India mandates Indian-made solar cells for projects effective June 1
From June 1, domestic, commercial and industrial solar projects—especially net-metering and open access projects commissioned after that date—must use only Indian-made solar cells.
The government hopes this move will cut down on imports and give a boost to local manufacturers.
There are just a few exceptions for projects that have already made serious progress, like installing modules or securing land.
Indian module costs threaten small firms
Right now, India can make plenty of solar panels (200 GW per year), but most of the actual cells come from abroad since domestic cell production is just 30 GW.
Smaller companies could struggle because Indian-made modules can cost up to 120% more than imported ones, and only bigger, integrated players are better positioned because they can produce their own cells.
Industry leaders warn that unless cell production ramps up fast, we might see fewer small players in the market as costs rise and competition tightens.