India Plans To Raise Efficiency Requirement For Solar Modules

India plans to raise efficiency requirements for new solar modules made in the country, an update that would render a part of the country’s panel-making capacity redundant.

The renewable energy ministry has recommended increasing panels’ ability to convert sunlight into power, starting on Jan. 2027, according to a note on its website. Most modules used in large projects will be required to have an efficiency of 21% from 20% now, and standards for rooftop solar and off-grid are also being tightened. Norms for panels using cadmium telluride thin film technology are less stringent.

India’s rapid build-out of panel manufacturing has resulted in a supply glut, with exports slowing down due to high US tariffs and factory capacity outstripping local demand. The new norms would apply to both domestic and foreign makers, as part of the government’s efforts to strengthen the quality of local output.

“Switching to more efficient cells isn’t going to be a problem for many; the government is giving ample time for that transition,” Rohit Gadre, a Mumbai-based analyst at BloombergNEF.

“The challenge would be to maintain the price points they’re offering now,” which could lead some out of business, he added. Industry executives estimate that as much as 40% of India’s panel manufacturing uses obsolete technology.