Download Learnerz IAS app from the Play Store now! Download



Approved List of Models and Manufacturers of Solar Photovoltaic Modules UPSC NOTE

 What is the ALMM list?

  • This list consists of manufacturers who are eligible for use in Government Projects/Government assisted projects/ projects under Government schemes & programmes.

  • Including projects set up for sale of electricity to the Central and State Governments

  • This notification was “kept in abeyance” two years after it was issued, for the past financial year. 

  • While the government did not give an explicit reason for this, it has been reported that it stems from concerns and demands of renewable power producers who had secured sale contracts with the government before these rules were issued 

  • When solar modules and cells were overwhelmingly imported from China at highly competitive rates

  • India’s domestic renewables sector, at the time, was unlikely to meet the spike in demand for solar power production equipment at rates offered by Chinese manufacturers.

  • The government’s re-introduction of this rule has been premised on the estimation that following measures.

  • Such as the Production Linked Incentive (PLI) scheme, India’s domestic sector has boosted its production capacities and bettered price competitiveness to meet local demand. 

  • This is an import substitution effort, and not an attempt to restrict imports.

Does India rely on solar PV imports?

  • India is overwhelmingly import dependent to meet its demand for solar cells and modules — with China and Vietnam being the country’s major suppliers

  • According to a reply by the Minister for New and Renewable Energy in Parliament in February last year.

  • India imported about $11.17 billion worth solar cells and modules in the past five years

  • This is worth 0.4% of India’s total exports in the same period

  • And until January of 2023-24, data from the Ministry of Commerce’s Import-Export showed that China accounted for 53% of India’s solar cell imports.

  • Also 63% of solar PV modules. 

  • Ratings agency ICRA estimates that China commands more than 80% share of the manufacturing capacity across polysilicon, wafer, cell and modules

  • In comparison, the manufacturing capacity in India is relatively low and is largely restricted to the last manufacturing stage.

  • ICRA stated in its November 2023 report, adding that the PLI scheme is expected to change this, with integrated module units expected to come up in India over the next 2-3 years.

How have our policies responded?

  • To address this over dependence, India made three significant efforts over the past five years.

  • It began with the notification of the ALMM order in January 2019. 

  • But the issue attained centre stage in the wake of severe global supply chain disruptions during the COVID-19 pandemic. 

  • Finance Minister Nirmala Sitharaman proposed the ₹19,500 crore PLI scheme in the Union Budget of 2022-23

  • This was to scale domestic manufacturing of the entire solar supply chain — from polysilicon to solar modules. 

  • The government also introduced a steep 40% customs duty on PV modules and 25% on PV cells. 

  • These duties were halved as solar capacity additions slowed and as Reuters had reported.

  • The developers had quoted “aggressively low tariffs” to win power purchase contracts based

  • On imports of Chinese equipment that put cost pressure on about 30 GW capacity worth projects.

Why is China a leading exporter?

  • In a July 2022 report, the International Energy Agency noted that China was the most cost-competitive location to manufacture all components of the solar PV supply chains. 

  • This is mainly because of the lower cost of power supplied to the industry.

  • The agency observed, as electricity accounts for more than 40% of production costs for polysilicon and almost 20% for ingots and wafers. 

  • The IEA also observed that ‘Chinese government policies prioritised solar PV as a strategic sector, and growing domestic demand enabled economies of scale and supported continuous innovation throughout the supply chain.

What is the scope for solar in India?

  • The government’s ambitious target of 500 GW of installed capacity from non-fossil fuels by 2030 is the main driver to scale solar power in India.

  • India also accounts for the fastest rate of growth for demand of electricity through 2026 among major economies, according to the IEA. 

  • This is because of strong economic activity and expanding consumption of products to mitigate extreme weather

  • Solar power accounted for about one-third of all energy generated from renewables between April last year and February this year

  • The country has an estimated solar power potential of 748.99 GW

  • Hence, the potential of solar energy is not fully tapped, so far



Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,54,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,67,Govt Schemes,2,GST,1,History,2,Home,3,IAS Booklist,1,Important News,71,Indian Economy,46,Indian History,2,Indian Polity,56,International Organisation,12,International Relations,58,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,March 2024,238,May 2022,17,May 2024,191,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,September 2023,205,UPSC CSE,111,
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Approved List of Models and Manufacturers of Solar Photovoltaic Modules UPSC NOTE
Approved List of Models and Manufacturers of Solar Photovoltaic Modules UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content