• UGI USER
  • Apr 02, 2024
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SOLAR SURGE IN INDIA

Syllabus:

GS 3 : 

  • Science and Technology- Developments and their Applications.
  • Environmental Conservation

Focus:

India’s solar industry stands at a pivotal moment, with the government’s new policy initiatives aiming to boost domestic manufacturing while ensuring top-notch quality.

Source: Socialcops

Government’s New Policy Initiatives

  • Policy Overview: The government is introducing measures to reduce reliance on imported solar panels.
  • Compulsory Registration: The Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019 mandates inspections by the National Institute of Solar Energy.
  • Eligibility for Government Tenders: ‘Approved’ companies can participate in government tenders, including the PM solar rooftop scheme.
  • Regulation and Oversight: The policy seeks to standardize and regulate solar panel manufacturing in India.
  • Incentivizing Domestic Production: To reduce import dependence, the policy offers incentives to domestic manufacturers.
  • Transparency and Accountability: The new regulations aim to enhance transparency in the solar panel manufacturing sector.
About Approved Models and Manufacturers of Solar Photovoltaic Modules

·   Implemented on March 10, 2021, the MNRE enforces the “Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019” and its associated guidelines.

·   The order mandates the registration of Solar PV Cells and Modules manufacturers and their models post thorough inspection of their manufacturing units.

·   MNRE will maintain and update the Approved List of Models and Manufacturers (ALMM) Order, listing approved manufacturers and models of Solar PV Modules.

Key Highlights:

·   Registration is valid for 2 years with an option for renewal upon document submission.

·   The ALMM will be regularly updated and accessible on the MNRE website.

·   The Ministry retains the right to conduct production, sale audits, quality tests, and facility inspections anytime for compliance checks.

·   Non-compliance will lead to the removal of the manufacturer from the ALMM.

·   Only models and manufacturers from the ALMM are eligible for Government or Government-assisted Projects and initiatives in the country.

·   The order aims to streamline and standardize the quality and performance of solar PV modules in India.

Rationale Behind the Policy

  • Reducing Dependence on Imports: Aim to decrease imports, particularly from China, which controls 80% of the global solar supply.
  • 2030 Solar Energy Goals: India targets sourcing 500 GW of electricity from non-fossil fuel sources by 2030.
  • Past Performance: Despite a 40 GW annual target, India has installed only around 13 GW in the last five years.
  • COVID-19 Impact: The pandemic has been cited as a reason for the slower progress in achieving solar installation targets.
  • Economic and Diplomatic Factors: The policy is influenced by economic considerations and diplomatic relations with major solar panel exporting countries.
  • Domestic Industry Support: The policy aims to support and bolster the domestic solar panel manufacturing industry.

Challenges Confronting the Domestic Industry

Reliance on Imports: A significant portion of India’s solar installations is currently dependent on imported panels.

Financial Burden on Manufacturers: Domestic manufacturers face challenges in competing with cheaper Chinese imports while investing in government certification.

 Implementation Delays: The government has postponed the implementation of the approved list multiple times.

Infrastructure Limitations: Limited infrastructure and production capacity hinder the growth of domestic solar panel manufacturing.

Skill Gap: A shortage of skilled labor in the manufacturing sector poses a challenge.

Supply Chain Issues: Inadequate supply chain infrastructure can impact the timely delivery of solar panels.

Market Competition: Intense competition from international manufacturers, particularly from China, affects the domestic market share.

 Technological Barriers: The need for advanced technology and equipment to produce high-efficiency solar panels poses a challenge for domestic manufacturers.

Quality vs. Nationalism: The Dilemma

  • Balancing Act: Promoting domestic manufacturing while maintaining high quality is a delicate balance.
  • Affordability and Quality Assurance: Ensuring solar power remains affordable without compromising on quality is crucial.
  • Consumer Trust: Maintaining consumer trust by delivering high-quality products is essential for the industry’s growth.
  • Global Competitiveness: The industry must strive to be globally competitive in terms of both quality and cost.
  • Ethical Considerations: Balancing nationalism with ethical considerations like fair trade and environmental sustainability.
  • Market Dynamics: Understanding and adapting to global market dynamics without compromising on quality.

The Road Ahead: Ensuring Sustainable Growth

Global Recognition: India aims to position itself as a high-quality solar panel exporter in the global market.

Prioritizing Quality: Emphasizing rigorous quality checks and standards to build trust among consumers.

Investment in Research and Development: Investing in R&D to innovate and produce high-efficiency solar panels.

Promoting Sustainable Practices: Encouraging practices like rainwater harvesting and pond restoration to support solar energy production.

 Collaboration and Partnerships: Forming partnerships with global experts to adopt best practices and technologies.

Policy Review and Adaptation: Regularly reviewing and adapting policies to meet changing industry needs and challenges.

Capacity Building: Enhancing domestic manufacturing capabilities through skill development and training programs.

Consumer Awareness: Educating consumers about the benefits of domestic solar panels to boost demand and support the industry.

Conclusion:

In conclusion, the Indian solar industry’s growth is promising, but maintaining this growth sustainably and with high quality is crucial. A balanced approach that supports domestic manufacturing, ensures quality, and promotes sustainable practices will be vital in achieving India’s ambitious solar energy goals.

Source:

https://www.thehindu.com/opinion/editorial/solar-surge-the-hindu-editorial-on-moving-away-from-imported-solar-panels/article68016322.ece/amp/

Mains Practice Question:

Discuss the challenges facing the domestic solar manufacturing sector and the importance of maintaining a balance between growth and quality. Suggest measures for ensuring sustainable growth in the Indian solar sector.

Associated Article:

https://universalinstitutions.com/indias-solar-power-program/