- Government plans PLI scheme to boost domestic polysilicon production for solar supply chain
- Polysilicon is a key raw material, currently fully imported for solar photovoltaic modules
- Existing PLI covers upstream and downstream solar segments, but upstream uptake is low
The government is working on a production-linked incentive (PLI) scheme aimed at polysilicon manufacturing, as part of a broader push to strengthen India's domestic solar supply chain and cut reliance on imports.
Polysilicon, a core raw material used in solar photovoltaic modules, is currently sourced entirely from abroad.
Speaking at the seventh Confederation of Indian Industry (CII) International Energy Conference and Exhibition, Ministry of New and Renewable Energy (MNRE) Secretary Santosh Kumar Sarangi said the proposed scheme was designed to give a push to domestic polysilicon production within the country, The Indian Express reported.
Where Polysilicon Fits In The Chain
Polysilicon sits at the top of the solar manufacturing chain, it is processed into ingots, which are then cut into wafers, used to make solar cells that are eventually assembled into finished panels.
India's existing PLI scheme for solar PV modules spans both ends of this chain, covering ingots, wafers and polysilicon upstream, and cells and modules downstream, but uptake in the upstream segments has lagged, the newspaper noted.
ALSO READ: US Solar Stocks, ETFs Soar As Trump Brings Polysilicon Under China Tariffs
Renewable Power Nearing Nuclear-Level Tariffs
On power pricing, Sarangi pointed to a recently concluded round-the-clock renewable energy (RE-RTC) tender by Solar Energy Corporation of India Limited (SECI), which discovered a tariff of Rs 5.25 per unit for supply assuring 90% availability, with only half sourced from solar during daytime hours.
"If you look at the profile of this RE-RTC bid, it almost matches the nuclear power," he said.
He added that cheaper renewable power has helped flatten average procurement costs for discoms over the past three years, reversing an earlier trend of rapid increases. A mix of solar with wind or battery storage could push average power procurement costs down further, from around Rs 5.20 to Rs 4.85 per unit, Sarangi said.
ALSO READ: Cabinet Okays 5,000-MW Floating Solar Power Plants With Rs 5,070-Crore Outlay
Cell Capacity To Triple
Sarangi further said India's solar cell manufacturing capacity, currently at about 32 GW, is expected to more than triple to 100 GW within a year.
This comes even as the country's module manufacturing capacity already stands at roughly 213 GW annually, underlining a persistent gap in cell production.
He added that ingot and wafer capacity is targeted to reach 80 GW by June 2028.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.