India’s Swadeshi Solar Cells Mission: Establishing a Self-Sufficient Domestic Solar Value Chain by 2028

Introduction

The Honourable Union Minister for New and Renewable Energy, Pralhad Joshi, has proclaimed a definitive target for Indian solar policy: by 2028, the country will attain full domestic capability in solar cell production, extending the domestic value chain to wafers and ingots under the overarching Swadeshi framework. This endeavour seeks to curtail foreign procurement in photovoltaic technologies while reinforcing India’s stature as a preeminent hub for solar manufacturing on the world stage.

Key Highlights

Current Achievements

India’s installed non-fossil electric generation capacity has surpassed 251.5 GW.

A domestic 100 GW solar module fabrication capacity has been established, accredited under the ALMM (Approved List of Models and Manufacturers) regime.

Investments of ₹50,000 crore have been mobilised, creating more than 12,600 permanent employment opportunities.

Under the Production-Linked Incentive (PLI) programme, installations have delivered 18.5 GW module capacity, 9.7 GW cell capacity, and 2.2 GW ingot-wafer capacity.

Future Targets (2028 Vision)

Achieve complete self-reliance in solar cell fabrication, with capacity established to meet export standards.

Realise domestic production of ingots and wafers with competitive quality and cost.

Expand the ALMM framework to incorporate solar cells, ingots, and polysilicon modules.

Develop a comprehensive Swadeshi solar value chain, minimising import dependency.

Understanding the Solar Value Chain

The photovoltaic manufacturing hierarchy encompasses several interrelated processes:

• Polysilicon Production: Extraction, high-purity conversion, and dopant removal.
• Ingot Manufacturing: Thermal Siemens or modified casting of ultra-pure polysilicon.
• Wafer Production: Diamond-wire or multi-wire sawing of crystalline ingots into homogeneous thin slices.
• Solar Cell Manufacturing: Texturing, diffusion, passivation, and metallisation of wafers into high-efficiency cells.
• Module Assembly: Lamination, framing, and testing of cells into rugged, high-reliability solar panels.
• India has attained substantial capacity in module assembly, yet it continues to import the bulk of cells, wafers, and ingots, with a pronounced reliance on the Chinese supply chain.

Government Initiatives and Policy Framework

Approved List of Models and Manufacturers (ALMM)

The ALMM directive was instituted in 2021 as a non-tariff instrument designed to nurture indigenous solar manufacturing capacity. Upon its initial issuance in March 2021, India boasted a certified capacity of approximately 8.2 GW supported by 21 registered manufacturers; this figure has since expanded to in excess of 100 GW of capacity. The regime not only establishes stringent quality benchmarks but also insulates national producers from predatory pricing and subsidised imports.

Production Linked Incentive (PLI) Scheme

The PLI mechanism extends financial inducements to a predetermined cohort of solar photovoltaic (PV) cell manufacturers for a period of five years following plant commissioning, with an emphasis on high-efficiency technology. The selection of beneficiaries is conducted through a transparent, merit-based procedure. The Government has earmarked an aggregate manufacturing capacity of 39,600 MW for solar PV modules under PLI Tranche-II, reinforcing the programme’s scale and ambition.

Strategic Importance

Energy Security

The framework diminishes systemic vulnerabilities by curtailing reliance on foreign sources, primarily China. By establishing resilient domestic supply chains, the programme underpins India’s overarching target of 500 GW of renewable energy capacity by 2030.

Economic Benefits

The initiative is poised to generate significant employment in the manufacturing domain, support technology diffusion, cultivate a skilled workforce, and create a viable export pipeline. In doing so, it aligns fully with the broader Make in India programme.

Environmental Impact

The acceleration of indigenous solar capacity deployment advances India’s objective of achieving net-zero emissions by 2070, concomitant with a marked reduction in the carbon intensity of the energy sector.

Challenges and Concerns

Technical Challenges

• The sector confronts a technology gap, as modern PV cell fabrication necessitates sophisticated process lines, advanced materials, and proprietary know-how, which require sustained investment in research and technology acquisition.
• Raw Material Dependence: Persistent reliance on imported polysilicon remains a limiting factor.
• Quality Competition: Domestic producers must elevate manufacturing to internationally recognized quality benchmarks.
• Scale Economics: Attaining cost parity with incumbent global leaders necessitates rapid scaling of production.

Investment Requirements

• Uphill: Upfront capital is required for large-scale upstream polysilicon reactors and wafer fabrication.
• Balanced: Commensurate funds must also underwrite research to localize technology and design.
• Bottom-line: New industrial ecosystems—power, water, land—must be engineered concurrently.

Global Competition

• Chinese entities control roughly three-fourths of the global polysilicon and wafer market, creating a structural bias.
• Cost differential: Persistent underpricing by horizontal and vertical mainland conglomerates pressures local margins.
• Unstable: International safeguard measures and export quotas further globalize uncertainty.

UPSC Relevance

Prelims Perspective

Capacity goal: 2030 agenda envisages 500 GW of solar, a 20-fold expansion from 2020 levels.

