FCC

Centre Mandates Use of India-Made Solar Cells from October

2025-07-31

In a significant policy shift to bridge the gap between India’s solar module and cell manufacturing capacities, the Ministry of New and Renewable Energy (MNRE) has mandated the use of India-made solar cells in renewable energy projects starting later this year, instead of June 2026 as previously planned.

The order, issued on 28 July, requires public sector undertakings including NTPC, NHPC, SJVN, and SECI to revise their tender documents accordingly. These PSUs, acting as renewable energy implementing agencies (REIAs), must now include this mandate in upcoming bids to align with India’s target of 500 GW of non-fossil energy capacity by 2030.

This requirement will come into effect 30 days after the MNRE publishes ‘List II’—the approved list of Indian manufacturers and models of solar cells—expected by next month. Consequently, tenders floated from October 2025 onward will need to comply. However, bids finalised within 30 days of the list's publication will be exempt.

No exemption will be granted for projects under key government schemes such as PM Surya Ghar Muft Bijli Yojana and PM KUSUM, which already adhere to domestic content requirement (DCR) norms mandating Indian-made solar components.

The Centre believes this measure will stimulate demand for Indian solar cells and reduce reliance on imports, particularly from China. Currently, India’s annual production capacity stands at 91 GW for solar photovoltaic (PV) modules but only 27 GW for cells. Notable domestic producers include Tata Power, Adani Green Energy, and Waaree Energies.

Meanwhile, implementation delays continue to hamper the Production Linked Incentive (PLI) scheme for solar PV module manufacturing. Of the 130.7 GW capacity awarded under PLI, only 25.5 GW has been commissioned to date. The scheme offers incentives over five years post commissioning. As of now, 17.5 GW of module and 6 GW of cell capacity have been developed under PLI.

The accelerated mandate is expected to strengthen India’s domestic manufacturing ecosystem and ensure long-term sustainability in the renewable energy supply chain.