article explores how India is ascending in the solar PV market through strategic initiatives that are driving both exports and domestic manufacturing.

India’s Harmonized System of Nomenclature Codes

The Harmonized System of Nomenclature (HSN) codes, particularly 85414200 and 85414300, play a crucial role in classifying and facilitating international trade in photovoltaic cells and modules. HSN code 85414200 covers photovoltaic cells not assembled into modules, while code 85414300 includes assembled cells or modules. India’s solar exports have seen a significant boost, especially in the US market, with more panels being exported than ever before.

Government Interventions for Solar Manufacturing

Despite robust solar module manufacturing capabilities, India faces a disparity in solar cell manufacturing capacity. To address this imbalance, the government introduced the Approved List of Models and Manufacturers (ALMM) to support domestic manufacturers and enhance export opportunities. The ALMM notification, implemented in April 2024, aims to stimulate demand for domestically manufactured solar panels and prioritize them for government projects and incentives.

Impact of ALMM on Solar Exports

Following the implementation of ALMM, solar module exports surged to ₹1,62,182.64 lakh in April 2024. This initiative incentivizes domestic manufacturers to scale up production, aligning with India’s renewable energy goals and fostering a self-reliant solar industry. In the first four months of 2024, India’s total solar PV exports exceeded ₹7,15,707.91 lakh, with solar modules accounting for a substantial portion of the exports.

Challenges and Opportunities for Solar Manufacturers

While the ALMM notification has encouraged domestic manufacturing, concerns about competitive pricing have been raised by solar project developers. Some argue that export restrictions could help maintain competitiveness in the domestic market. However, the focus on domestic manufacturing presents an opportunity for Indian manufacturers to expand operations, meet rising demand, and export competitively priced products, positioning India favorably in the global solar energy market.

India’s Role in the Global Solar Energy Transition

India’s emphasis on solar module manufacturing and sustainable energy aligns with global decarbonization efforts, driving demand for solar solutions worldwide. With advancements in photovoltaic technology, supportive government policies, and increasing global demand for renewable energy, India is poised to emerge as a key player in the global solar market, contributing to sustainable development and economic growth.

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