Making India “Atmanirbhar” in Solar Sector

An analysis on the steps to be taken by the government as well as industry in making India “Atmanirbhar” in solar power sector.

India is betting on renewable energy to boost power generation and has set a target of installing 175 GW of renewable energy capacity by the year 2022, which includes 100 GW from solar. Further, in September last year, Prime Minister Narendra Modi had announced increasing the renewable energy target to 450 GW by 2030. Accordingly, the country has made remarkable progress in this area during the last few years.

Of late, Prime Minister has given a clarion call for an “Atmanirbhar Bharat” that is aimed at making Indian economy ‘self-reliant’ in the post-pandemic era. However, to meet the ambitious target of solar power generation as well as achieve self-reliance, India needs to bolster its domestic manufacturing. It is to be noted that, while India’s annual demand for solar cell is around 20 GW, its current average annual manufacturing capacity stands at only 3 GW.

While explaining the steps to be taken by the industry in making India “Atmanirbhar” in solar sector, Manoj Gupta, VP-Solar and Waste to Energy Business, Fortum India Pvt Ltd said, “Looking at the current growth of the solar industry and the government’s support towards energy transition it is evident that the solar sector can help India in achieving self-reliance. The industry has already initiated domestic manufacturing to avoid imports from foreign players and we are seeing employment creation in the solar power sector that can offer employment to all kinds of labours comprising skilled, semi-skilled, and unskilled in several activities like manufacturing of solar equipment, development of solar power plant, and installation and maintenance activities.”

Ravindra Prabhudesai, Managing Director, Pitambari Products Pvt. Ltd. – Pitambari Solar Care Division also believes that solar industry needs to start manufacturing of solar cells equivalent to the quality of rest of the world – majorly China. He said, “Focus should be on in-house only so that the dependency for raw materials will be reduced and we can become ‘Atmanirbhar’.”

According to Shivanand Nimbargi, MD & CEO, Ayana Renewable, following steps are required to get scale and become a leading supplier not just in India but to the rest of the world:
• Investment and focus in research and development – on new technology and on materials aimed at improving efficiency and reducing costs
• Policy aimed at giving capital support or subsidy to get investment
• Tax exemptions
• Complete value chain to be localised
• Clarity on levy of duties on components manufactured in SEZ Zones and sold within India.

Talking about the steps to be taken by the government in making India “Atmanirbhar” in solar sector, Amit Anant Arokar, Managing Director, ECE (India) Energies Pvt Ltd said, “Government should support cell manufacturing lines in India in order to lead the global race for renewable energy development. Solar cells are the essential commodity which is lagging drastically in India. If we could meet this gap, anyhow, Atmanirbhar Bharat Mission will be an easy walk for to us.”

Gupta adds, “The government is promoting domestic purchase of solar cells and modules which will, in turn, promote new businesses in India’s manufacturing sector.”

Prabhudesai also observes: “Banking sector can shift their focus on solar industry so that availability of loan for solar system will be easier for industry and it will help to promote the renewable energy across the India.”

Why domestic manufacturers should focus on quality?
Ensure quality supply and economical cost
Talking about the importance for domestic manufacturers to focus on quality while developing ‘import-substitute’ solar equipment, Gupta said, “It is imperative for domestic manufacturers to focus on quality of the solar equipment so that they can perform in long run for 25-30 years. It will also help to get the domestic and international funding for good quality project. It will also help not only to fulfil the domestic demand but also to compete in international markets. The push for strengthening domestic manufacturing is also coming from the government that is looking at import substitution and developing local capabilities at a large scale.”

He adds, “Till now, generators in the solar sector used to import more than 80 per cent of modules from China due to the huge price advantage and better-quality product compared to domestic manufacturing. To change this wave, it is essential to have quality supply and economical cost.”

Improve manufacturing efficiency
Solar equipment have to last for 25-35 years and their performance has to be in line with guaranteed parameters. This can be achieved only by ensuring quality materials and manufacturing and testing facilities of global standards. “In order to have full local capabilities, domestic manufacturers need to focus on automation or testing facilities and constantly enhance the products in line or ahead of other countries to ensuring global quality standards,” said Nimbargi.

Focus on R&D
In order to take Indian products and equipment to new heights, quality of domestic equipment and efficiency of power generating units are most critical wings for consideration. “Still we are not up to the mark as far as technology is concern,” observes Arokar. He suggests, “Research and development has to sharp their edges and improve its speed to meet set standards.”

Quality of raw materials
In Prabhudesai’s opinion, quality of raw material is most crucial factor. He said, “We commit generation and warranty of a solar system for 25 years to the customer. It all depends upon quality of raw materials as well as quality of installation and commissioning of EPC player. So, substitute for import materials will be sustainable only if we can make the best quality of raw materials and best quality of solar power projects.”

Focus should be on in-house only so that the dependency for raw materials will be reduced and we can become ‘Atmanirbhar’.
Ravindra Prabhudesai, Managing Director, Pitambari Products Pvt. Ltd.

In order to have full local capabilities, domestic manufacturers need to focus on automation or testing facilities and constantly enhance the products…
Shivanand Nimbargi, MD & CEO, Ayana Renewable

Government should support cell manufacturing lines in India in order to lead the global race for renewable energy development.
Amit Anant Arokar, Managing Director, ECE (India) Energies Pvt Ltd

It is imperative for domestic manufacturers to focus on quality of the solar equipment so that they can perform in long run for 25-30 years.
Manoj Gupta, VP-Solar and Waste to Energy Business, Fortum India Pvt Ltd