• Policy toolbox: Production Linked Incentive schemes and Approved List of Module Manufacturers guide fiscal and regulatory discourse.
• Diplomatic: Bilateral solar technology accords chart technology-security ecosystems and affect import tariffs.
• Geophysical: Regions with GHI exceeding 1800 kWh/m² enable a renewable energy hotspot, yet grid and storage infrastructure deficits remain.

Mains Significance

GS Paper-2

Governance: Policy architecture to expand solar and transform manufacturing landscape constitutes a shadow budget for the economy.

Make in India: Market-access tariffs and public procurement have catalysed new domestic cell assets in the last three fiscal years.

PPP models: Empirical evidence points to effective co-financing, risk-sharing, and technology diffusion.

GS Paper-3

Economy: New industrial policies target a manufacturing output of $20 billion and exhibit macroeconomic benefits, including import substitution of silicon.

Environment: Solar arrays estimated to offset 900 million tonnes of CO2 by 2030, synchronising economic values with ecological prudence.

Climate: Decarbonising the upstreamsector helps stabilize emerging-market credit-risk profiles.

Technology: IP-creation ecosystems accelerate home-grown R&D and shift the nation from process innovation to manufacturable designs.

Essay Topics

“(Ministerial mnemonic) ATMAN at AMM: Autonomy, to scale through Indigenous technology and New markets, is paramount.

“Navigating the energy trilemma—equitable access, economic viability and environmental integrity—constitutes the central dilemma for emerging-market energy models.”

Recent Developments

Private Sector Participation

Madhya Pradesh: Internal private equity has galvanised ₹4,000 crore for a twin-sault 5 GW TOPCon cell and 3 GW half cell solar park.

Phase 1, provisioning 2 GW, is slated for commissioning by 2026.

Policy Trajectory

• ALMM scope is being broadened to encompass both solar cells and upstream components.
• Renewable energy sector reforms continue to prioritize Ease of Doing Business.
• Single-window forums for swift project sanction are being further institutionalized.

Global Framework

International solar market indicators confirm

• a mounting trend toward supply-chain diversification
• a growing commitment to sustainable production practices
• a continuous ambition for solar-cell efficiency enhancements.

Geopolitical Analysis

• Reducing reliance on Chinese supply chains is rebalancing global supply dynamics.
• The reconfiguration simultaneously strengthens India’s renewable energy market position.
• The emergent landscape provides increased scope for South-South solar collaboration.

Preferred Route

Immediate Agenda 2024 – 2026

• scale cell production lines,
• tighten quality governance,
• intensify sector-relevant upskilling.

Intermediate Objectives 2026 – 2028

• build integrated wafer and ingot fabrication,
• cement alliances for advanced cell engineering,
• cultivate outbound market existence.

Enduring Directive, Post-2028

• advance pioneering solar research,
• embed circular economy practices in fabrication,
• secure acknowledged global precedence in sustainable solar supply chains.

Summation

India’s Swadeshi Solar Cells mission constitutes a systematic framework for energy reliability and making solar supply chains resilient. Its design embodies the imperatives of import substitution, job generation, and simultaneously positioning the nation as a renewable energy centre of excellence on the global landscape.

Achieving the identified objective by 2028 will demand aligned action among sustained governmental policy frameworks, strategic private sector capital deployment, and cutting-edge technological advancement. The deadline, while aggressive, is within reach aligned with the trajectory of India’s extant manufacturing ecosystem and the ongoing policy headwinds. Nonetheless, the consolidation of critical enablers— including the acquisition and effective assimilation of frontier technologies, the mobilization of appropriate long-term capital, and the navigation of intensifying international~competition— will remain decisive variables in the effort to transform the aspirational roadmap into a tangible industrial outcome.

Key Terms for UPSC Preparation

ALMM: Approved List of Models and Manufacturers, essential for certifying solar components.

PLI Scheme: Production Linked Incentive Scheme, mandates domestic production targets for solar technologies.

TOPCon Cells: Tunnel Oxide Passivated Contact solar cells, offer high efficiency for rooftop deployments.

Swadeshi: Indigenous self-reliance, aims to reduce dependence on imported solar equipment.

Value Chain: Comprehensive manufacturing cycle from raw silicone feedstock to solar modules.

Ingots: Cylindrical blocks of crystalline silicon produced from metallurgical-grade feedstock.

Wafers: Thin, uniform slices of silicon, serving as the substrate for solar cell fabrication.

Polysilicon: Ultra-pure silicon, produced to low impurity levels for high-cell efficiency.

Practice Questions

Prelims-style MCQs

1.Which ministry is the nodal agency for the Swadeshi Solar Cells initiative?

2.ALMM, when referenced in solar policy discourse, refers to which full form?

3.India targets 2030 as the year for full self-sufficiency in solar cell production; state true/false.

Mains Practice Questions

1.Examine how the Swadeshi Solar Cells programme enhances both energy autonomy and overall economic uplift. (10 marks)

2.Identify the impediments and the competitive advantages associated with establishing an entirely domestic solar value chain. (15 marks)

3.Assess the effectiveness of the PLI and ALMM frameworks and specify further interventions required for long-term sustainability. (15 marks)