New Delhi: The government is planning to raise the quality norms and standards for solar modules and cells to prevent cheap and poorly made Chinese imports from hitting the market and to ensure that only high-quality modules are used for government-backed solar projects. Has been
Most Indian-made solar modules are of substandard quality that do not meet the efficiency criteria of each module converting 21% of solar energy into electricity – a key to India’s goal of reaching 500 GW of renewable energy capacity by 2030 step.
The move includes tightening of norms under the Approved List of Module Manufacturers (ALMM) launched in 2019 to ensure quality compliance by manufacturers. The firms on the list can source equipment for government-backed schemes and projects which in turn supply electricity to power distribution companies. Manufacturers and solar modules are approved by the Bureau of Indian Standards (BIS) and the Ministry of New and Renewable Energy. The list was also aimed at reducing import dependency for solar modules.
In March, the ministry deferred the implementation of ALMM for government-backed projects to April 2024 due to module shortages and prospects of a hike in solar power tariffs.
Union Minister for New and Renewable Energy Raj Kumar Singh said in an interview that the extension will help projects that have been delayed due to the COVID-19 pandemic and shortage of modules. “You will see projects after these extensions are over,” he said.
Noting the absence of sufficient module capacity with required efficiency, the minister said: “Out of 22 GW, around 13 GW is of low efficiency.
“Grid-scale efficiency of 21% and above is only 9 GW. To make a module of 21% efficiency, you need cells of 22% and 23% efficiency, for which manufacturing is only 1.5 GW. This is a bottleneck, as the rest of the cells have to be imported. And the projects under construction are 52 GW.” According to ALMM, the total capacity to manufacture solar photovoltaic modules in the country is about 22.4 GW per annum.
He also stressed the need to keep the cost of renewable energy low as India plans to become globally competitive in green hydrogen produced with renewable energy.
Describing ALMM as a quality control mechanism rather than a non-tariff barrier, Singh, who also holds the portfolio of power minister, said: “We are planning to bring changes in the ALMM scheme. A quality control mechanism should ensure that out-of-date products and techniques are kept out. Outdated technology will not be allowed under ALMM. We will specify that the minimum efficiency level will not be permitted after one year (when ALMM comes into effect).
The proposed changes are currently being examined and the norms are likely to be announced in about six weeks, he said, adding, “The old technology and modules will not find a place in the ALMM.”
There are currently a total of 91 module manufacturers on the list.
On March 9, 2021, the Center announced that from April 1, 2022, any import of solar PV modules would attract a basic customs duty (BCD) of 40% and imports of solar PV cells would attract a lower import BCD of 25%. Will do from China.
The government has also brought two installments of the production linked incentive scheme. In the Union Budget for 2022-23, the Center announced an additional allocation of 19,500 crore under the Solar PLI scheme for manufacturing high efficiency modules with priority to fully integrated manufacturing units from polysilicon to solar PV modules. The allotment was done under the first installment 4,500 crores.
According to the government, a total of 7.4 GW of manufacturing capacity is expected to be commissioned by October 2024, while 16.8 GW capacity will be ready by April 2025. The remaining 15.4 GW capacity will be commissioned by April 2026 under the incentive scheme.
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