Production Linked Incentive (PLI) Scheme
Production Linked Incentive (PLI) Scheme: National Programme on High Efficiency Solar PV Modules
Overview
Ministry of New and Renewable Energy, Government of India is implementing the Production Linked Incentive (PLI) Scheme for National Programme on High Efficiency Solar PV Modules, for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules with outlay of Rs. 24,000 crore. Solar PV manufacturers are selected through a transparent selection process. This Scheme has provision for Production Linked Incentive (PLI) to the selected solar PV module manufacturers for five years post commissioning, on manufacture and sale of High Efficiency Solar PV modules.
Aims and Objectives
The scheme aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India and thus reduce import dependence in the area of Renewable Energy. The objectives of the scheme include the following:
- To build up solar PV manufacturing capacity of high efficiency modules.
- To bring cutting-edge technology to India for manufacturing high efficiency modules. The scheme will be technology agnostic in that it will allow all technologies. However, technologies which yield better module performance will be incentivized.
- To promote setting up of integrated plants for better quality control and competitiveness.
- To develop an ecosystem for sourcing of local material in solar manufacturing.
- Employment generation and technological self-sufficiency.
Challenges for Customers:
- Cost of Ownership: Rising costs and GST rates have impacted the residential rooftop segment, slowing down installations.
- DISCOM Ecosystem: The shift to solar faces challenges in the existing DISCOM ecosystem, impacting cost competitiveness.
Solar Companies' Contribution:
- Research & Development: Solar companies are investing in R&D for more efficient solar ecosystems, such as shark bifacial panels.
- Energy Storage Trends: Trends in energy storage, like lithium batteries, are gaining popularity, addressing high energy consumption during specific hours.
- Loom Solar’s Initiative: Loom Solar, a Faridabad-based start-up, introduces a novel business model, “The Solar Entrepreneur,” encouraging new entrepreneurs to enter the solar market through a franchise system.
Government has taken several steps for promotion of solar energy in the country. These include:
- Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
- Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30,
- Notification of standards for deployment of solar photovoltaic system/devices,
- Setting up of Project Development Cell for attracting and facilitating investments,
- Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
- Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
- Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
- Notification of “The electricity (Late Payment Surcharge and related matters) Rules 2002 (LPS rules).
- Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy power including Solar power through exchanges.
